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3 years ago

The process of converting an exchange from a mutual ownership structure to a stock owned is known as what?

1 answer:

5 0

The correct answer is demutualization. This is the process used in means of having to form a joint stock company in which they are likely from a mutual organization that is customer owned or has likely a cooperative changes in a legal form.

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Continued losses in an industry will cause some firms to reduce output or eventually leave the industry.

Oliga [24]

The statement " Continued losses in an industry will cause some firms to reduce output or eventually leave the industry " is True

Explanation:

The goal of all businesses is to reduced risk and reduce expenses while retaining productivity and deliver a good product at a consistent rate and cost.

Although company owners know how much they can deliver under optimum organisational and financial conditions, this volume is seldom consistently produced by most firms. Unexpected events inevitably lead to less than the expected amount.

For example, a computer may stop working, and employees can stop producing while waiting for machine repairs. In other situations, production is slowed down or halted by planned events.

5 0

3 years ago

Macro equilibrium in the income-expenditure model occurs where aggregate expenditure is equal to national income; this occurs wh

Paladinen [302]

Answer:

45 degree line

Explanation:

In the equilibrium in income and expenditure model, expenditure equals national income when the expenditure crosses the 45 degree line. This means that in income and expenditure being at equilibrium, it means that there is no shift, change, deviation from the outcome.

Expenditure below and above 45 degree is not in equilibrium as that means that government income is either less than or greater than the expenditure respectively.

Cheers

6 0

3 years ago

RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $65,000 purchase price

lesantik [10]

Answer:

The project return is lower than the minimum accepted of 15% thus not profitable for the company

Net Present Value -1.279,86‬

Explanation:

Loan Present value

PMT of the loan:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 65,000

time 4

rate 0.12

$65000 \div \frac{1-(1+0.12)^{-4} }{0.12} = C\\$

C $ 21,400.238

Present value at MARR:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $21,400.24

time 4 years

rate 0.15

$21400.2383598698 \times \frac{1-(1+0.15)^{-4} }{0.15} = PV\\$

PV $61,097.2175

Salvage value:

$\frac{Salvage }{(1 + rate)^{time} } = PV$

Salvage $9,000

time 9 years

rate 0.15000

$\frac{9000}{(1 + 0.15)^{9} } = PV$

PV 2,558.36

Cost savings present value:

Cost savings per year: 25,000

less maintenance expenses (13,000)

net cash flow 12,000

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $ 12,000

time 9 years

rate 0.15

$12000 \times \frac{1-(1+0.15)^{-9} }{0.15} = PV\\$

PV $57,259.0070

Net Present Value

PV cost savings + PV salvage - PV loan payment

57,259 + 2,558.36 - 61,097.22 = -1.279,86‬

3 0

3 years ago

Alamos Co. exchanged equipment and $18,900 cash for similar equipment. The book value and the fair value of the old equipment we

12345 [234]

Answer:

C. $ 0.

Explanation:

Provided that

Book value of the old machine = $81,300

The Fair value of the old machine = $91,400

So, we can see that there will be a gain of

= Fair value - book value

= $91,400 - $81,300

= $10,100

But this gain would not be recognized in case of lacking commercial substance. So, there would be zero gain or loss

7 0

3 years ago

Roger inherited 100 shares of Periwinkle stock when his mother, Emily, died. Emily had acquired the stock for a total of $60,000

Serjik [45]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0

3 years ago