You will have $9257.60 for your trip in 7 years .
What is future value?A financial concept known as future value (FV) assigns a value to an asset based on anticipated factors like future interest rates or cashflows.
We will be using the future value formula, to calculate the future value of the principal amount $7,000. The interest given by bank is 4%, i.e., 0.04 which is compounded monthly.
As the interest is compounded monthly, we divide the interest rate by 12 and multiply the number of years by 12.
We get,
n=7x12=84
i=0.04/12
The formula of Future value is
[tex]FV=P(1+i)^{n} \\FV= 7000(1+\frac{0.04}{12})^{84} \\FV=$9257.60[/tex]
Therefore, the future value at the end of 7 years there will $9,257.60 for the trip to Europe.
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The acquisition of treasury stock by a corporation increases its total assets and total stockholders' equity. decreases its total assets and total stockholders' equity. has no effect on total assets and total stockholders' equity. requires that a gain or loss be recognized on the Income statement. Outstanding stock of the West Corporation included 20,000 shares of exist5 par common stock and 5,000 shares of 6%, exist10 par non-cumulative preferred stock. In 2009, West declared and paid dividends of exist2,000. In 2010, West declared and paid dividends of exist6,000. How much of the 2010 dividends was distributed to preferred shareholders'? exist4,000. exist7,000. exist3,000. None of the above The effect of the declaration of a cash dividends by the board of directors is to
Treasury stock is a counter equity account since it diminishes total shareholders' equity on a company's balance sheet. The two ways for registering treasury stock are the cost method and the par value approach.
Mandates that a gain or loss be reported on the Income statement. The West Corporation had 20,000 shares of exist5 par ordinary stock and 5,000 shares of 6%, exist10 par non-cumulative preference stock outstanding. West declared and paid dividends of exist 2,000 in 2009. West declared and paid dividends of exist 6,000 in 2010.
Treasury stock is stock that was once issued but has been repurchased and is now owned by the issuing business.Treasury stock is a counter equity account since it diminishes total shareholders' equity on a company's balance sheet.The two ways for registering treasury stock are the cost method and the par value approach.Treasury stock is a counter equity account that is represented in the balance sheet's shareholders' equity column. Treasury stock diminishes shareholders' equity by the price paid for the stock since it indicates the number of shares repurchased on the open market.To know more about treasury stock:
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What do you say in a late text response?
In case of a late text response, it's important, to be honest, and genuine in your response and to try to make up for the delay in your next interaction with the person.
There are a few things you can say in a late-text response, depending on the context and your relationship with the person you are texting. Here are a few options:
Apologize for the delay: If you are responding to a text that you received some time ago, it is generally a good idea to apologize for the delay. You could say something like, "I'm sorry for the late reply, I've been really busy."Explain the reason for the delay: If you have a good reason for not responding to the text earlier, it can be helpful to explain it to the person you are texting. This can help to show that you are not ignoring them intentionally.Continue the conversation as if no time has passed: If the conversation was not time-sensitive, you can simply continue the conversation as if no time has passed. You could say something like, "Hey, sorry for the late reply. What's new?"Learn more about the text at
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Kyle believes the price of ajax stock is about to decrease. if he wants to profit from the decline in price, he should ________ on ajax stock.
In order to increase their profit from a stock's decrease, traders purchase put options. Kyle believes the price of Ajax stock is about to decrease. If he wants to profit from the decline in price, he should buy a put on Ajax stock.
Options of the type known as "puts" gain value as a stock declines. With a put, the owner of a particular stock is able to lock in a predetermined selling price, and put sellers agree to purchase the shares at that price. Puts are popular among traders who want to make significant gains rapidly because of their ability to appreciate quickly on a little change in the stock price.
In order to increase their profit from a stock's decrease, traders purchase put options. A trader can make money from stock prices below the strike price up until the options expiration for a minor up-front investment. When purchasing a put, you often anticipate a decline in the stock price before the option expires.
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The right question is:
Kyle believes the price of Ajax stock is about to decrease. If he wants to profit from the decline in price, he should ________ on Ajax stock.
