an old man thinks it is time to upgrade his maserati from 2002 to a brand new model 2017. the old car has a residual value as represented by the index 500, 1000, 1500, and 2000, where 500 represents low quality (high maintenance costs) and 2000 represents high quality (low maintenance costs). each index value is equally likely. many students are interested in the car, which has become affordable. assume that the gain to trade equals 250 (measured in index units). (a) suppose that neither the old man nor the students no know much about cars. this assumption represents genuine uncertainty. what is the market price of the car? (b) suppose that the old man is greedy and knowledgeable about cars, while students are clueless about the quality of the car. the old man knows the true value, while the students only know the distribution. this assumption represents extreme infor- mation asymmetry. what is the market price of the car?
Answers
The market price of the car would be 1750 index units.
(a) In the case of genuine uncertainty, the market price of the car can be calculated as the expected value of the residual value index, taking into account the gain to trade of 250 index units. Therefore, the market price would be:
Market price = Expected residual value index + Gain to trade
Market price = (500 + 1000 + 1500 + 2000)/4 + 250
Market price = 1375
Therefore, the market price of the car would be 1375 index units.
(b) In the case of extreme information asymmetry, the old man would try to sell the car at a price close to its true value, while the students would be willing to pay a higher price due to their lack of knowledge about the car's quality. Therefore, the market price would be closer to the true value of the car.
If the old man knows the true value of the car, he would know the true residual value index. Let's say the true residual value index is 1500. The old man would try to sell the car at a price close to the true value, while the students would be willing to pay a higher price due to their lack of knowledge. Therefore, the market price would be:
Market price = True residual value index + Gain to trade
Market price = 1500 + 250
Market price = 1750
Learn More about market price here :-
https://brainly.com/question/15142612
#SPJ11
Related Questions
Where can water in the atmosphere come from? Select all possible answers.
A. oceans. B. plants. C. ice. D. puddles
Answers
Answer: A. It comes from oceans
how many questions should the survey contain to adequately address all possible new menu items, including the notion of assessing the desirability of new cuisines? in short, how can it be determined that all necessary items will be included on the survey without the risk of ignoring menu items that may be desirable to potential customers?
Answers
In order to determine how many questions a survey should contain to adequately address all possible new menu items, the several steps which can be taken are:
Brainstorm a comprehensive list of all potential new menu items, including new cuisines and dishes that are not currently offered.Categorize the potential new menu items into groups, such as appetizers, entrees, desserts, etc.Develop questions that address the desirability of each potential new menu item within each category. Use a Likert scale (e.g. 1-5 or 1-7) to measure the level of interest for each question etc.How can these adequately address all possible new menu items?By following these steps, it is possible to develop a comprehensive survey that addresses all possible new menu items, including the desirability of new cuisines, without the risk of ignoring menu items that may be desirable to potential customers.
However, the number of questions in the survey will depend on the number of potential new menu items and the level of detail required for each question. It is important to strike a balance between comprehensiveness and survey length to ensure high response rates and reliable results.
Read more about survey
brainly.com/question/14610641
#SPJ1
arcelia corp.'s bank statement has an end balance of $40,000. the deposits outstanding were $7,000. a note was collected by the bank for $2,000. checks outstanding at the end of the month were $1,000. using the bank statement, what is the corrected cash balance? multiple choice question.
Answers
46.000 $. $40,000 + 7,000 - 1,000 = $46,000. The bank statement already shows the note that was received.
What Is a Legal Bank Statement?Every month, the bank will normally send the account holder an official bank statement with a summary of all the transactions made on the account. Information about bank accounts, including account numbers and a thorough list of deposits and withdrawals, can be found in bank statements.
What is contained in a bank statement?A bank statement is a summary of every transaction that took place in your account during a certain time frame, typically a month. Account balances, deposits, withdrawals, fees, and contact details can all be found in statements.
To know more about bank statement visit:
https://brainly.com/question/24007779
#SPJ1
At which stage of the product life cycle do you differentiate your product so that it will appeal to additional market segments?.
Answers
At which stage of the product life cycle do you differentiate your product so that it will appeal to additional market segments in the growth stage.
The time period market segment section refers to folks that are grouped collectively for advertising purposes. Market segments are a part of a bigger marketplace, frequently lumping people collectively primarily based totally on one or greater comparable characteristics.
