Answer:
Explanation:
Exchange
Big Centex Corporation issued 2,000 shares of $10 par value common stock at $17 per share. When the transaction is recorded, credits are made to: Group of answer choices Common Stock, $34,000 Cash, $34,000 Common Stock, $20,000 and Paid-In Capital in Excess of Par Value, $14,000 Common Stock, $14,000 and Paid-In Capital in Excess of Par Value, $20,000
Answer:
Big Centex Corporation
When the transaction is recorded, credits are made to:
Common Stock, $20,000 and Paid-In Capital in Excess of Par Value, $14,000
Explanation:
a) Data and Calculations:
Issue of shares = 2,000
Par value of common stock = $10
Issue price = $17 (shares are issued at a premium of $7 per share.)
Common stock value = $20,000 (2,000 * $10)
Paid-in Capital in Excess of Par Value = $14,000 (2,000 * $7)
b) The shares of Big Centex Corporation have been issued at a premium, that is at a value or price which is above the par value of $10. The premium is $7. Therefore, the Common Stock will be credited with $20,000 representing the par value of the issued stock while the Paid-In Capital in Excess of Par Value will be credited with the excess or premium. These separate credits separate the premium per share from the par value of the issued shares.
How much is GDP increased if MPC is .8 and new spending is $90,000?
a. 640,000
b. 520,000
c. 450,000
Answer:
B
Explanation:
250,000
Just clapped some cheeks, couldn't get away from me.
Answer:
1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.1Competitive art used to be in the Olympics.
1Competitive art used to be in the Olympics.
painter artist
Shutterstock
Between 1912 and 1948, the Olympic Games awarded medals in sculpture, music, painting, and architecture, according to Smithsonian magazine. After a heated debate in the post-war years, the competitions were scrapped. John Copley of Britain won one of the final medals: At 73, he would be the oldest medalist in Olympic history if his silver, awarded for his 1948 engraving Polo Players, were still counted.
Explanation:
Brad Banks is confused about the lack of agreement between the cash balance per books and the balance per bank. Please explain to Brad the causes for the lack of agreement and provide an example of each cause.
Answer:
Most of the other issues is the lack of memorandum of understanding seen between financial statement according to the novels as well as the balance and according to the financial institution are almost as following.
Explanation:
Checks issued but not submitted for compensation:In those kinds of case scenarios, the checks are authorized to either the creditors besides compensation, but they've never been submitted to either the finance company. Besides obvious reasons, Brad banks would have authorized a $5,000 check with Tom.
Direct debits are not documented throughout publications by the bank:In such case scenarios, the bank has automatic payments throughout the consideration, and therefore this would not be recognized at the time including its account holders.
The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use 360 days for calculation.)
Answer: Interest charged=$3,780
Explanation:
Interest is the amount of money a borrower pays to its lender for money loaned to him or her at a particular time and rate It can also be money accrued from investments or deposits in financial institutions. It is calculated as
Interest charged = Principal x Rate x Time
= $252,000 x 6% X 90/ 360
=$3,780
The interest charged on the note payable =$3,780
Betty and Ann live on a desert island. With a day's labor, Ann can produce 8 fish or 4 coconuts; Betty can produce 6 fish or 2 coconuts. Ann's opportunity cost of producing 1 coconut is ________ and she should specialize in the production of ________.A) 8 fish per coconut; fishB) 2 fish per coconut; coconutsC) 6 fish per coconut; coconutsD) 0 fish per coconut; coconuts
Answer:
The answer is "option b".
Explanation:
In this question, choice b is correct because, On a deserted beach, Betty and Ann live. Anna could section 80. or 4 nests of one day's job, and Betty can produce 6 or 2 coconuts. That cost of manufacturing 1 coconut is 2 fish per coconut, which Ann must be skilled for coconuts production.
