#1 Your retirement portfolio comprises 200 shares of the S&P 500 fund (SPY) and 100 shares of iShares Barclays Aggregate Bond Fund (AGG). The price of SPY is $134 and that of AGG is $110. If you expect the return on SPY to be 10% in the next year and the return on AGG to be 8%, what is the expected return for your retirement portfolio?

Answer:

Explanation:

a. On the basis of the conversion ratio and the price of the common shares, what is the current conversion value of each preferred share?

Conversion Value = No of Common Shares × Market Price Per Share

= 5 × $20

= $100

b. If the preferred shares are selling at $9696 each, should an investor convert the preferred shares to common shares?

Total Value of preferred Share = Share Price + Dividend Payment Per Share

= $9696 + $10

= $ 9706

Total Value of 5 Common Stock = ((Market Price of 1 Share + Dividend per Share) × 5)

= ((20 + 1) × 5)

= $ 105

No. The investor should not convert the preferred shares to common shares. This is because, the value of one preferred share exceeds the value of the converted common shares by $9601. Thus, based on the value of the converted and non-converted preferred share, the non-converted preferred share is more valuable than the converted one. Thus, the investor should not convert the preferred shares.

c. What factors might cause an investor not to convert from preferred to common stock?

If the value of the converted shares is lower than that of the original preferred share, it makes the conversion devalue an investor's overall investment value.

Additionally, if the investor is unwilling to have residual claim on profits. This is because common stockholders receive their dividends after debt and preference shareholders get their claims. Therefore, the preferred shareholder could see it best to retain their holdings as Preferred and not Common.

Final answer:

This answer explains the calculation of current conversion value, advises on whether to convert preferred shares, and discusses factors affecting an investor's decision not to convert.

Explanation:

a. Current Conversion Value: The current conversion value of each preferred share can be calculated by multiplying the price of the common shares by the conversion ratio. In this case, $20 (price of common shares) x 5 (conversion ratio) = $100.

b. Convert or Not: If the preferred shares are selling at $96.96 each and the conversion value is $100, the investor should not convert as they would lose $3.04 per share.

c. Reasons against Conversion: Factors that might deter an investor from converting from preferred to common stock include potential loss due to conversion price being higher than the current price, unfavorable market conditions, or preference for stable dividend income.

Explanation:Convertible bonds. Are corporate bonds that can be converted by the holder into the common stock of the issuing company.

Callable bonds. Called provision option held by the company to repurchase the bond at specific price. Is also called redeemable bonds, jump up etc. While most callable bonds are coupon bonds.

There are no big differences between the two, convertible bonds are often callable, eg corporate bonds can be convertible/callable or the both.

A callable bond is a bond that can be called back in by the issuer prior to maturity. For example, a 10 year bond issued today could be called back in 8 years.

A convertible bond is a bond that converts into the equity of the underlying company. For example, the bond of XYZ company can be converted into the stock of XYZ company under certain conditions.

A convertible bond has the advantage in that there is upside when the owner converts into stock.

Answer:

Total capital gain will be $1360800

Explanation:

We have given EPS = $4.20

Total number of shares = 2000000

So total Net Income = EPS x No. of shares = $4.20 x 2000000 = $8,400,000

Dividend = 60% x 8,400,000 = $5040000

25% shareholder participated in dividend reinvestment

So Capital raised = 27% x $5040000 = $1360800

So total capital gain will be $1360800

Answer:

Option (D) is correct.

Explanation:

Given that,

Cost = Beginning inventory + Purchases + Freight in

        = 30,000 + 175,000 + 2,500

        = $207,500

Retail = Beginning inventory + Purchases + Net markups

         = 45,000 + 240,000 + 9,500

         = $294,500

Cost to retail ratio:

= $207,500 ÷ $294,500

= 0.7046

Therefore, the cost to retail ratio is 0.7046.

Option A , Technical Reviews should be tailored to assess development maturity and risk and to determine readiness to proceed to the next phase.

Explanation:

By funding from the United States EPS has planned and executed the regional collaborative effort with CA Trade Agreement (CAFTA-DR) clients for Central America and the Dominican Republic to create environmental impact evaluation rules for three fields identified as priorities of our regional allies: energy, mining, and hospitality.

