ryngaert inc. recently issued noncallable bonds that mature in 15 years. they have a par value of $1,000 and an annual coupon of 5.7%. if the current market interest rate is 7.7%, at what price should the bonds sell? a.$891.68 b.$825.63 c.$924.70 d.$652.25 e.$1,015.52

Answers

Answer 1

The correct option is B. $825.63. The price of a bond is the present value of its future cash flows, which includes both the coupon payments and the final principal repayment at maturity.

To calculate the price of the bond, we need to discount each cash flow using the market interest rate, which is 7.7% in this case. We can use the following formula to calculate the bond price:

Bond price = PV(coupon payments) + PV(final principal repayment)

PV(coupon payments) = Coupon payment x [1 - 1/(1+r)^n]/where r is the market interest rate, n is the number of coupon payments, and PV is the present value.

In this case, the bond has a coupon rate of 5.7%, which means it pays $57 in annual interest (=$1,000 x 5.7%). The bond will make 15 coupon payments over the life of the bond.

Using the formula, we can calculate the present value of the coupon payments as follows:

PV(coupon payments) = $57 x [1 - 1/(1+0.077)^15]/0.077

PV(coupon payments) = $657.91

Next, we need to calculate the present value of the final principal repayment. Since the bond is noncallable, it will be redeemed at its face value of $1,000 at maturity. The present value of this amount can be calculated as follows:

PV(final principal repayment) = $1,000/(1+0.077)^15

PV(final principal repayment) = $293.72

Therefore, the total bond price is the sum of the present values of the coupon payments and the final principal repayment:

Bond price = $657.91 + $293.72

Bond price = $951.63

Therefore, the bond should sell for $825.63 (which is less than the face value of $1,000), because the current market interest rate of 7.7% is higher than the bond's coupon rate of 5.7%.

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Related Questions

walmart corp. has the right to manufacture and market a product, redesign its stores, and acquire other businesses because it operates in a:

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Walmart Corp. has the right to manufacture and market a product, redesign its stores, and acquire other businesses because it operates in a free-market economy. A free-market economy is one that is based on supply and demand, with minimal government interference or regulation.

In this type of economy, companies are free to set prices, compete for customers, and produce whatever goods or services they wish.

Companies like Walmart have the freedom to decide what products to make and market, what changes to make to their stores, and whether to purchase other businesses.

This freedom and competition promotes economic growth and gives companies the incentive to innovate and succeed.

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suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425). the interest rate on this loan is about:

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The interest rate on this loan is about 15%.

Determine the interest rate

If you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made, giving the borrower only $425, then the interest rate on this loan is about 15%.

This can be calculated by taking the interest of $75 and dividing it by the original loan amount of $500.

Mathematically, this looks like:

Interest rate = Interest / Principal x 100

So, for this example:

Interest rate = $75 / $500 x 100 = 15%

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Which of the following can help a firm extend its competitive advantage? better expectations of future resource valueintellectual property protectionpath dependence

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"Better expectations of future resource value", "intellectual property protection", and "path dependence" can all help a firm extend its competitive advantage.

The Explanation to Each

A firm that has a better understanding of the future value of its resources can invest in them more effectively and use them to create a sustainable competitive advantage. By identifying and investing in resources that are likely to become more valuable in the future, the firm can gain an edge over its competitors.

Intellectual property such as patents, trademarks, and copyrights can give a firm exclusive rights to a product or service, thereby creating a competitive advantage. By protecting their intellectual property, firms can prevent competitors from imitating their products or services, which can help to maintain market share and profitability.

A firm that has a path-dependent advantage has built up unique capabilities over time that are difficult for competitors to replicate. This advantage can come from a variety of sources, such as unique organizational culture, specialized knowledge, or relationships with suppliers or customers. By leveraging their path-dependent advantage, firms can create barriers to entry and extend their competitive advantage.

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generally, goals and objectives serve to a. all of the above b. align effort c. gauge and report performance d. improve performance

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The goals and objectives of an organization serve to align effort, gauge and report performance, and improve performance. In other words, they help create direction, measure progress, and foster growth. The correct Option is C) gauge and report performance

A goal is a broad statement of what the organization is trying to achieve in the long-term. It provides an overall focus for everyone in the organization, and serves to align all of the effort. For example, the goal of a company might be to become the leading supplier of a certain product.