A project with an initial cost of $77,600 is expected to generate annual cash flows of $17,680 for the next 8 years. What is the project's internal rate of return
Answer:
Internal rate of return = 15.68% (Approx)
Explanation:
Given:
Initial cost = $77,600
Annual cash flows = $17,680
Number of year = 8 year
Find:
Internal rate of return
Computation:
77,600 = 17,680/(1+x)¹+17,680/(1+x)²+17,680/(1+x)³+17,680/(1+x)⁴+17,680/(1+x)⁵+17,680/(1+x)⁶+17,680/(1+x)⁷+17,680/(1+x)⁸
Internal rate of return = 15.68% (Approx)
Linke Motors has a beta of 1.30, the T-bill rate is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on CAPM, what is the firm's required return
Answer: 14.95%
Explanation:
The firm required return is;
= Risk free rate + beta * (Market return - RIsk free rate)
= 6.5% + 1.30 * ( 13% - 6.5%)
= 14.95%
It is better to use the estimated future return.
alex pays 1 percent of her gross pay as her insurance premium for the month of January. The insurance premium is part of which deduction from her pay?
A.
disability tax
B.
Social Security tax
C.
voluntary deduction
D.
Medicare tax
E.
federal income tax
Answer:
voluntary deduction
Explanation:
Payroll deductions are either voluntary or involuntary. Involuntary deductions are the mandatory deduction imposed by the government. They include federal and state income tax, social security, and Medicare taxes.
Voluntary deductions comprise requests from employee to employer to withhold some amount for specific functions. Such deductions include loan repayments, insurance contributions, savings schemes, and many others.
Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of:
Answer: Materiality
Explanation:
The concept of materiality states that one can ignore an accounting standard in cases whereby the net impact felt has a little effect on the financial statement of the company.
Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of materiality.
A disadvantage of technology leadership is infrastructure costs. harm to reputation. high competition. lower profit margins. decreased efficiency.
Answer:
a. High infrastructure cost
Explanation:
The disadvantages of technology leadership includes Greater risks, High infrastructural costs, Cost of technology and market development, cost of learning and Cannibalization of existing goods and services of the company. So, higher infrastructural costs is considered to be one of the major disadvantage of technology leadership.
Technology is referred to as the methods or the systems of knowledge that are to be applied in the development and the growth of the economy as a whole. It is the total of all the techniques that applies many skills, methods, and process in every sector for the accomplishment of the objectives or the scientific investigation.
The disadvantage of technology leadership is a. High infrastructure cost
The technologies have both positive and negative impacts. The positive impacts include the growth and the development of the various sectors of the economy. The negative impacts of the technology include the misutilization of it and also it leads to the habit of laziness and carelessness of many of the activities or the tasks.
To know more about the disadvantage of the technology, refer to the link below:
https://brainly.com/question/15056341
Claude received notice that his disability benefits had ended and that he must resume working. What constitutional guarantee is involved?
the due process clause of the Fifth and Fourteenth Amendments
the Preamble of the US Constitution securing "the blessings of liberty"
Answer:
The due process clause of the Fifth and Fourteenth Amendments .
Explanation:
The Due Process Clause establishes that, for a person to be private or limited in relation to their rights, a procedure established by law for this purpose must be followed in advance. Thus, no limitation to the rights of the citizen can be carried out by the simple will or decision of the public administration, but must follow the guidelines established by the Legislative Power and judged as valid by the Judicial Power.
If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases, but not ending inventory
Answer:
Net Income will be undervalued.
Explanation:
In a Free on Board shipping (FOB) the Buyer assumes all risks and rewards of ownership of the goods purchased when the goods have been loaded or passed the shipping rail.
The costs incurred at Free on Board shipping (FOB) must be included in both the Purchases and Ending Inventory. If the cost is not included in ending inventory, this means Cost of Sales will be overvalued and consequently Gross Profit and Net Income will be undervalued.
Last year you paid $24 for a round of golf and $12 to rent a golf cart. This year it cost you $33 to golf and $15 to rent a cart. Based on this simple basket of goods, calculate a price index for this year using last year as the base year. Round up to the nearest whole number.
Answer:
$133.33
Explanation:
In the above , the base price which is meant to the the last year price would be;
T = $24 + $12
T = $36
This year, the total cost, which is C
C = $33 + $15
C = $48
The consumer price index per the above question is calculated as;
Price index = (Current price / Base price period) × 100
Price index = (48 / 36) × 100
Price index = $133.33
If a deposit correctly recorded by the bank for $800 is incorrectly recorded in the company's books for $600, how should this error be treated on the bank reconciliation?