A) buy a call
B) write a put
C) buy a put
D) sell a put
a couple starts celebrating the sale of their home after their listing agent calls them with the news that they've received an acceptable offer. the listing agent says he is coming over to get their acceptance and signatures. however, by the time the agent arrives the sellers are completely inebriated. the agent has them sign the contract and then takes it to the title company. this contract is
the agent has them sign the contract and then take it to the title company. this contract is voidable
A written agreement between two parties that is voidable might become unenforceable for a variety of legal reasons, such as:
Failure to disclose a crucial fact by one or both partiesa blunder, false statement, or scamexcessive pressure or coercionLegal ineligibility of one party to enter a contract (e.g., a minor)a word or phrase that is offensivea violation of the agreement.A contract involving a minor is an illustration of one that is voidable. Although minors are able to sign contracts, they are also free to choose to break them without facing any consequences.
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What are 4 examples of economic indicators?
The example of 4 economic indicators are listed as,
1) Interest rate
2) GDP
3) Government policy
4) Existing home sales.
Here we have to identify the 4 examples for the economic indicators.
While we looking into the given question we have know that an economy's performance is measured in terms of its ability to meet economic objectives.
Here the term economic indicator in business world refers to a metric used to monitor, measure, and analyze the macroeconomy's overall health.
And here we also know that the economic indicators are frequently collected by census or survey by a federal agency or commercial business intelligence firm and then examined further to establish the proper conclusion.
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assume that smith deposits $150 in currency into her checking account in the xyz bank. later that same day, jones negotiates a loan for $900 at the same bank. in what direction and by what amount has the supply of money changed?
Assume that smith deposits $150 in currency into her checking account in the xyz bank. Later that same day, jones negotiates a loan for $900 at the same bank. The money supply increased by $900.
What transpires when the money supply rises?
Lower interest rates are often a result of increased money supply, which leads to more investment and more money in consumers' hands, which in turn boosts consumption. In response, companies place larger orders for raw materials and boost output.
How is the money supply regulated?
The RBI uses a variety of methods to control the amount of money in the economy: The central bank uses both quantitative and qualitative tools to manage the money supply. Through adjustments to the CRR, bank rate, or open market functions, quantitative instruments can control the size of the money supply.
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Assume that smith deposits $150 in currency into her checking account in the xyz bank. Later that same day, jones negotiates a loan for $900 at the same bank. The money supply increased by $900.
What happens as the money supply expands?
Increased money supply often results in lower interest rates, which encourages more investment and more money in consumers' hands, which in turn increases consumption. As a result, businesses increase their orders for raw materials and increase output.
How is the amount of money controlled?The RBI employs a range of techniques to regulate the amount of money in the economy. The central bank controls the money supply using both quantitative and qualitative instruments. Quantitative instruments have the ability to regulate the amount of money in circulation via changing the CRR, bank rate, or open market operations.
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Is data analysis and data processing the same?
Data processing involves transforming the data's format or making it more readable. Data analysis focuses on extrapolating information gleaned from the data itself, producing new knowledge and insights from which actions could be made.
To guarantee the usefulness and integrity of the data, processing procedures must be meticulously documented. Data analysis refers to procedures and techniques used on data to identify patterns, characterize facts, create hypotheses, as well as test them.
The more generic word "information technology" has largely replaced the phrase "data processing" (IT).
Descriptive, diagnostic, predictive, as well as regulatory analytics were the four main categories of data analytics. Each category does have a distinct objective and function during the process of data analysis. These were also the main applications of business intelligence in business.
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the fly-by-night mortgage company makes it a practice not to lend money on any inner-city property. this practice is known as
The fly-by-night mortgage company makes it a practice not to lend money on any inner-city property. this practice is known as redlining
The practice of limiting or refusing financial services, such as loans, to particular neighborhoods or locations based on the racial or ethnic composition of the population is known as redlining. Some financial firms, especially mortgage lenders, have utilized this discriminatory strategy to target residents of particular communities or regions.
The Fair Housing Act forbids discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, familial status, or handicap. Redlining has had a substantial influence on people's ability to obtain credit and other financial services in particular places, although it can still happen in subtle or concealed ways.
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How is marginal analysis calculated?
Net benefits = marginal benefits - marginal costs is the formula for marginal analysis. The marginal advantages are equivalent to the value increase from fresh units of output.
How does marginal analysis work in economics?To maximize their prospective revenues, businesses employ marginal analysis as a decision-making tool. The focus on the next unit or individual's cost or benefit is referred to as marginal. For instance, the cost to make one more widget or the profit made by hiring one more person.
What are the fundamental tenets of marginal analysis?This hypothesis contends that utility is a fundamental idea. It can be measured and quantified, in other words. Therefore, you might claim that by consuming 1 unit of a commodity, you obtain a utility of 10 units.