The product life cycle is the development of a product via five wonderful stages—development, introduction, growth, maturity, and decline. The idea changed into evolved through German economist Theodore Levitt, who posted his Product Life Cycle version withinside the Harvard Business Review in 1965. We nonetheless use this version today.
Learn more about growth stage here:
https://brainly.com/question/28841122
#SPJ4
T/F. Investors in growth funds earn their return through capital gains rather than through dividends.
Answers
True.
Investors in growth funds typically earn their return through capital gains rather than dividends. This is because growth funds invest in companies with high growth potential that are reinvesting their profits back into the business, rather than paying out dividends to shareholders.
As these companies grow and increase in value, the value of the investor's shares in the growth fund also increases, leading to capital gains.
Additionally, growth funds often have a higher level of risk and volatility compared to income or value funds, making them more suitable for investors with a longer investment horizon.
For more questions like Investment click the link below:
https://brainly.com/question/17252319
#SPJ11
Visit the Web site for a different well-known company, and find the section that lists the company's values. What are the company's values? How do they relate to the products the company sells? Did anything surprise you about the company's values? Why or why not? TIP: If the company's Web site doesn't describe its values, choose a different company. (1-5 sentences
Answers
Visit the Web site for a different well-known company, and find the section that lists the company's values.
I looked through the Microsoft.com company website.
Innovation, diversity and inclusion, CSR, AI, reliable computing, respect, integrity, and accountability are among the core principles highlighted.
Microsoft provides a wide range of goods and services, and all of its values are consistent with the work the business does.
This is not surprising to me because the corporation makes this point in its advertising and other materials.
What are their core values about?Among the mentioned core values are;
Technology can and should be a force for good, and we believe that significant innovation can and will make the world a better place in both large and little ways.
Diversity and inclusiveness are important to our success. To enlighten, challenge, and push our thinking, we draw on the strengths, experiences, and many points of view of our customers and staff.
AI - Our belief is that AI can enhance your talents, free you up to engage in more creative and strategic activities, and assist you or your organization in achieving more when it is created with humans at the heart.
They acknowledge full accountability for all choices, deeds, and outcomes. Therefore, Microsoft provides a wide range of goods and services, and all of its values are consistent with the work the business does.
Learn more about company's values from
https://brainly.com/question/13732928
#SPJ1
if the cross price elasticity of demand between two goods is negative, then the two goods are independent. complements. unrelated. substitutes.
Answers
If the cross price elasticity of demand between two goods is negative, it indicates that the two goods are complements, meaning an increase in the price of one good leads to a decrease in the demand for the other.
The cross price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. If the cross price elasticity of demand is negative, it indicates that the two goods are complements.
Complementary goods are products that are typically consumed together or used in conjunction with each other. For example, coffee and creamer, or smartphones and mobile data plans. When the price of one complement rises, consumers tend to reduce their demand for that particular good. Consequently, this decrease in demand for one product leads to a decrease in the demand for the complementary good as well.
The negative cross price elasticity reflects the inverse relationship between the prices and quantities demanded of the two goods. As the price of one complement increases, consumers may find it less affordable or less attractive, resulting in a decrease in the quantity demanded of that good and, subsequently, a decrease in the quantity demanded of its complementary good.
Understanding the cross price elasticity of demand is crucial for businesses to determine the impact of price changes on the demand for their products and the potential effect on related goods in the market.
To know more about demand, visit:
https://brainly.com/question/30614099
#SPJ11
Which of the following are hybrid organizations that offer the same liability protection as a corporation but may be taxed as either a partnership or corporation? (Check all that apply) Please help asap
⬜️ CPA
⬜️ LLC
⬜️ LLP
⬜️ DDA
⬜️ EPA
Answers
Answer:
CPA, DDA, AND EPA
Explanation:
LLC LLP are hybrid organizations that offer the same liability protection as a corporation but may be taxed as either a partnership or corporation. The answer is OPTION B and C.
LLCs and LLPs are generally not taxed at the entity level like a traditional C Corporation. Instead, their profits and losses pass through to the individual owners' tax returns, similar to partnerships. This is often referred to as "pass-through taxation." The owners report their share of the company's income on their personal tax returns, and they are responsible for paying taxes on that income.