Consider Amanda and Zelda. They both will save $6,000 per year until they retire at age 70. Amanda and Zelda, however, will start saving at different ages. Amanda will start saving when she is 30 years old. Zelda will start saving when she is 50 years old. Assuming the interest rate each year is 8%, how much money will the first year of savings amount to when they retire
Answer:
Total FV= $1,828,910.9
Explanation:
Giving the following information:
Amanda:
Annual deposit= $6,000
Number of periods= 40 years
Interest rate= 8%
Zelda:
Annual deposit= $6,000
Number of periods= 20 years
Interest rate= 8%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Amanda:
FV= {6,000*[(1.08^40) - 1]} / 0.08
FV= $1,554,339.11
Zelda:
FV= {6,000*[(1.08^20) - 1]} / 0.08
FV= $274,571.79
Total FV= $1,828,910.9
Your firm has preferred stock outstanding that pays a current dividend of $3.00 per year and has a current price of $39.50. You anticipate that the economy will grow steadily at a rate of 3.00% per year for the foreseeable future. What is the market required rate of return on your firm's preferred stock?
Answer:
7.59%
Explanation:
the dividend is a perpetuality, so the formula for determining the price is :
Price = dividend / required rate of return
$39.50 = $3 / required rate of return
required rate of return = $3 / $39.50 = 0.0759 = 7.59%
The postponement of a project until conditions are more favorable: I. is a valuable option. II. is referred to as the option to extend. III. could cause a negative net present value project to become a positive net present value project. IV. will generally cause the internal rate of return for a project to decline.
Answer:
The postponement of a project until conditions are more favorable:
III. could cause a negative net present value project to become a positive net present value project.
Explanation:
With the favorable project conditions, the negative NPV will be revised to a positive NPV because the positive conditions will ensure the generation of positive cash inflows. The result is that the project will be assessed as acceptable since the net present value will become positive. Generally, favorable project conditions create outcomes that are positive for the cash flows, thereby generating more positive cash inflows and reducing the impact of cash outflows.
A narcissistic leader would like to influence an employee to take on the job duties that make the leader look best, regardless of whether they reflect badly on the employee, using a process called
Answer:
The appropriate response is "Role making".
Explanation:
Role making explains whether anticipated performance in communication has been generated and altered, a preliminary mechanism where certain responsibilities are defined and content is provided to change as activity continues. That's because an individual's program with the intent would be changed as well as generated by involvement.Higgins Company plans to incur $380,000 of salaries expense if a capital project is implemented. Assuming a 40% tax rate, the salaries should be reflected in the analysis by a:__________.
a) $152,000 inflow.
b) $380.000 outflow.
c) $228,000 inflow.
d) $228,000 outflow.
e) $152,000 outflow.
Answer:
d) $228,000 outflow
Explanation:
Calculation for the amount that the salaries should be reflected in the analysis
Using this formula
Salaries=Salaries expense-(Salaries expense*Tax rate)
Let plug in the formula
Salaries=$380,000-($380,000*40%)
Salaries=$380,000-$152,000
Salaries=$228,000 Outflow
Therefore salaries should be reflected in the analysis by a: $228,000 outflow
Organon Teknina sells inexpensive equipment to detect Escherichia coli, listeria, or salmonella bacteria in food. The company serves not-for-profit institutions that need to regularly check food quality. Organon Teknina would be LEAST likely to sell to:
The options are:
The Montgomery County school system
Cincinnati Children’s Hospital.
Taco Bell
A chain of church-sponsored retirement homes.
American Red Cross emergency shelter kitchen
Answer:
Taco Bell
Explanation:
In the given scenario Organon Teknina sells inexpensive equipment to detect Escherichia coli, listeria, or salmonella bacteria in food. The company serves not-for-profit institutions.
Among the options given only Taco Bell is a for profit organisation, so they are not the primary target of Organon Teknina.
The other options are non profit organisations so they will recieve supply of inexpensive equipment from Organon Teknina.
Taco Bell is a chain of fast food restaurants in Chicago. The parent organisation is Yum brands
A resort hotel is planning to install a computerized inventory system to manage complementary guest items such as soap and shampoo. The daily demand for bars of soap appears to be distributed normally, with mean = 16 and standard deviation = 3. Assume there are 365 days considered for this inventory system. Once an order is placed, it takes seven days before delivery is made. The effort for the staff person to place an order is $10. The annual holding cost of a bar of soap is $0.05. The hotel is concerned about stock-outs of such a basic item and, thus, desires a 99.9% service level.
a. Recommend an order quantity and reorder point for this inventory system.
b. What is the total annual cost for this inventory system?