EPA has also coordinated the regional collaborative project. Agency for Global health.

Volume 1 provides guidance which follows globally understand elements of environmental impact assessment through the use of a glossary and references. Each EIA Technical Review Guideline consists of these components.

For various types of mining, energy and/or tourism projects for the use by t, Volume 1, Part 2 includes examples of Terms of Reference linked to Volumes 1 and 2.

Technical Reviews in the acquisition environment should be tailored to assess development maturity and risk and are essential for ensuring technical accuracy and proceeding to the next phase. They are not a waste of valuable time but rather a necessary component for quality control and informed decision-making in product development.

The use of Technical Reviews in the current acquisition environment is critical for assessing development maturity and risk, and determining readiness to proceed to the next phase. Technical Reviews should be considered as a crucial tool for quality control and validation that ensures the use of appropriate technology, and aids in effective project and requirements management. These reviews should be tailored to match the characteristics of the specific project, such as its complexity, length, and cost, rather than following a one-size-fits-all approach or being disregarded as a waste of time. They play a pivotal role not only in solving program problems but also in validating technical solutions and contributing to the knowledge base of stakeholders involved in product development.

Considering the rapid pace of product development, specifications may not always keep up, which makes subject matter experts' reviews even more important. These experts can review working models or prototypes and provide critical feedback to ensure technical accuracy and completeness. Moreover, by involving technical writers and experts in product meetings, live demonstrations, and feasibility testing, a comprehensive understanding is fostered, allowing for informed decision-making. Therefore, it is clear that the evaluations of Technical Reviews should be thoughtfully planned and executed to be both useful and practical, aligning with the unique demands of each project.

Answer: 1 Bilateral trade agreement, 2. Foreign direct investment , 3. Deregulation

Explanation:

Bilateral trade agreement : This can be defined as the agreement between two countries to give each other a free access to each other market. This kind of agreement create a level playing field for the citizens of both countries to compete favourably in each other market without any form of discrimination or restriction whatsoever. The agreement is reached in order to eliminate tariff on goods coming from each other countries or to lower the tariff on goods coming from each other countries.

Foreign direct investment : This is the free movement of money from one country to another for the purpose of investment in business ventures or in properties in that country. It is the ownership of business or investment in one country by an individual or corporate body based in another country. For instance when a foreigner owns an asset such as land or building in another country or business venture.

Deregulation : This is the economic policy by which a government of a nation decides to remove the existing control or any form of regulation in the market with a view to further promote competition in the market. It applies to when a government allows a privately own business to compete in the same market with the government owned business. In this case each company's will compete favourably for its own share of the market which are previously reserved only for the government owned business to operate.

Answer:

$27,005.62

Explanation:

Data provided in the question:

Down payment made = 18%

Monthly payment = $500

Interest rate, i = 4% per year compounded monthly

Time = 4 years

Now,

Present value of annuity = Monthly payment × [tex]\left[ \frac{1-(1+i)^{-n}}{i} \right][/tex]

n = number of periods

Here,

number of periods , n = 4 × 12 = 48 months

Interest rate per period, i = 0.04 ÷ 12 = 0.003333

on substituting the values

Present value of annuity = $500 × [tex]\left[ \frac{1-(1+0.003333)^{-48}}{ 0.003333 } \right][/tex]

or

Present value of annuity = $500 ×  [tex]\left[ \frac{1 - 1.003333^{-48}}{ 0.003333} \right] [/tex]

or

Present value of annuity = $500 × [tex]\left[ \frac{1 - 0.852384}{ 0.003333} \right][/tex]

or

Present value of annuity = $500 × 44.289229

or

Present value of annuity = $22,144.61

also,

Present value of annuity is (100% - Down payment) i.e (100% - 18%) 82% of the original price

Therefore,

Original price of the boat =  $22,144.61 ÷ 82%

= $22,144.61 ÷ 0.82

= $27,005.62

The original price of Craig's boat is approximately $26,065.21.