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question content area on the statement of cash flows, the cash flows from operating activities section would include a.receipts from the issuance of common stock b.payments for the acquisition of investments c.cash receipts from sales of merchandise d.receipts from the sale of investments
The presented statement states that these are earnings from the investment sale.
Where ought newcomers to put their money?Investment in mutual funds entails combining money from many investors and investing it in a variety of securities, including stocks and bonds. Because, unlike with stock investing, a qualified money manager makes financial decisions for the clients, this is one of the best investments for novices.
Which investment is the best to make?Almost everyone ought to invest in equities. This is due to the fact that stocks have repeatedly shown to be the most effective way for the typical person to accumulate money over the long run. Over the past forty years, American equities have outperformed bonds, bank deposits, precious metals, and the majority of other investment categories in terms of returns.
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your client has a 7% coupon bond with a duration of 7.5 and a maturity of 12 years. your client is concerned that rates may go up 0.50% in the coming months, and wants to know what impact this would have on her bond. you tell her that the approximate price movement would be
The approximate price movement of your client's 7% coupon bond with a duration of 7.5 and a maturity of 12 years would be a 3.75% decrease in price.
This is due to the fact that bond prices move inversely to interest rates, meaning that when interest rates rise, bond prices fall. When interest rates rise by 0.50%, a bond with a duration of 7.5 would be expected to fall approximately 3.75% in price.
This is due to the fact that duration measures the sensitivity of a bond’s price to changes in interest rates. A duration of 7.5 means that if interest rates increase by 1%, the bond price will decrease by approximately 7.5%. Therefore, in this case, a 0.50% increase in rates would result in a 3.75% decrease in the bond price.
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When a shortage is eliminated, the market:
When a shortage is eliminated, the market price increases will continue until the shortage is resolved and the quantity provided and sought are equal.
The price that an item or service can now be bought or sold for is known as the market price. Supply and demand factors influence how much an asset or service will cost in the market. Market pricing is set at a level where quantity provided and amount requested are equal.
Consumer and economic surplus are determined using the market price. Customer surplus, also referred to as the market price, is the distinction between the greatest price a consumer is prepared to pay and the amount they actually pay for a commodity. Both consumer excess and producer surplus are referred to as economic surpluses. Profit can also refer to producer surplus.
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why would you expect this type of trade protection to be passed into law? the benefits of the trade policy are concentrated among a few, whereas the costs are dispersed throughout the whole population. sugar producers are more likely to be in government positions than the rest of the population. import tariffs, such as in the given example, do not create deadweight loss. the total benefits of the import tariff are larger than the costs. producer surplus is more important than consumer surplus.
The expenses of the trade policy are spread across the entire population, whilst the advantages are concentrated within a small number of people.
Compared to the rest of the population, sugar producers are more likely to hold governmental posts. Import tariffs do not result in deadweight loss, as in the case shown. The total advantages of the import tariff outweigh the whole disadvantages. More significant than consumer surplus is producer surplus.
Government measures that restrict international trade in order to support home sectors are referred to as protectionism. However, they can also be introduced due to safety or quality concerns. Protectionist policies are typically implemented to increase economic activity within a domestic economy.
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What means to integrate all the activities of Organisation?
The degree to which various and interdependent organisational components respond and/or adapt to one another while working toward shared objectives is referred to as organisational integration.
The process of combining smaller parts or information from various subsystems into a single operational unit is known as integration. One of the most important strategic investments a company can make today is integration. Smart businesses are those that are linked. By integrating your business systems, you may get a comprehensive understanding of your customers, your data, and the state of your firm. It enhances your internal operations and provides a better client experience. Because they show that decision-makers can guide employees, integration and coordination are crucial inside an organization.
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What is the correct order of the following SDLC phases?
A process used by the software industry to create software is called the Software Development Life Cycle. The Software Development Life Cycle (SDLC)is another name for it.
The software development life cycle (SDLC) aids the software sector in creating software within the right framework in order to maintain high quality and satisfy consumer expectations.
The creation of software applications is known as using the software development life cycle, which follows accepted business procedures. If you correctly execute these phases in your software development process, you will unquestionably receive fantastic feedback from your clients or it will unquestionably assist you in fulfilling the specifications and maintaining the calibre of the final product.
It is generally understood to consist of the following eight steps: Planning
Planning
Design
Build
Document
Test
Deploy
Maintain
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What did the idealists believe?