Answer:
Mean daily demand = 16
SD of daily demand = 3
No of days = 365
LT = 7 days
Cost = 0.1 dollar
Order cost = $10
Holding cost = $0.05
Service level = 99.9%
Optimal order quantity:
Order quantity = √(2*D*S)/H
Order quantity = √(2*16*365*10) / 0.05
Order quantity = √(116800)/0.05
Order quantity = √2336000
Order quantity = 1528.40 units
Reorder level:
Reorder level = dL + zб
Reorder level = 16*7 + 1.55*3
Reorder level = 112 + 4.65
Reorder level = 116.65 units
Total annual cost:
TC = ((16*365)*0.1) + ((16*365)*10 / 1528.40) + (1528.40/2 * 0.05)
TC = 584 + 38.21 + 38.21
TC = $660.42
One advantage to buying a CD is that it can be purchased for different amounts. is high risk but comes with great rewards. can be used for long-term retirement. is high risk but backed by the government.
Answer: it can be purchased for different amounts.
Explanation:
A Certificate of Deposit is a financial services product normally offered by banks where a person agrees to leave a certain amount of money with the bank for a stated period of time.
These products give the bank a chance to invest in projects knowing that the cash will not be withdrawn haphazardly and so they offer higher amounts of interest than most other products.
One advantage is that there is no set amount for a CD and it can be purchased for different amounts.
Answer:
A or can be purchased for different amounts.
Explanation:
Tripple-Crown Inc. will start selling 10-year bonds today. The bonds have semiannual coupon payments, an annual coupon rate of 10%, and a par value of $1,000. The yield to maturity (YTM) for this bond is expected to be 8%. What is the price of the bond today?
Answer:
$1,135.90
Explanation:
The Price of the Bond today is its Present Value (PV) alternatively known as the current price.
This can be calculated using a Financial Calculator by imputing values for the following parameters :
N = 10 × 2 = 20
P/YR = 2
PMT = ($1,000 × 10%) ÷ 2 = $50
FV = $1,000
I = 8 %
PV = ?
The PV will be $1,135.90
Therefore, the price of the bond today is $1,135.90
For the following statement/questions match the assertion that best matches: When auditing the following accounts identify what auditors are primarily concerned with:
a. Revune
b. Assests
c. Liabilities
d. Expenses
1. Overstatments
2. Understatments
Answer:
When auditing the following accounts, auditors are primarily concerned with:
Accounts Assertions
a. Revenue Overstatements
b. Assets Overstatements
c. Liabilities Understatements
d. Expenses Understatements
Explanation:
Auditors are generally concerned about these assertions when auditing financial statements and their related disclosures: accurate recording, completeness, cut-off, existence, rights and obligations, and valuation. For revenue and assets, they want to ensure that these are not overstated. Their overstatement will increase the reported profits of the entity, which is a kind of cooking the books to please analysts. They are also interested in ensuring that liabilities and expenses are not understated for the same purpose.
In each of the following independent cases, the company closes its books on December 31.
a. Shamrock Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.
b. Titania Co. sells $400,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest).
Required:
Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.
Answer:
Part a
Payments are done at the beginning of the month therefore, set the financial calculator to the BEG mode.
PV = $534,000
PMT = ($534,000 × 8%) ÷ 2 = $21,360
P/YR = 2
N = 5
YTM = 12 %
FV= $534,000
Journal Entries through December 31, 2021
2020
March 1
Debit : Investment in Bonds $534,000
Credit : Cash $534,000
Recognition of Investment in Bonds
March 1
Debit : Cash $21,360
Debit : Investment in Bonds $21,360
Subsequent measurement of bonds at amortized cost
September 1
Debit : Cash $21,360
Debit : Investment in Bonds $9,398
Credit : Effective Interest Income $30,758
Subsequent measurement of bonds at amortized cost
2021
March 1
Debit : Cash $21,360
Debit : Investment in Bonds $9,962
Credit : Effective Interest Income $31,322
Subsequent measurement of bonds at amortized cost
September 1
Debit : Cash $21,360
Debit : Investment in Bonds $10,560
Credit : Effective Interest Income $31,920
Subsequent measurement of bonds at amortized cost
Part b
Payments are done at the beginning of the month therefore, set the financial calculator to the BEG mode.