On the other hand, corporations, especially C Corporations, may be subject to double taxation—once at the corporate level when the company generates profits and again at the individual level when dividends are distributed to shareholders.
In summary, LLCs and LLPs offer liability protection and flexibility in taxation, but they are not taxed the same way as corporations. It's important to consult with legal and tax professionals to determine the best business structure for your specific situation and goals.
To learn more about corporations, click here.
https://brainly.com/question/32217998
#SPJ3
a house sold for $420,000. the buyer made a 20% down payment. monthly interest on the loan was $1,400. what was the interest rate on the loan?
Answers
The interest rate on the loan is 0.06% on interest on the loan of $1,400.
Interest = Principal × Rate × Time / 100
1400 = 420,000 × R × 0.20 / 100
1400 = 4200 × R × 0.20
1400 × 0.20 /4200 = R
14 × 0.20 / 42 = R
0.06 = R
When one or more individuals, businesses, or other entities lend money to additional individuals, businesses, or other entities, it is referred to as a loan. The receiving party, or borrower, incurs debt and is frequently liable for both principal borrowed and interest payments on the debt until it is repaid. A promissory note used to prove the obligation will typically include information like the principal amount borrowed, the interest rate the lender is charging, and the due date for repayment. The relevant assets will be temporarily divided between the lender and the borrower as part of the loan. Interest payments motivate the lender to approve the loan.
To learn more about interest rate click here
brainly.com/question/13324776
#SPJ4
Which of these factors is an advantage to using cash?
Answers
Answer:
B no fees or charges
Explanation:
Your welcome
Answer:
B.no fees or changes this is the right one
Using the PV function, if the interest rate is an annual rate and the payments are quarterly, what should you type after the cell address?
A. /12
B. /6
C. /4
D. /2
Answers
If the interest rate is an annual rate and the payments are quarterly, in the PV function, you should type C. /4
How to use the PV function in spreadsheet ?The PV function in spreadsheet is used to calculate the present value of an investment or a series of payments. The function requires several arguments, including the interest rate, the number of payment periods, and the payment amount.
If the interest rate is an annual rate but the payments are made quarterly, you need to adjust the interest rate to reflect the quarterly payment periods. To do this, you divide the annual interest rate by the number of payment periods per year. In this case, since the payments are quarterly, you would divide the annual interest rate by 4.
Find out more on the PV function at https://brainly.com/question/28742502
#SPJ1
PLEASE HELPP:
Jones, Inc is trying to schedule a holiday party and would like to collect suggestions about the best date and location from their employees. The company has 200 employees on staff. What is the best form of communication to utilize and why?
Answers
Answer:
the best way is phone
Explanation:
becuase to get all of them in a group and tell them all
Materials derived from natural resources clearly defines which of the following?
A.Processed goods
B.Raw goods
C.Finished goods
D.Intangible goods
Answers
Answer:
B.Raw goods
Explanation:
Natural resources are useful materials extracted from the earth for use in the production of other goods. The extracted materials are refined into final products or used as raw materials to make other goods. For example, gold and oil are extracted and refined into marketable products. Water and wood are raw materials used in producing paper.
Natural resources come from nature. They are extracted raw and processed into other products or used as raw materials to produce other goods.
A promise to do something that one is already under a legal obligation to do is not consideration. True or False
Answers
"A promise to do something that one is already under a legal obligation to do is not consideration" is true.
Consideration is an essential element of a valid contract, and it refers to the exchange of something of value between the parties involved in the contract. For example, if party A promises to pay party B $100 in exchange for a service, then the $100 is the consideration for the service.
However, if party A promises to do something that they are already legally obligated to do, then that promise does not constitute valid consideration for a new contract. This is because the promise does not involve a new exchange of value or obligation.
For instance, suppose that party A is contractually obligated to paint party B's house by a certain date. If party A later promises to complete the job by the same deadline in exchange for additional payment, this promise would not be valid consideration for a new contract because party A is already obligated to complete the job on time under the existing contract.
Thus, a promise to do something that one is already under a legal obligation to do is not considered valid consideration for a new contract.