The term "idealists" in philosophy refers to metaphysical viewpoints that contend that perception and understanding are inseparable from reality and that reality is a mental construction closely related to ideas.
There are two types of idealist perspectives: subjective idealism, which contends that a material object exists only to the extent that a human being perceives it, and objective idealism, which contends that there is an objective consciousness that predates and exists independently of human consciousness, thereby establishing the object's existence as independent of human perception. According to the philosopher George Berkeley, one must perceive an object's essence. However, idealism "does not concern the existence of objects," according to Immanuel Kant Subjective idealists, commonly referred to as immaterialism, is a theory of experience and the world in which things are nothing more than bundles or groupings of sense data in the perceiver.
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An increase in prepaid insurance is subtracted from net income because
a. it includes the impact of increasing cash and increasing net income.
b. the company paid additional premiums this period in excess of the insurance expense recorded on the income statement.
c. insurance expense decreased net income; however, cash was not paid. The prepaid insurance account was decreased rather than cash.
An increase in prepaid insurance is subtracted from net income because insurance expense decreased net income; however, cash was not paid. The prepaid insurance account was decreased rather than cash.
Prepaid expenses are not initially recorded on an income statement. It is recognised on the account income statement. When paid, prepaid insurance premiums are deductible as long as they do not apply to a period that extends more than 12 months after the end of the taxable year in which they were made. If the insurance contract is for a longer period of time, the deduction must be taken over time. The prepayment is recorded as an asset on the company's balance sheet.
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Why would a purchase order be rejected?
A purchase order can be rejected for various reasons. If the ordered goods or services are not available, the order will be refused. If the price of the order is not correct or if the payment terms do not correspond to the conditions stated in the order, it may also be rejected.
If the supplier does not have sufficient inventory to fulfill the order, or if the order does not meet the supplier's minimum order requirements, it may also be rejected. In addition, if the supplier does not have the necessary certifications or permits to supply the ordered goods or services, the order may be rejected. In short, any discrepancy between the purchase order and the supplier's requirements may result in the rejection of the order.
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the market outlet is an all-equity financed firm with a beta of 1.08 and a cost of equity of 12.58 percent. the risk-free rate of return is 3.6 percent. what discount rate should the firm assign to a new project that has a beta of 1.22?
13.74% discount rate should the firm assign to a new project that has a beta of 1.22.
What is a discount rate?The discount rate is the amount of money that the banking sector and other checkable deposits pay on assets they obtain through the discount portal of their local Fed Reserve.
The information provided is
The market channel is a 100% ownership company with a beta of 1.08
a 12.58 percent equity cost.
3.6% is the uncertainty rate of return.
to a brand-new undertaking with a 1.22 beta
The cost of the equity will be calculated to determine the Market rate:
equity cost = risk free rate + Beta * (market rate- risk-free rate )
12.58 = 3.6 + 1.08 * (Market rate-3.6)
(12.58-3.6) / 1 .08 = Market rate - 3.6
Market rate = (12.58-3.6) / 1.08 + 3.6
= 11.91481481%
The rate at which the discount is offered is at
= 3.6 + 1.22 * (11.91 -3.6)
= 13.74%
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a broker-dealer's customer is attempting to raise money for a new business venture. the customer's registered representative (rr) agrees to assist by referring other clients and, in return, the rr will receive free services from the new business venture. this arrangement is: qid: 3571159 mark for review a normal business practice b acceptable as long as the free services are considered fair and reasonable c acceptable if the firm was provided prior written notice d acceptable if the firm was provided prior written notice and it maintains records of all transactions on the firm's books
In this case the it is Acceptable if the firm was provided prior written notice and it maintains records of all transactions on the firm's books.
A financial organization known as a broker-dealer engages in the trading of securities on behalf of customers but may also trade on its own behalf. A broker-dealer purchases stocks, bonds, and other types of securities. The broker-profit dealer's on the transactions is represented by the dealer's spread, which is the difference between the two prices. A broker-dealer is working as an agent or broker when it executes transactions on behalf of its clients; but, when it trades for its own account, it is acting as a dealer or principal.To know more about broker here
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What must the reader do to analyze the casual relationship in a passage?
When analyzing causal relationships, you must reveal to readers how different parts and sequences interact with each other over time.