Objectives are the specific, measurable steps that need to be taken in order to achieve the goals. They should include a timeline, a target number, or a measurable milestone. For example, the objective might be to increase the sales of the product by 20% over the next 12 months.

Once objectives have been set, performance can be gauged and reported. Reports are often prepared that track progress against the objectives. This allows the organization to understand if it is on track to achieve its goal.

Finally, performance can be improved by setting realistic objectives and measuring performance against those objectives. If an organization is not performing as expected, then changes can be made to improve the performance. This might involve making changes to the objectives or the strategies being used.


In summary, goals and objectives serve to align effort, gauge and report performance, and improve performance.

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narrower interpretation of the term expense: group of answer choices disregards deductions from revenue. groups expenses into categories. considers only expenses that are operating expenses. all of these are correct.

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A narrower interpretation of the term expense is option C- considers only expenses that are operating expenses.

An operating expense is defined as an expense incurred in the day-to-day activities of an organization and is included in the cost of running a business. This could include wages, rent, utilities, insurance, and any other expenses related to the company’s operations.

Disregarding deductions from revenue means ignoring the costs of doing business. Grouping expenses into categories is just a way of organizing expenses for budgeting and tracking.  

Therefore, the correct answer to the question would be option c. considers only expenses that are operating expenses.

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in terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product?

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In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for luxury goods. What is brand loyalty? Brand loyalty refers to a consumer's affinity for a specific brand over others in the same product category.

Brand loyalty is the result of the product's perceived superiority, innovation, and perceived benefits.

The term brand loyalty is used to describe the degree of customer attachment to a brand, and it is one of the most crucial factors in a company's success.

Luxury goods can be understood as the goods that are rare, exclusive, expensive, and have a high status quotient. In general, consumers of luxury goods are very brand-loyal and are not inclined to accept substitutes.

A typical example of luxury goods is high-end watches, perfumes, and accessories, such as Gucci or Rolex watches. Thus, in terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for luxury goods. Consumers may exhibit brand loyalty because they appreciate the brand's quality, aesthetics, service, or performance.

Another factor that contributes to brand loyalty is the emotional bond that consumers have with the brand. This emotional bond is the result of the consumer's association with the brand and the perception of the brand as an extension of themselves or their self-image. Brand loyalty can also be influenced by the consumer's social circle, family members, and peers.

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trumbrella corp. is a pharmaceuticals company. one of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. when trumbrella initiates its claims processing, it should first:

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When Trumbrella Corp. initiates its claims processing for the reported on-the-job injury caused by a slippery factory floor that broke the employee's back, it should first provide the employee with immediate medical assistance to ensure their health and well-being.

Once the employee's immediate medical needs have been taken care of, Trumbrella should document the incident thoroughly, including the time, date, location, and circumstances of the injury. Trumbrella should then follow the appropriate legal and regulatory requirements for reporting the incident to the relevant authorities and notifying its insurance provider. Finally, Trumbrella should investigate the root cause of the incident and take measures to prevent similar accidents from happening in the future.

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in _______________, resources are arranged sequentially according to the steps required to create a product.

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In a process layout, resources are arranged sequentially according to the steps required to create a product.

A process layout is a type of manufacturing layout where similar processes are grouped together. This type of layout is typically used in situations where there is a wide variety of products being produced, and each product requires a unique set of processes. In a process layout, the machines and equipment needed to complete each step of the production process are arranged in a sequence that follows the order in which the products are made.

The advantage of a process layout is that it allows for greater flexibility in production. Because each process is separate and distinct, it is easy to switch from one product to another as needed. However, this type of layout can also be less efficient than other types of layouts, as products may have to be moved from one area to another as they progress through the production process.

Additionally, because each process requires specialized equipment, there may be duplication of equipment across multiple processes.

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based on the following customer purchase data, which customer would have a higher lifetime value to the retailer? customer feb. march april may june july marcia $10 $10 $10 $10 $10 $10 jan $10 $20 $30 $30 $20 $10 cindy $40 $40 alice $150

Answers

Alice would have the highest lifetime value to the retailer with a total purchase amount of $150.

To determine which customer would have a higher lifetime value to the retailer, we need to calculate the total amount spent by each customer over the given period.

