Answer:
- credit management
- receipt and disbursement of funds
- inventory control
Explanation:
Activities such as stablishing budgets and plans are done once every year. And the sale of stocks and bonds is done only if the company makes and IPO or an emission of Bonds which are impossible to occur daily.
Answer:
(B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100
Explanation:
The declaration of the dividends will not affect the exercise price of the call, it will still be $50 per stock. Also, the number of stocks included in the call will not change because a cash dividend is declared, they will still be 100 stocks included in the call contract. The cash dividend affects the market price of the stock, but not the call or put options.
Answer and Explanation:
The journal entries are shown below:
On Oct 15
cash Dr $21,000
Service charge expense Dr (3% of $30,000) $9,000
To Account receivable $30,000
(being the cash is recorded)
On Oct 25
cash Dr $882
Service charge expense Dr (2% of $900) $18
To Sales $900
(being the cash is recorded)
These two entries should be recorded
Answer:
At 7% price of bond is $508.35
at 6% price of the bond is $558.39
at 10% price of the bond is $385.54
Explanation:
The present value formula given below is very useful here:
PV=FV*(1+r)^-N
fv=$1000
r=7%
N=10
PV=1000*(1+0.07)^-10
PV=1000*(1.07)^-10
PV=$508.35
at 6% rate of return the price of the bond is computed as follows
fv=$1000
r=6%
N=10
PV=1000*(1+0.06)^-10
PV=1000*(1.06)^-10
PV=$558.39
at 10% rate of return the price of the bond is computed as follows
fv=$1000
r=10%
N=10
PV=1000*(1+0.1)^-10
PV=1000*(1.1)^-10
PV=$385.54