You must explain to readers how various elements and sequences communicate with one another across time when examining causal links. You need to pinpoint the precise causes behind its effects or causes rather than just listing the sequence of events in sequential sequence, as we do when explaining a process. The structure of your business should follow the logic of your analysis. Due to the fact that a specific cause can have numerous distinct effects, this is frequently challenging. Similar to how a cause can have several effects.
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Which of the following organization works closely with the drug manufacturers when drug shortages occur?
a. ASHP
b. CMS
c. DEA
d. FDA.
d. FDA.
FDA organization works closely with the drug manufacturers when drug shortages occur.
Any molecule that, when used, alters the physiology or psychology of an organism is considered a drug. Usually, foods and other substances that help with nutritional supplements are separated from drugs. Medicines can be taken orally, inhaled, injected, aspirated, absorbed through the skin with a patch, suppository, or dissolved under the tongue.
In pharmacology, a drug is a chemical compound, usually with a known structure, that, when administered to a living organism, exerts a biological effect. A pharmaceutical is a chemical compound used to treat, cure, prevent or diagnose disease, as well as improve health. It is also known as a drug.
Hence the correct option is D
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(no covid-19 provisions) lamden company paid its employee, trudy, wages of $73,700 in 2021. calculate the fica tax: round your answers to two decimal places. withheld from trudy's wages: social security $fill in the blank 1 medicare $fill in the blank 2 paid by lamden: social security $fill in the blank 3 medicare $fill in the blank 4 total fica tax $fill in the blank 5
James Wilson, the first Finance Minister of the British Indian Government introduced the tax system in India. In 1860, income tax was introduced by James Wilson in India.
How to find the taxes ?The purpose of taxes is to provide the government with funds for spending without inflation. Taxes are used by the government for a variety of purposes, some of which are: Funding of public infrastructure. Development and welfare projects. Defense expenditure.It derives from the Latin taxare which means 'to assess'. Before that, English used the related word 'task', derived from Old French. For a while, 'task' and 'tax' were both in common use, the first requiring labour, the second money. 'Tax' then developed its meaning to imply something wearisome or challenging.The three biggest categories of expenditures are: Major health programs, such as Medicare and Medicaid. Social security. Defense and security.When it comes to taxes, there are two types of taxes in India - Direct and Indirect tax. The direct tax includes income tax, gift tax, capital gain tax, etc while indirect tax includes value-added tax, service tax, Good and Service taxm, customs duty, etc.The amount withheld from Trudy ' s wages is:
= Wages x social security tax rate
= 61, 500 x 6.20%
= $ 3, 813
The amount withheld for Medicare is :
= 61, 500 x 1.45%
= $ 891 .75
This amount will be matched by Lamden so the total is:
= 3, 813 + 3, 813 + 891. 75+ 891 .75
= $ 9, 409 .50
The different taxes to be withheld from Trudy's wages and the amount to be paid by Lamden include:
Withheld from Trudy :
Medicare - $891. 75
Social security - $ 3, 813
Paid by Lamden :
Medicare - $891. 75
Social security - $ 3, 813
The total FICA taxes would be $9, 409.50.
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you decide to form a portfolio with the following amounts invested in the following stocks. what is the beta of the portfolio? stock amount beta expected return bank of america $4,800 0.90 13.5% general motores $1,200 1.10 14.5% jcpenney $3,000 1.25 15.8% seagate $3,000 1.60 18.1%
The beta of the portfolio for the amounts invested is 0.1496.
What is Portfolio beta?Stock beta is only a snapshot of the volatility of a single stock, whereas portfolio beta measures the sensitivity of an overall portfolio to fluctuations in the market. A portfolios is a collection of several stock holdings, hence the algorithms used to determine each stock's beta will differ.
According to the percentages of the investment in the portfolio, the beta of a portfolio is the balanced total of the betas of the individual assets. "A measurement of the volatility, or risk premium, of a securities or a portfolio in contrast to the overall market or a benchmark," how Investopedia defines beta.
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What are the 3 parts of the production process?
3 fundamental building units, Although labour, capital, and natural resources are used in different ways to produce a variety of goods and services, they remain the three primary components of production.
What are the "Big 3" production factors?Pre-production, production, and post-production are the three phases of the programs production process. But there are three vital phases that occur throughout the making of every film: pre-production (planning), production (filming), and post-production (editing, color-grading, and visual effects). Preproduction, which is the planning step of the production, might be the most important because everything else relies on how meticulously the stages of production are expected. Land, labour, and capital are the three categories that the productive factors are typically divided. The first line depicts resources with low supply versus a high demand.