Marcia: $10 x 6 = $60

Jan: $10 + $20 + $30 + $30 + $20 + $10 = $120

Cindy: $40 x 2 = $80

Alice: $150

A retailer is a business that sells goods or services directly to consumers for personal or a household use. Retailers can operate in the physical stores, online, or through a combination of both, and may specialize in a particular product or offer a wide range of the products to meet the consumer demand.

the complete question is:

Explain the concept of customer lifetime value (LTV). Assume that a small retail store has gathered the following customer purchase data for four of its customers. The store is using an LTV approach to evaluate the customers. Which of the four customers would have the highest lifetime value to the retailer? Explain your selection of that customer.

Customers Feb  March April May        June    July

Marcia         $10           $10 $10           $10 $10         $10

Jan                 $10           $20 $30            $40 $20          $10

Cindy          $40                    $40  

Alice                           $150

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a homebuyer is taking out a loan to purchase a home in florida, which is a lien theory state. the lender has them sign a promissory note and what other document?

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The homebuyer is required to sign a promissory note and a mortgage document or a deed of trust to secure the loan in a lien theory state like Florida, where the lender holds a lien on the property until the loan is fully paid off.

In a lien theory state, the mortgage serves as a lien on the property, allowing the lender to foreclose on the property if the borrower fails to repay the loan. The promissory note outlines the terms and conditions of the loan, including the interest rate, repayment schedule, and consequences of default.

The mortgage or deed of trust, on the other hand, establishes the lender's security interest in the property and outlines the procedures for foreclosure if the borrower defaults. Together, the promissory note and mortgage create a legal obligation between the borrower and lender that protects the interests of both parties.

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rising prices make people feel worse off even if their real income has not fallen. this is an example of

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The given statement "rising prices make people feel worse off even if their real income has not fallen" is an example of inflation.

What is inflation?

Inflation refers to the rate at which the general level of prices for goods and services is increasing and, subsequently, purchasing power is falling down.

It is a persistent increase in the general price level of goods and services in an economy over a period of time. When the prices of goods and services rise, it reduces the purchasing power of money, causing consumers to feel less affluent and less well off even if their real income has not decreased.

Inflationary pressure can occur in an economy if there is an increase in the supply of money or credit relative to the total amount of goods and services available, or if the cost of inputs for goods and services increases.

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companies that employ shift workers have improved productivity and job satisfaction by group of answer choices scheduling only phase delays desynchronizing the zeitgebers none of these scheduling only phase advances accelerating the zeitgebers

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Companies that employ shift workers can improve productivity and job satisfaction by "scheduling only phase delays". The correct option is A.

The productivity and lower job satisfaction. One way to mitigate these negative effects is to schedule shifts that align with the natural circadian rhythm.

This means delaying the start of the work shift slightly each day until it aligns with the desired work schedule. This can result in improved sleep quality, better alertness during work hours, and increased job satisfaction.

Desynchronizing the zeitgebers (external cues) or scheduling only phase advances (moving the work schedule forward each day) may lead to further disruption of the circadian rhythm and have negative effects on productivity and job satisfaction. Therefore, among the options provided, "scheduling only phase delays" is the most appropriate choice.

Therefore, the correct answer will be option(A)

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a firm that pursues a differentiation strategy will often find that the added expense of offering new or unique product features offsets the increase in perceived value, and profit margins begin to erode. this underscores the importance of control for firms pursuing a differentiation strategy. true or false

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True, a firm that pursues a differentiation strategy will often find that the added expense of offering new or unique product features offsets the increase in perceived value, and profit margins begin to erode.

Why is the statement correct?

This underscores the importance of control for firms pursuing a differentiation strategy. To maintain profitability, firms need to carefully manage costs and continuously innovate to keep their products or services distinct and valuable to consumers.

The differentiation strategy is indeed a tactic used by organizations to attract clients by offering them something distinctively different from what their rivals could be selling in the market.

Increasing competitive advantage is the key goal of implementing a strategy of differentiation. As previously said, the most common form of differentiation strategy is product differentiation.

When a business chooses this course of action, it succeeds greatly since its rivals are unable to match the standard.

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social security, health and unemployment insurance, and welfare for poor families comprise the .

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Social security, health insurance, unemployment insurance, and welfare for poor families comprise the social safety net.

The social safety net is a system of public programs designed to protect individuals and families from economic hardships such as poverty, unemployment, and disability.

Social security, health insurance, and unemployment insurance are social programs designed to help provide economic security by providing income, health care coverage, and job security.

Welfare is a public assistance program designed to help those in poverty by providing financial aid to families in need.

