<span>Clarion should expect to recognize interest revenue on their CD both on December 31st 2015 and May 1st 2016. They will receive it in December thanks to end of your returns and then it will pay out its full amount 6 months from the purchase date which is on May 1st of 2016.</span>
Answer:
The correct answer is a) Physical space for the gallery.
Explanation:
<u>Variable costs</u> fluctuate according on the production of goods of a company, while <u>fixed costs</u> stay the same regardless of the production output. Reviewing all the options:
- Wages paid to three part-time employees <u>vary</u> depending on the amount of hours they work.
- Accountant's fees for preparing tax returns <u>vary</u> depending on the time spent preparing the records.
- The costs of purchasing art work to sell in the gallery <u>vary</u> depending on the amount of art purchased and its value.
That leaves us with option A. The physical space for the gallery. Buildings and rent are known to be a Fixed cost for companies because they stay the same regardless of the production output.
The statement above is TRUE. This is because luxury cars are superior goods.
Superior goods refers to those goods whose consumption increases as their prices increases, that is, the higher the price, the higher the quantity demanded. This type of goods are usually scarce and and they have high prices. A good example of superior good is luxury car.
Answer:
The price of the bond is $104.15
Explanation:
The price of the company's new two year debt is the present value of its future cash flows.
Since the debt pays coupon semi-annually the number of coupons payable over two years is 4 and pays par value with the fourth coupon.
Yield to maturity is 3.9%+0.8%=4.7%/2=2.35% (semi-annually)
coupon rate is 6.9%/2=3.45%
PMT=3.45%*100
PMT=$3.45
par value $100
nper=2*2=4
Using present value formula in excel
pv=(rate,nper,pmt,fv)
pv=(2.35%,4,3.45,100)
pv=$104.15
Answer:
Operating expenses
Explanation:
Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .
Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.
Examples include rent , payroll ,transportation , security fees among others.