For more about consideration:
https://brainly.com/question/15445409
#SPJ11
___ requrements are courses that build knowledge and skills in a specific field.
A. major
B. general studies
C. specialization
D. elective
Answers
D. elective requrement are courses that build knowledge and skills in a specific field
Explain the role audit committee plays in the company
Answers
Answer:
The primary purpose of a company's audit committee is to provide oversight of the financial reporting process, the audit process, the company's system of internal controls and compliance with laws and regulations. ... As such, CPAs report directly to the audit committee, not management.
Hope this helps.☝
The Plastics Division of Weston Company manufactures plastic molds and then sells them to customers for $70 per unit. Its variable cost is $30 per unit, and its fixed cost per unit is $10. Management would like the Plastics Division to transfer 10,000 of these molds to another division within the company at a price of $40. The Plastics Division has excess capacity of 10,000 units for plastic moldings. What is the minimum transfer price that the Plastics Division should accept
Answers
Answer:
$30
Explanation:
Based on the information given in a situation where the Plastics Division has 10,000 units as the excess capacity for plastic moldings in which the VARIABLE COST is $30 per unit which means that the MINIMUM TRANSFER PRICE that the Plastics Division should accept will be the
VARIABLE COST per unit amount of $30.
Therefore the MINIMUM TRANSFER PRICE that the Plastics Division should accept is $30
Dark colors in clothes are encouraged rather than bright colors, or patterns.
True
False
Answers
Answer:
true
Explanation:
Read the excerpt from It's Our World, Too!: Young People Who Are Making a Difference.
Andy Percifield had been busy, too. There were only two days before the next game. He was determined that his school would do the right thing, no matter what the principal said. He had an idea: maybe the students themselves could write a letter against racism that could be read over the microphone in the press box to everyone at the game. It would have to be powerful enough to satisfy the protesting players and shame the racist fans.
Which statement best describes how Andy has been affected by the conflict?
Answers
Hello. You forgot to show the answer options. The options are:
Andy has lost his faith in the system after talking to the principal and he has decided to act on his own.
Andy has become very angry about the racist fans and he will put an end to their comments no matter what.
Andy is intent on making a change for the better and putting an end to the racist comments coming from the racist fans.
Andy feels bad for the protesting players, but he does not want to get too involved in other people’s problems.
Answer:
Andy is intent on making a change for the better and putting an end to the racist comments coming from the racist fans.
Explanation:
Racism is the conflict that is bothering Andy, affecting him to the point of looking for a way to diminish racist comments and even prevent them from happening. In summary, we can say that the conflict causes Andy to look for changes in his schools, suppressing racism and promoting a more comfortable and fair environment for all students.
Answer:
I think it is:
C. Andy is intent on making a change for the better and putting an end to the racist comments coming from the racist fans.
Explanation:
Which of the following is not an example of professional behavior
?
Answers
A call report is essentially the same thing as a conference report only it is specific to Yanıtınız: An agency status meeting A personal meeting A short conversation between the account manager and client A group meeting Yanıtı temizle
Answers
A call report is essentially the same thing as a conference report only it is specific to a personal meeting. So, option b is correct.
A call report is a document that contains a summary of a call or meeting with a client, typically a sales call or other business interaction. The document's goal is to summarize the most critical points discussed in the meeting, including the agenda, action items, and follow-up requests. It serves as a reminder for both the client and the sales rep, ensuring that nothing falls through the cracks when it comes to important next steps.
A conference report is a document that summarizes the major discussion points from a conference, seminar, or meeting. The report should include important takeaways, recommendations, and suggested action items as well as detailed information about the event itself. A conference report may be used as an official document by the conference organizers and may also be shared with attendees, stakeholders, or the public.
A call report is usually created after a phone call or meeting between an account manager and a client. In contrast, a conference report is created following a group meeting, seminar, or conference. Therefore, the key difference is that call reports are typically specific to a personal meeting while conference reports are specific to a group meeting. So, option b is correct
To learn more about conference report, here:
https://brainly.com/question/2303347
#SPJ11
Complete question:
A call report is essentially the same thing as a conference report only it is specific to Yanıtınız:
An agency status meeting
A personal meeting
A short conversation between the account manager and client A group meeting Yanıtı temizle
What reduces the amount of taxes on your income?