All of these programs work together to ensure that people in need have access to the resources they need to stay afloat and avoid long-term poverty.

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what records classified and summarized transactional data? immutable blockchain ledger distributed computing

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The immutable blockchain ledger distributed computing is a record that classifies and summarizes transactional data.

This ledger is made up of several blocks that are distributed across various nodes in a network. Each block contains a hash that is linked to the previous block, and the data is encrypted to ensure data integrity. The ledger is distributed, meaning that it is hosted on a network of computers, and it is immutable, meaning that it cannot be altered or corrupted once it is recorded. This ensures that the data stored in the ledger is accurate and secure.

The ledger stores transactional data in a way that is organized and secure. It records transactions in chronological order, and it can track changes in real time. Additionally, the ledger can be used to verify transactions and prevent fraud. By using the ledger, companies can ensure that their data is secure, accurate, and accessible.

In summary, the immutable blockchain ledger distributed computing is a record that classifies and summarizes transactional data. It is a secure, distributed ledger that stores data in an organized manner, and it is immutable, meaning that it cannot be altered or corrupted. It is used to store and verify transactions and prevent fraud, and it ensures that the data stored in the ledger is accurate and secure.

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7.13. can an identifying relationship of a weak entity type be of a degree greater than two? give examples to illustrate your answer.

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Yes, the degree of an identifying relationship of a weak entity type can be greater than two.

A weak entity type is an entity type that does not have its own primary key, and must instead use a combination of attributes from its related entities. This combination of attributes forms its identifying relationship.

For example, consider the relationship between a school and its students. The school has its own primary key, but the student does not. The student can be identified by a combination of attributes from both the school and the student, such as the school's name, the student's name, and the student's birth date. This combination of attributes creates an identifying relationship of degree 3 (school, student name, birth date).

Another example is the relationship between a hospital and its patients. Here, the hospital has its own primary key, but the patient does not. The patient can be identified by a combination of attributes from both the hospital and the patient, such as the hospital's name, the patient's name, and the patient's social security number. This combination of attributes creates an identifying relationship of degree 3 (hospital, patient name, social security number).

In conclusion, an identifying relationship of a weak entity type can be of a degree greater than two, as demonstrated by the examples of a school and its students, and a hospital and its patients.

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instructing the bank to automatically move a fixed amount of money to your savings account every month is a proven strategy to reaching financial freedom and growing your wealth. true false

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The answer to your question is true

what should a registered representative emphasize when making investment reccomendations to a customer with 25000 to invest for a childs future college education

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The registered representative should emphasize "capital growth" as the primary objective when making investment recommendations for a customer with $25,000 to invest for a child's future college education.

This approach focuses on increasing the value of the investment over time to potentially generate higher returns.

When investing for a child's future college education, it is important to focus on capital growth as the primary objective. This means selecting investments that have the potential to increase in value over time and generate higher returns, rather than prioritizing income or stability.

By emphasizing capital growth, the registered representative can help the customer build a larger college fund over time, potentially enabling the child to attend a better school or pursue additional educational opportunities. However, it is also important to consider the customer's risk tolerance and investment goals when making recommendations, and to carefully monitor the performance of the investments over time.

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an appraiser, in valuing the addition of an all-tile swimming pool that cost $43,000 six months ago, has attributed an increase in value to the property of $25,000. he has arrived at this figure under the principle of

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The question asks about an appraiser valuing the addition of an all-tile swimming pool to a property. The appraiser has attributed an increase in value of $25,000 to the property, which cost $43,000 six months ago. This figure has been determined based on the principle of "substitution value".


In the conditions given, the Substitution value is the estimated cost of replacing the improvement on the property with one of similar age, condition, quality, and utility. This figure is arrived at by calculating the amount of money it would cost to replace the existing improvement with a similar one.

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a portfolio consists of $14,600 in stock m and $21,900 invested in stock n. the expected return on these stocks is 8.60 percent and 12.20 percent, respectively. what is the expected return on the portfolio?

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The expected return on the portfolio is 10.86%.

This is calculated by taking the weighted average of the expected return of stock M and stock N, which is calculated by multiplying the expected return of each stock by the amount invested and then summing the products.

In this case, $14,600 invested in stock M has an expected return of 8.60%, and $21,900 invested in stock N has an expected return of 12.20%. Therefore, the expected return on the portfolio is: (14,600 * 8.60%) + (21,900 * 12.20%) = 10.86%.