Craig's problem can be solved using the formula for an amortizing loan, which is expressed as:

PV = PMT / [(1 - (1 + r)^-n) / r]

, where PV is the loan amount, PMT is the monthly payment, r is the monthly interest rate, and n is the number of payments. Since Craig's monthly payment was $500 and the interest rate was 4% compounded monthly (hence, r=4/12/100=0.00333) for 4 years, or 48 months (hence, n=48). Substituting these values into the formula, we get the loan amount for the boat that Craig financed:

PV = $500 / [(1 - (1 + 0.00333)^-48) / 0.00333]

= $21,375.67. Remember, Craig made an 18% down payment, so the original price of the boat is the loan amount divided by 82% (100% - 18%) = $21,375.67 / 0.82 = $26,065.21.

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Answer:

so value of the mistake is $311685.71

Explanation:

given data

present value = $1,200,000

time = 6 year

discount rate = 18%

discount rate = 8%

to find out

What is the dollar value of the mistake

solution

we get here present value that is express as for both rate that is

present value = [tex]\frac{FV}{(1+r)^t}[/tex]

put here value

present value =  [tex]\frac{1200000}{(1+0.18)^6}[/tex]

present value 1 = $444517.85

and

present value =  [tex]\frac{1200000}{(1+0.08)^6}[/tex]

present value 2 = $756203.55

so

difference is $756203.55 - $444517.85

difference is = $311685.71

so value of the mistake is $311685.71

Answer:

Explanation:

The probablility of having to pay a death claim on the policy is

[tex]\frac{34}{10,000,000}[/tex]

insurance companys loss  = $1 - $100,000 = -$99,999

Consider the outcome in which there is no death claim on the policy.

1 − Probability of death claim = Probability of no death claim

1 - [tex]\frac{34}{10,000,000}  = 0.9999966[/tex]

If the insurance company does not need to pay a death​ claim, its gain​ is:

Profit − Cost = Gain or Loss

The expected value is calculated by multiplying the gain or loss for each possible outcome by its​ probability, and then adding these products together.

-$99,999 [tex]\frac{34}{10,000,000}[/tex]+$1(0.9999966) = $0.66

Over the long​ run, the insurance company can expect to make ​$0.66 on each policy that it sells.

Final answer:

The expected value for each policy sold by the insurance company is $1,000,000.4, meaning that the insurance company can make approximately $1,000,000.4 for each policy sold.

Explanation:

To determine the expected value, we need to multiply the probability of each outcome by its associated value and sum them up. In this case, we have two outcomes: death and no death.

Since 34 out of 10 million people die, the probability of death is 34/10,000,000. The value associated with death is $100,000. The probability of no death is 1 - (34/10,000,000). The value associated with no death is $0.

The expected value is calculated as follows:

Expected Value = (Probability of death * Value of death) + (Probability of no death * Value of no death)

= (34/10,000,000 * $100,000) + (1 - (34/10,000,000) * $0)

= $3.4 + $999,997

= $1,000,000.4

Therefore, the expected value for each policy sold by the insurance company is $1,000,000.4. This means that over the long run, the insurance company can make approximately $1,000,000.4 for each policy sold.

Answer:

The answer is D. All of the above are plausible

Explanation:

A. Opportunity costs are relatively low is reasonable because as football game is taking place, most of the local people will go to the field to enjoy the field rather than spending their time at local shops/restaurants. Moreover, there are not many people from other towns visiting these facilities because of far distance.

B. is reasonable because it is high school football not professional football so the expenses spent on watching the game is low.

C. is is plausible because these towns are quite remote so watching their young neighbors/relatives playing may be one of the few entertainment choices available to them in weekend.

=> So, the answer is D.

Final answer:

High school football's popularity in small West Texas towns can be attributed to low opportunity costs, minimal impact on household budgets, and a lack of entertainment substitutes.

Explanation:

The extreme popularity of high school football in small West Texas towns can be economically explained by considering a few key factors. First, the opportunity costs for attending these games are relatively low since there are fewer entertainment options available, making football games a primary social event. Also, attending these games typically represents only a small share of household budgets, particularly in these smaller towns where there may be fewer demands on discretionary spending and where entertainment options are limited. Moreover, the lack of entertainment substitutes plays a significant role. With limited access to the broader entertainment amenities found in larger cities, local high school football games become a focal point for the community, providing entertainment as well as a sense of local pride and community identity. Thus, one could argue that all the factors mentioned contribute to the high school football's popularity, making 'D. All of the above are plausible' the most comprehensive answer.