Answers
Contributing to a retirement account through an employer-sponsored plan or an individual retirement account is a useful approach to lower taxable income (IRA).
What Are the Best Ways to Lower Taxable Income?Among both individuals and business owners, how to reduce taxes is one of the most frequently discussed financial planning topics. For many, the Tax Cuts and Jobs Act (TCJAhigher )'s standard deductions resulted in tax savings (even though the TCJA did eliminate many other itemized deductions and the personal exemption).With a little planning, taxable income can be decreased even more.Contributing to a retirement account through an employer-sponsored plan or an individual retirement account is a useful approach to lower taxable income (IRA).Both flexible and health spending accounts contribute to a decline in taxable income during the year in which the contribution is made.For full- or part-time self-employed individuals, there are still a variety of deductions available to reduce taxable income.Your taxable income may be decreased by retirement savings.Please inquire with your workplace if they provide flexible spending programs.To Learn more About lower taxable income refer to:
https://brainly.com/question/18624843
#SPJ4
6. Which is NOT a part of your budget?
O discretionary expenses
O fixed expenses
O realized income
O gross pay
7. To put money into a savings account, CDs, and stocks is to __.
O invest
O diversify
O be risk-adverse
O secure assets
10. __ is a financial term that denotes when an asset increases in value.
O depreciate
O appreciate
O growth
O increase
11. Which balance accrues the most interest in a month? (Use photo attached)
O $458.90
O $946.95
O $2,249.80
O They all accrue the same amount of interest.
12. You owe $2,875.59 on a credit card at a 13.7% APR. If you pay $400.00/month, what is the difference in the amount of interest accrued by the end of the month if you pay at the beginning of the month versus the end of the month?
O $28.26
O $4.57
O $32.83
O $61.09
13. Your housing and fixed expenses are $685.70/month. If they are 33% of your realized income, how much is your realized income per month?
O $226.28
O $20.78
O $2,285.67
O $2,077.88
14. If you paid $15.60/hr. Your deductions are FICA (7.65%), federal tax withholding (11.15%), and state tax withholding (6.5%). You work 15 hr/wk and save 10% each week. How much do you save each month?
O $69.92
O $79.31
O $93.60
O $17.48
15. You are paid $13.70/ hr. You work $40 hr/wk and your deductions are FICA (7.65%), federal tax withholding (11.55%), and state tax withholding (8.35%). Your housing and fixed expenses are 30% of your realized income per month and you want to save 6 months worth in an emergency fund. How much do you need to save?
O $714.66
O $2,858.58
O $986.40
O $476.43
16. Your realized income is $36,864.00/yr. Your fixed and housing expenses are 32% and your savings are 15% of your realized income per month. How much discretionary money do you have, excluding savings, per month?
O $1,628.16
O $2,088.96
O $19,537.92
O $2,566.20
17. Your friend wants to pay off his credit card with a balance of $880.00 and an interest rate of 16.65% APR by getting a loan from you. You agree to the loan, but insist your friend pay you interest of 3.25% APR. Your friend agrees. How much interest does your friend save at the end of the first month by paying you instead of the credit card?
O $12.21
O $2.38
O $9.83
O $14.59
18. You earn $8.60/hr. You work 32 hr/wk and your deductions are FICA (7.65%), federal tax withholding (10.6%), and state tax withholding (8.25%). How much do you have direct-deposited bi-weekly?
O $550.40
O $202.27
O $368.50
O $404.54
19. You have a realized income of $3,264.71/month. Your housing and fixed expenses are 36% of your monthly realized income. You want to save 4 months of an emergency fund within 9 months. How much must you save each month?
O $1,450.98
O $522.36
O $4,701.20
O $1,175.30
20. You are purchasing a home 12 years from now. The estimated purchase price is $171,600.00. You want to make a 20% down payment. How much do you need to save per month to reach your goal?
O $238.33
O $34,320.00
O $2,860.00
O $23,833.33
Answers
Realized income is NOT part of your budget. The budget includes discretionary expenses, fixed expenses, and gross pay.
What does it mean to invest?To put money into a savings account, CDs, and stocks is to invest.
Appreciate is a financial term that denotes when an asset increases in value.
Paying at the start and end of the month yields a $4.57 variation in the interest accumulated by month-end.
