BUSINESS COLLEGE

During the first five years of operations, Red Raider consulting reports net income and pays dividends as follows.Year Net Income Dividends Retained Earnings1 $1200 $500 2 1700 500 3 2100 1000 4 3200 1000 5 4400 1000 Calculate the balance of retained earnings at the end of each year.

Answers

Answer 1
Answer:

Answer:

Please refer to the below for the retained earnings at each year end

Explanation:

Retained earnings refers to the earnings available to a business enterprise after the deduction or payment of dividend.

Retained earnings = Beginning balance + Net income for the year - Dividends paid

Year 1

Retained earnings = 0 + 1,200 - 500

= $700

Year 2

Retained earnings = 700 + 1700 - 500

= $1,900

Year 3

Retained earnings = 1,900 + 2,100 - 1,000

= $3,000

Year 4

Retained earnings = 3,000 + 3,200 - 1,000

= $5,200

Year 5

Retained earnings = 5,200 + 4,400 - 1,000

= $8,600

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Which of these statements about corporate bonds is correct?

Answers

Answer:

Option A is the right answer.

Explanation:

Bonds seems to be debt security during which the lender is obliged to pay compensation at regular time intervals as well as pay the money back the balance of the shareholder at intellectual ability.

  • Option B: The raising of new bonds diminishes underlying ownership within the company. Incorrect issuance of new equities diminishes the company's current ownership.
  • Option C: Debenture bonds attached leverage on the assets guaranteed. Incorrect debentures represent short term loans.
  • Option D: Bonds focuses on providing funding for equities. Incorrect since debt funding is provided by Bonds.

So that alternative A would be the appropriate choice.

Bonds are like IOUS with a promise to repay the amount borrowed, with interest, on a certain date. Thus, option A is correct.

Bonds appear to be a type of financial instrument where the lender is required to provide periodical payments of compensation as well as to reimburse the shareholder for their remaining amount at the investor's intellectual discretion.

An Iou-like financial obligation is a bond. By purchasing corporate bonds, investors are making a loan to the corporation issuing the connection.  Bonds usually provide investors with a fixed rate of interest that is paid over a specified period of time at periodic times. In general, bonds are a less risky investment. Therefore, option A is correct.

Learn more about Bonds, here:

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Gabriele enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of 1000, and selling for 962. At this price, this price, the bonds yield 6.6 percent.What must the coupon rate be on the bonds?

Answers

Answer:

The answer is =5.91%

Explanation:

N(Number of periods) = 7 years

I/Y(Yield to maturity) = 6.6percent

PV(present value or market price) = $962

PMT( coupon payment) = ?

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 7; I/Y = 6.6; PV = -962; FV= $1,000; CPT PMT= $59.05

Therefore, the coupon rate of the bond is of the bond is $59.05/1000

=5.91%

Bonds issued by the coleman manufacturing company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. the bonds are currently selling for $940. they have 10 years remaining to maturity. the annual interest payment is 10 percent ($100). compute the yield to maturity.

Answers

The yield to maturity would be a computable value, yes.

2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the economy than primary markets." Do you agree with this argument? Why, or why not?

Answers

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

Suppose that Spain and Germany both produce jeans and shoes. Spain's opportunity cost of producing a pair of shoes is 3 pairs of jeans while Germany's opportunity cost of producing a pair of shoes is 11 pairs of jeans.By comparing the opportunity cost of producing shoes in the two countries, you can tell that ------- has a comparative advantage in the production of shoes and ------ has a comparative advantage in the production of jeans.
Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as long as it receives more than ------ of jeans for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than--------- of shoes for each pair of jeans it exports to Spain.
Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of jeans) would allow both Germany and Spain to gain from trade?
4 pairs of jeans per pair of shoes, 1 pair of jeans per pair of shoes, 6 pairs of jeans per pair of shoes, 2 pairs of jeans per pair of shoes

Answers

Answer:

By comparing the opportunity cost of producing shoes in the two countries, you can tell that SPAIN has a comparative advantage in the production of shoes and GERMANY has a comparative advantage in the production of jeans.

Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as long as it receives more than 3 PAIRS of jeans for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than ¹/₁₁ PAIR of shoes for each pair of jeans it exports to Spain.

Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of jeans) would allow both Germany and Spain to gain from trade?

  • 4 pairs of jeans per pair of shoes
  • 6 pairs of jeans per pair of shoes

Explanation:

Opportunity costs refer to the extra costs or benefits lost resulting from choosing one investment or activity over another alternative. In this case, if Spain specializes in the production of shoes, it will not produce jeans anymore. The opposite would happen to Germany.

The company that manufactures molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. this launch of a new product to attract a new market for molson's products is an illustration of a _____ strategy.

Answers

The company is using a viral illusion strategy.
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