This shows that 10.86% is the expected return on the portfolio.

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during a swot analysis, sweet treats identifies a growing number of local businesses now offering bakery items to customers. this finding would be characterized as a(n) group of answer choices strength. weakness. opportunity. threat. advantage.

Answers

In order to draw customers and maintain its position as a market leader, Sweet Treats can take this chance to enhance its product lineup or marketing tactics.

entails a corporate level strategy whereby a firm expands its activities and enters a new industry that uses, distributes, or sells the company's products.

Expanding a business' operations into new or unrelated products, services, markets, or industries is referred to as business diversification. Diversification is frequently done to increase new revenue streams while lowering overall business risk.

Which of these is a step towards establishing an effective supply by becoming an input provider?

Entering the market of input suppliers is a step towards the construction of an effective supply.

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in order to determine whether or not the economy is entering the recession phase, economic indicators such as output and employment must be falling for a period of at least six months or longer.

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To determine if the economy is entering the recession phase, you should look at economic indicators such as output and employment. If these indicators are falling for a period of at least six months or longer, it is likely that the economy is entering a recession.

Here's a step-by-step explanation:
1. Monitor economic indicators: Keep track of output (GDP) and employment figures regularly. These data are usually released by government agencies or research institutions.
2. Identify trends: Analyze the data to identify trends. Look for a consistent decline in output and employment levels over time.
3. Duration of decline: Check if the decline in output and employment has lasted for at least six months. A shorter period of decline might not necessarily indicate a recession.
4. Assess other factors: Consider other economic indicators such as consumer spending, business investment, and inflation rates to support your analysis.
5. Draw conclusions: If output and employment have been falling for at least six months or longer, and other indicators support this trend, it is likely that the economy is entering a recession phase.

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true or false? elasticity refers to the law in economics that a higher price will lead to a lower quantity demanded.

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True. Elasticity refers to the degree to which the quantity demanded or supplied of a good or service changes in response to a change in price.

Elasticity is a concept in economics that measures the degree to which the quantity demanded or supplied of a good or service changes in response to a change in price. When demand for a good or service is elastic, this means that consumers are highly responsive to changes in price, and a small increase in price will lead to a significant decrease in quantity demanded. In contrast, when demand is inelastic, consumers are less responsive to changes in price, and a higher price will not significantly impact the quantity demanded.

The concept of elasticity is important for businesses and policymakers because it can help to predict how changes in price will affect demand and revenue. By understanding the elasticity of demand for a particular product or service, a business can determine the optimal pricing strategy to maximize profits. Similarly, policymakers can use elasticity to determine the impact of taxes or subsidies on consumer behavior and adjust policies accordingly. Overall, elasticity is a fundamental concept in economics that helps to explain the relationship between price and demand, and can be used to inform a range of business and policy decisions.

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Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,700 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the net method of accounting for cash discounts.
Required:
1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on July 23, 2021.
2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on August 15, 2021.

Answers

Journal entries to record the sale on July 15 and payment on July 23, 2021:

July 15, 2021:

Accounts Receivable $85,000 (1,700 tires x $50 per tire)

Sales $85,000

July 23, 2021:

Cash $83,300 (net amount received: $85,000 - [$85,000 x 2%])

Sales Discount $1,700 ($85,000 x 2%)

Accounts Receivable $85,000

Journal entries to record the sale on July 15 and payment on August 15, 2021:

July 15, 2021:

Accounts Receivable $85,000 (1,700 tires x $50 per tire)

Sales $85,000

August 15, 2021:

Cash $85,000

Accounts Receivable $85,000

Muhammad is considering investing some of his hard-earned cash by opening a certificate of deposit.
Muhammad is disappointed to learn that If he invests
$500, he will likely only earn an additional
$9 a year from today. So, he decides to invest his funds somewhere that will generate more income for
him. Which of the following did Muhammad find unsatisfactory about the certificate of deposit?
- The risk of the investment was too high.
- The return on his investment was too low.
- The liquidity of the investment was too high.
- The liquidity of the investment was too low.

