Classify each type of income as earned or unearned: gifts

Bond funds: a) Will lose all value if a single bond defaults b) Are investment bargains because their price is so low c) Are ris

Vsevolod [243]

Answer:

Spread the risk of individual bonds by collectively owning more and less-risky bonds, with higher and lower rates of return

Explanation:

A bond fund is a pooled investment vehicle that invests in various types of bonds. the types of bonds invested in includes cooperate bonds, government bonds and municipal bonds.

The primary objective of bond funds is to generate revenue for investors

Because bond fund is an aggregation of various types of bonds, the risk of the bond fund is lower than the risk of holding any corporate bonds. This is because risks are spread.

4 0

3 years ago

A firm has $3,600,000 in its common stock account and $36,000,000 in its paid in capital accountThe firm issued 450,000 shares o

butalik [34]

Answer:

the issue price is $88 per share

Explanation:

The computation of the issue price is shown below:

= (Common stock + paid in capital) ÷ (Number of common shares issued)

= ($3,600,000 + $36,000,000) ÷ 450,000 shares

= $39,600,000 ÷ 450,000 shares

= $88 per share

Hence, the issue price is $88 per share

3 0

2 years ago

You are set to receive an annual payment of $12,100 per year for the next 17 years. Assume the interest rate is 7 percent. How m

uranmaximum [27]

Answer:

The difference in value is worth $8,269 more in money.

Explanation:

Case 1. Payments are made at the end of each year

So here, we will use the annuity formula for computing the present value of payments that we are receiving at the end of each year.

Here

Annual Cash flow is $12,100

Interest Rate "r" is 7%

And

Number of Payments "n" will be 17

Present Value = Cash flow * [1 - 1 / (1+r)^n] / r

By putting values, we have:

Present Value = $12,100 * [1 - 1 / (1 + 7%)^17] / 7%

Present Value = $12,100 * 9.763223

Present Value = $118,135

Now

Cash 2. Payments are arising at the start of each year

Just like the case above, we will use the annuity formula for computing the present value of payments that we are receiving at the start of each year. The first payment will be at worth the same because it is received in today's price.

So

Present Value = Cash flow + Cash flow * [1 - 1 / (1+r)^n] / r

So by putting values, that were used in case 1, we have:

Present Value = $12,100 + $12,100 * (1 - (1/1.07)^16) / 0.07

Present Value = $12,100 + $12,100 * 9.446649

Present Value = $126,404

Difference in Present Value = PV of Case 1 - PV of Case 2

= $126,404 - $118,135 = $8,269

The difference in value is worth $8,269 more in money.

4 0

3 years ago

1,1. What is a Fixed Asset Register.Explain how this document assists

alukav5142 [94]

Answer:

A fixed asset register is a detailed list of all fixed assets which are owned by a business. Its main purpose is to enable an organization to accurately record and maintain both financial and non-financial information pertaining to each asset and to easily identify and verify an asset when required.

Explanation:

4 0

3 years ago

Managers today need to look past traditional viewpoints in determining the success of their company's strategy. One such approac

bogdanovich [222]

Answer:

The Balanced Scorecard

Customer satisfaction:

Perspective: Customer: This perspective concentrates on things like customer service.

Goal: Service: This would be the level of customer service.

Measure: How do our customers see us? Survey: This would be the results of an online customer satisfaction survey.

Internal processes:

Perspective: Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.

Goal: Productivity: This would concentrate on changes to the process involved in production.

Measure: How do we look to our shareholders? Analysis: This would use data from the ERP system to look into success levels of company processes.

Innovation and improvement activities:

Perspective: Innovation and Learning: This perspective is concerned with making sure employees learn and grow so they can continually innovate.

Goal: Training: This would focus on providing enhanced training opportunities for employees.

Measure: What do we need to excel at? Results: This would look at changes in the skill level of employees.

Financial measures:

Perspective: Financial: This perspective has to do with the conversion of performance into financial performance and the creation of value.

Goal: Growth: This would concentrate on an increase in sales.

Measure: Can we continue to improve and create value? Sales: This would be the annual sales figures.

Explanation:

The balanced scorecard which Bryan is developing for KanO Mines helps KanO Mines to understand how to create value in the organization. With the balanced scorecard as a strategic planning and management tool, organizational goals are communicated to KanO Mines, so that his daily activities are aligned with the organizational strategy. It also helps him to prioritize his projects, products, and services. The balanced scorecard does not only deal with perspectives and goals, it also helps KanO Mines and his manager, Bryan, to measure and monitor his progress towards achieving the set organizational strategic goals.

4 0

3 years ago