Assuming that one-third of your actual income includes housing and fixed expenses, then your monthly actual income stands at $2,077.88.
If you work 15 hr/wk and save 10% each week, you save $69.92 each month.
Read more about income here:
https://brainly.com/question/30157678
#SPJ1
Swaggy and cool peeps tryna answer or find questions about their business course
Answers
Answer:
..............................
Monetary neutrality, the irrelevance of the money supply in determining values of _____ variables, is generally thought to be a property of the economy in the long run.
Answers
Monetary neutrality refers to the idea that changes in the money supply do not have a long-term impact on real variables in the economy. Real variables are those that are adjusted for inflation, such as output, employment, and real interest rates.
In the long run, changes in the money supply do not affect the values of real variables. This is because prices and wages adjust over time to changes in the money supply, maintaining the overall equilibrium in the economy.
For example, let's say the central bank increases the money supply by printing more currency. Initially, this increase in money supply may lead to higher prices as people have more money to spend. However, as prices increase, people's expectations change, and wages and prices adjust accordingly. This process is known as the quantity theory of money.
In the long run, the increase in the money supply does not impact real variables such as output or employment. This is because any increase in prices is matched by an increase in wages and other input costs, resulting in a proportional increase in nominal values without affecting the real economy.
Overall, monetary neutrality suggests that changes in the money supply primarily impact nominal variables, such as prices and nominal interest rates, rather than real variables. This concept is important for understanding the long-term behavior of the economy and the role of monetary policy in influencing economic outcomes.
To more about equilibrium visit:
https://brainly.com/question/30694482
#SPJ11
Checking a credit report is a good way to
know whether credit is improving.
reduce the amount of money owed.
determine which debts to pay off.
decrease interest payments.
Answers
Checking a credit report is a good way to know whether credit is improving.
What is a credit report?A credit report refers to a statement that has information about your credit activity and current credit situation such as loan paying history and the other status of your credit accounts.
A credit report contains personal information, credit account history, credit inquiries and public records. This information is reported by your lenders and creditors to the credit bureaus. Your credit report can be used in a variety of situations, from getting a credit card to buying a house or even applying for a job.
Why is checking a credit report important?Checking your credit history is a good way to know whether credit is improving. It also helps you in understanding your current credit position.
Thus, regularly checking your credit reports can help you be more aware of what lenders may see and it can also help you detect any inaccurate or incomplete information.
Hence, option A is correct.
To learn more about credit reports here:
https://brainly.com/question/12609157
#SPJ2
century national bank has offices in several cities in the midwest and the southeastern part of the united states. mr. dan selig, president and ceo, would like to know the characteristics of his checking account customers. what is the balance of a typical customer
Answers
The characteristics of checking account customers can vary widely depending on various factors such as age, income, occupation, spending habits, and financial goals.
Some typical characteristics of checking account customers include having a stable source of income, maintaining a reasonable account balance, using their account for daily expenses and bill payments, and possibly having a relationship with the bank that includes other types of accounts or financial products.
However, it's important to note that specific characteristics may vary from one customer to another, and that different banks may have different customer profiles based on their specific offerings and marketing strategies.
Learn more about marketing strategies :
https://brainly.com/question/8667477
#SPJ4
The complete qustion is :
What are the characteristics of checking the account customers ?
Rawlco Communications operates 15 radio stations throughout the West. The following events occurred during September.
a) Placed an order for office supplies costing $1,800. Supplier intends to deliver later in the month.
b) Purchased equipment that cost $23,000; paid $6,000 cash and signed a promissory note to pay $17,000 in one month.
c) Negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company's checking account.
d) Hired a new finance manager on the last day of the month.
e) Received an investment of $11,000 cash from the company's owners in exchange for issuing common shares.
f) Supplies ordered in (a) were received, along with a bill for $1,800.
Prepare journal entries to record each transaction.