Answers

Answer:

here are all the answers to this quick check

Explanation:

1. an individual purchases stock with the intent to sell it later at a higher price

2. The return on his investment was too low.

3. higher returns and higher liquidity than other investments

4. Elena could purchase multiple assets from multiple sources.

5. She might miss a better investment opportunity because real estate is not particularly liquid.

I just took it and got 5/5 hope this helps :)

pls mark brainiest

george wants to buy pfizer stock, but he does not want to pay more than $32.50 per share. what kind of order should george place with his broker?

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To buy Pfizer stock, George should place a limit order with his broker with a price of $32.50 per share. A limit order is a type of stock market order that is used when the trader wants to buy or sell a stock at a specified price or better, and it is one of the most commonly used types of orders in the stock market.

Therefore, George should place a limit order with his broker with a price of $32.50 per share to buy Pfizer stock. A limit order specifies a price and ensures that the order will be executed at the specified price or better, thereby providing traders with greater control over their trades.

A limit order is an instruction to a broker to buy or sell a security at a specified price or better, and it can be used to ensure that a trader gets the best possible price for a trade.

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what is the book value of a company vehicle that cost $62,000, has a salvage value of $8,000 and an expected life of six years. after five years, what is the book value?

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The book value of a company vehicle that cost $62,000, has a salvage value of $8,000, and an expected life of six years after five years is $20,000.

The book value of an asset is calculated as the difference between the asset's original cost and its accumulated depreciation. Expected life is an estimate of the amount of time that the asset will be able to generate revenue for the business. It is calculated based on the average lifespan of similar assets or on an estimate of the lifespan of the asset based on its expected usage. The salvage value is used to determine the total depreciation expense for the asset.

The book value of a company vehicle = $62,000

Salvage value = $8,000,

Expected life = six years

After five years, the book value of a company vehicle that cost $62,000, has a salvage value of $8,000, and an expected life of six years is $20,000.

The depreciation expense for the vehicle over the first five years

= $42,000 ($62,000 - $8,000

= $54,000, $54,000 ÷ 6 years

= $9,000

Depreciation expense per year x 5 years = $45,000

Total depreciation expense over 5 years)

=$62,000 original cost - $45,000 accumulated depreciation

= $17,000 book value at the end of year 5

$17,000 book value + $3,000 depreciation expense for year 6 = $20,000 book value at the end of year 6.

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which of the following is a false statement about assigning work based on comparative advantage? workers will be specialists and not generalists. the person with the lowest opportunity cost at a task should perform it. assign the person who is fastest or best at a task to do that task. the person who has absolute advantage in the task will sometimes be assigned to do it.

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False statement about assigning work based on comparative advantage is assign the person who is fastest or best at a task to do that task.The false statement about assigning work based on comparative advantage is "assign the person who is fastest or best at a task to do that task.

"Comparative advantage is an economic theory that advocates the production of a good by a country, group, or person at a lower cost than another.The statement "the person with the lowest opportunity cost at a task should perform it" is a false statement about assigning work based on comparative advantage. Comparative advantage refers to the ability of a person or country to produce a particular good or service at a lower cost than another person or country, even if the other person or country has an absolute advantage in producing that good or service.

Therefore, the person or country with the lowest opportunity cost should be assigned the task. It is also known as the relative advantage. The principle of comparative advantage is critical in economics since it may be used to explain the logic of international trade.

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when a monopolist increases output by one unit, total revenue multiple choice question. increases by less than price. increases by more than price. increases by the amount of the price. does not change.

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When a monopolist increases output by one unit, total revenue increases by more than price.

When a monopolist increases output by one unit, total revenue increases by more than the price of that one unit because, as the output increases, the marginal revenue increases.

Marginal revenue is the additional revenue generated from an additional unit of output, and it is typically higher than the price of that one unit. In other words, the monopolist can charge a higher price due to their market control, which leads to a greater total revenue when they produce more output.

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when decision makers increase their commitment to a project despite negative information about it, they are experiencing which type of bias?

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The type of bias experienced by decision makers when they increase their commitment to a project despite negative information about it is called the "sunk cost bias".

This bias occurs when decision makers make choices based on past investments, rather than on the potential return of their future investments.

Essentially, this bias occurs when decision makers are committed to a project regardless of the costs that they have already invested, because they do not want to believe that their past investments were a waste.

This bias causes decision makers to continue investing in a project even when it is no longer beneficial or rational to do so. In order to avoid this bias, decision makers must be aware of their investment costs and their potential returns when making decisions.

They should also be willing to abandon projects when they are no longer beneficial and not let their past investments cloud their judgment.

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