PV = $400,000
PMT = ($400,000 × 12%) ÷ 2 = $24,000
P/YR = 2
N = 8
YTM = 10%
FV = $400,000
Bond amortization schedule using the effective-interest method
Date Cashflow Effective Int Capital Repmts Diff Gross CAmt
2017
1 June -$400,000 $400,000
1 June $24,000 $0 $0 -$24,000 $376,000
1 Dec $24,000 $18,800 $0 -$5,200 $370,800
2018
1 June $24,000 $18,540 $0 -$5,460 $365,340
1 Oct $126,000 $18,267 $0 - 107,733 $257,607
If the Federal Reserve printed too little money, money's relative price would _____________________ and the money price of goods would _________________________.
a. all; fall
b. rise; fall
c. fall; rise
d. rise; rise
Answer:
b. rise; fall
Explanation:
If the Federal Reserve printed too little money, there would be a leftward shift of the supply curve. This would lead to a rise in money's relative price. This would lead to a rise in the value of money as less money would be needed to buy goods and services. So, the money price of goods would fall
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Supporting direct labor $6 per direct labor
Machine processing $2 per machine - hour
Machine setups $45 per setup
Production orders $160 per order
Shipments $115 per shipment
Product sustaining $775 per product
Activity data have been supplied for the following two products:
Total Expected Activity
J78 W52
Direct labor hours 1,000 30
Machine hours 2,600 20
Machine setups 19 3
Production orders 19 3
Shipments 38 3
Product sustaining 3 3
Required:
Determine the total overhead cost that would be assigned to each of the products.
Answer:
Larner Corporation
J78 W52
Total overhead cost $21,790 $3,505
Explanation:
a) Data and Calculations:
Activity Cost Pool Activity Rates
Supporting direct labor $6 per direct labor
Machine processing $2 per machine - hour
Machine setups $45 per setup
Production orders $160 per order
Shipments $115 per shipment
Product sustaining $775 per product
Total Expected Activity
J78 W52
Direct labor hours 1,000 30
Machine hours 2,600 20
Machine setups 19 3
Production orders 19 3
Shipments 38 3
Product sustaining 3 3
Overhead cost Activity rates J78 W52
Supporting direct labor $6 per direct labor $6,000 $180
Machine processing $2 per machine - hour 5,200 40
Machine setups $45 per setup 855 135
Production orders $160 per order 3,040 480
Shipments $115 per shipment 4,370 345
Product sustaining $775 per product 2,325 2,325
Total overhead cost $21,790 $3,505
The present value of a perpetuity of 6,500 paid at the end of each year plus the present value of a perpetuity of 8,500 paid at the end of every 5 years is equal to the present value of an annuity of k paid at the end of each year for 25 years. Interest is 6% convertible quarterly. Calculate k.
Answer:
$10,340
Explanation:
The computation of k is shown below;
Rate per quarter = 6% ÷ 4 = 1.5%
In the case when perpetuity paid every year, the effective rate is
= (1 + 1.5%)^4 - 1
= 6.136%
Now Effective rate in the case when perpetuity paid every 5 years
= (1 + 1.5%)^(4 × 5) - 1
= 34.68%
Now
The present value of Both perpetuities = $6,500 ÷ 6.13635506249994% + $8,500 ÷ 34.6855006550052%
= $130,431.99
Now
annuity =k
Number of Periods=25
effective rate = 6.13635506249994%
Annuity k =PV ÷ ((1 - (1 + r)^-n) ÷ r
= $130,431.99 ÷ ((1-(1 + 6.13635506249994%)^-25) ÷ 6.13635506249994%
= $10,335.84
= $10,340
2. How do fund raising for corporate organization differ from non- corporate organization
Answer:
see below
Explanation:
A corporation is considered a legal person. It is a form of business ownership that is separate from its owners. A Non-corporation business has not gone through the incorporation process. As such, the business and the owner as considered as one entity. A partnership and sole proprietorship are examples of non-corporations.
Raising funds for a corporation is much easier than for a non-corporation. A corporation raises funds through borrowing or by issuing shares to the public or existing shareholders in a private corporation. The money generated from issuing shares can be used to expand the business or meet outstanding debts.
A non-corporation relies on the owner's to fund business activities. If the owners don't have a good credit history, the business may face challenges obtaining loans.