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45- to 54-year-old age bracket. if you are trying to engage this part of your workforce, what are the most important things you can do to engage them? check all that apply. improve the skills and capabilities of your employees enhance your reputation for social responsibility ensure senior managers are genuinely interested in employee well-being provide global work opportunities
All the options are important to engage the 45- to 54-year-old age bracket. Improving the skills and capabilities of your employees is essential in engaging the 45-54 age bracket.
Providing education and training opportunities, such as online courses or seminars, can help this age group stay up-to-date on industry trends and remain competitive. Enhancing your reputation for social responsibility can also help to engage this age group.
By emphasizing environmental sustainability, corporate giving, and other philanthropic efforts, you can demonstrate your commitment to making a positive social impact. Additionally, making sure senior managers are genuinely interested in employee well-being can help to engage this age group.
By providing support and guidance, senior managers can mentor and encourage employees as they progress in their careers. Finally, providing global work opportunities can be a great way to engage this age group.
By allowing employees to work in different countries, they can gain valuable work experience, learn new cultures and languages, and build a network of global contacts.
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The ________ from the sale of a security are the funds actually received from the sale after ________.
The net proceeds from the sale of a security are the funds actually received from the sale after reducing the floatation costs.
Net proceeds are the amount the seller takes home after selling an asset, minus all costs and expenses that have been deducted from the gross proceeds. Capital gains taxes must be paid on the net proceeds of a sale, not the gross proceeds. Flotation costs are costs a company incurs when it issues new stock.
Flotation costs make new equity cost more than existing equity. Flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.
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blue inc is considering a project that will result in initial cash savings of 2.9 million. under what circumstances should the comapny take on the project
The maximum initial cost that the company would be willing to pay for the project is $4,936,051.
How to calculate maximum Initial Cost?
To calculate the maximum initial cost that the company would be willing to pay for the project, we can use the following formula:
Maximum initial cost = (Initial aftertax cash savings / (Discount rate - Growth rate)) x (1 - Debt-equity ratio)
Plugging in the given values, we get:
Maximum initial cost = ($2.9 million / (0.1 + 0.03 - 0.02)) x (1 - 0.75)
= ($2.9 million / 0.11) x 0.25
= $26,363,636 x 0.25
= $6,590,909
How to apply +3 adjustment factor?However, the company is considering a project that is somewhat riskier than usual, so we need to apply an adjustment factor of +3 percent to the cost of capital. The adjusted discount rate is 0.1 + 0.03 = 0.13. Plugging this into the formula above gives us:
Maximum initial cost = ($2.9 million / (0.13 - 0.02)) x (1 - 0.75)
= ($2.9 million / 0.11) x 0.25
= $26,363,636 x 0.25
= $6,590,909
The maximum initial cost that the company would be willing to pay for the project is $6,590,909, rounded to the nearest whole number.
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which of the following statements is true concerning filing a registration application with finra? qid: 3571158 mark for review a it is acceptable not to answer certain questions due to privacy concerns. b it is a violation for an application to be incomplete or misleading. c if a person has already been registered and changes firms, a new application is not required. d all registered persons are required to update their application every two years.
The correct option is B ; It is illegal to submit an application that is incomplete or deceptive. It is a violation of FINRA regulations for any member firm or person connected with a member firm to file an incomplete,
Incorrect, or deceptive application for registration (Form BD for a company and Form U4 for an individual). It is not authorised to refuse to answer questions due to privacy concerns, and if a person moves businesses, she must complete a new application. The application does not need to be updated every two years.
If you work in your firm's securities business, you must be registered with FINRA. This includes salespeople, branch managers, department supervisors, partners, officers, and directors.
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Credits to revenue accounts ultimately result in: a. an increase in liabilities b. an increase in owners' equity c. a decrease in assets d. a decrease in owners' equity
an increase in liabilities The equity of a bank is shown in the liabilities column since any gains are ultimately paid to shareholders as a liability. As a result, the statement is accurate.
What is equity in a bank?
The phrase "bank equity" combines two distinct phrases. A bank is the first, and equity is the second. All financial transactions involving a business, an individual, or both levels of government are carried out through banks. The phrase that may be used to describe the shareholders' ownership position in the firm is equity. Calculating the equity on the balance sheet is simple. Therefore, the liabilities column shows the bank's equity.
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