Answers
The journal entry for the transaction involving the receipt of office supplies and a bill is:
Debit - Accounts Payable - $1,800
Credit - Office Supplies - $1,800
The journal entries for the provided transactions are as follows:a) Office supplies are purchased on credit. The company is going to use these supplies to conduct daily operations. The journal entry for this transaction is:Debit - Office supplies - $1,800Credit - Accounts Payable - $1,800b) Equipment is purchased with cash and promissory note. Equipment is an asset that is used by the company to conduct daily operations. The journal entry for this transaction is:Debit - Equipment - $23,000Credit - Cash - $6,000Credit - Notes Payable - $17,000c) Bank loan is negotiated and signed, and cash is deposited in the company's checking account. The journal entry for this transaction is:Debit - Cash - $5,000Debit - Bank Loan - $0Credit - Checking Account - $5,000Credit - Bank Loan Payable - $0d) A new finance manager is hired. The journal entry for this transaction is:Debit - Salaries and Wages Expense - $0Credit - Cash - $0e) Investment is received by the company from its owners in exchange for issuing common shares. The journal entry for this transaction is:Debit - Cash - $11,000Credit - Common Stock - $11,000f) Office supplies are received, and a bill is received for them.
Learn more about Office Supplies here :-
https://brainly.com/question/30393135
#SPJ11
10)
How might a mission statement help Donna with her new
business?
Answers
A mission statement can help Donna with her new business by providing clarity and direction for her venture. It serves as a guiding statement that outlines the purpose, values, and goals of the business.
It helps Donna align her decisions, actions, and strategies with the overall mission, facilitating focus and consistency in her business operations. A mission statement is a concise statement that articulates the purpose and core values of a business. It outlines what the business aims to achieve and how it intends to operate. For Donna, having a mission statement for her new business can provide several benefits.
Firstly, it helps Donna define the purpose and direction of her business. It clarifies the reason for starting the business and what it aims to accomplish, providing a sense of focus and clarity.
Secondly, a mission statement helps Donna communicate her business's values and principles to stakeholders, including employees, customers, and investors. It sets the foundation for building a strong company culture and aligning everyone's efforts toward a common goal.
Lastly, a mission statement can serve as a guide for decision-making and strategy development. When faced with choices or challenges, Donna can refer to her mission statement to ensure that her actions align with the overall purpose and values of her business.
A mission statement plays a crucial role in helping Donna with her new business by providing clarity, guiding decision-making, and aligning stakeholders toward a common vision.
In conclusion, a mission statement can significantly benefit Donna in her new business. It provides clarity and direction, communicates values to stakeholders, and guides decision-making and strategy development. By establishing a mission statement, Donna can effectively define her business's purpose and goals, foster a strong company culture, and make informed decisions that align with her business's overall mission. This helps create a solid foundation for success and growth in her new venture.
To know more about goals, visit:
https://brainly.com/question/25534066
#SPJ11
Sixx AM Manufacturing has a target debt-equity ratio of 0.56. Its cost of equity is 16 percent, and its cost of debt is 10 percent. If the tax rate is 34 percent, what is the company's WACC? Round to the nearest XX.XX%.
Answers
The Weighted Average Cost of Capital (WACC) is the average rate of return a company needs to earn on its investments to satisfy its investors. It is calculated by weighting the cost of equity and the cost of debt based on the proportion of equity and debt in the company's capital structure.
In this case, Sixx AM Manufacturing has a target debt-equity ratio of 0.56, which means that for every dollar of equity, it has 0.56 dollars of debt.
To calculate the WACC, we need to determine the proportion of equity and debt in the capital structure. Let's assume the total value of the company's capital structure is $100.
Equity proportion = (1 - Debt-equity ratio) = (1 - 0.56) = 0.44
Debt proportion = Debt-equity ratio = 0.56
Next, we calculate the cost of equity and the cost of debt after considering the tax rate:
Cost of equity = 16%
Cost of debt = (1 - Tax rate) * 10% = 0.66 * 10% = 6.6%
Now, we can calculate the WACC using the formula:
WACC = (Equity proportion * Cost of equity) + (Debt proportion * Cost of debt)
WACC = (0.44 * 16%) + (0.56 * 6.6%)
WACC = 7.04% + 3.70%
WACC = 10.74%
Therefore, Sixx AM Manufacturing's weighted average cost of capital (WACC) is 10.74%, rounded to the nearest hundredth. This is the minimum return the company needs to earn on its investments to meet the expectations of its investors given its capital structure and costs of equity and debt.
learn more about cost here:
https://brainly.com/question/32402491
#SPJ11