Answer:

(a).

Dr Cash                                                      218,000

Cr Common Stock                                    25,000

Cr Paid-in capital - Common stock          193,000

( to record the issuance of 5,000 share at $45 with cost of $7,000)

(b)

Dr Land appraised expenses            46,000

Cr Common stock                              5,000

Cr Paid-in capital - Common stock   41,000

( to record the issuance of shares in exchange for land appraisal services at market value of shares issuance)

Explanation:

(a)

Cash receipt is 5,000 x 45 - 7,000 = $218,000; Common stock increase by Par value x stock issuance = 5 x 5,000 = $25,000; Paid-in capital increase by (45-5) x 5,000 - 7,000 = $193,000.

(b)

Common stock increase by par value x stock issuance = 1,000 x 5 = $5,000; Appraisal Expenses is increased at the market value of the shares issuance = 1,000 x 46 = $46,000; Paid-in capital account increase by the amount calculated as ( Share price - Par value) x share issuance = (46-5) x 1,000 = $41,000.

In item 1, the journal entry to record the issuance of 5,000 shares of stock at $45 per share would include a debit to Cash and a credit to both Common Stock and Additional Paid-in Capital. In item 2, the journal entry to record the issuance of 1,000 shares of stock for land appraised at $50,000 would include a debit to Land and a credit to both Common Stock and Additional Paid-in Capital.

(a) Prepare the journal entry to record item 1:

Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000.

DR Cash $220,000 ($45 x 5,000)

CR Common Stock $25,000 ($5 x 5,000)

CR Additional Paid-in Capital $198,000 ([$45 - $5] x 5,000 - $7,000)

(b) Prepare the journal entry to record item 2:

Issued 1,000 shares of stock for land appraised at $50,000.

DR Land $50,000

CR Common Stock $5,000

CR Additional Paid-in Capital $45,000

The effect on operating income be if the special order could be accepted without affecting normal​ sales:(b) $ 43,750 ​increase.

Sales             $187,500

(25,000×$ 7.50)                    

Less Variable manufacturing  ($143,750)

(25,000× $ 5.75)

Net Income/(loss)                     $43,750

($187,500-$143,750)

Inconclusion the effect on operating income be if the special order could be accepted without affecting normal​ sales:(b) $ 43,750 ​increase.

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Upon accepting a special order of 25,000 pairs of slippers at $7.50 per pair, The Cozy Company would see an increase in operating income of $43,750. This is calculated by subtracting the additional variable costs from the special order revenue and noting that fixed costs and marketing costs do not change.

The question from The Cozy Company relates to evaluating the impact of accepting a special order on operating income. The company sells slippers for $10 per pair with variable manufacturing costs of $5.75 per pair and allocated fixed manufacturing costs of $1.75 per pair. For a special order of 25,000 pairs at $7.50 a pair, we need to compare the additional revenue from the special order against the additional variable costs of producing the slippers, since fixed costs remain unchanged and no marketing costs are incurred.

Special Order Revenue: 25,000 pairs x $7.50/pair = $187,500

Additional Variable Costs: 25,000 pairs x $5.75/pair = $143,750

Additional Operating Income: $187,500 - $143,750 = $43,750

Therefore, the effect on operating income if the special order is accepted would be an increase of $43,750.

Answer: each service is interdependent and interrelated.

Explanation:

An interdependent and interrelated service means the service cannot be separated, one cannot be said to have been concluded without concluding the other, invariably they will be accounted for as a single performance obligation.

The product cannot be distinct for a distinct product means the performance can be separated and it must be determinable for this an obligatory attribute of a contract.

A distinct performance obligation means it's not a multiple performance obligation.

Answer:

C. price exceeds the minimum of average total cost.

Explanation:

In a monopolistic competitive market, the firm makes profit when MC (Marginal Cost) equals MR (Marginal Revenue).  Price also equal average total cost.

Answer:

Option E.

Explanation:

In free trade, a country with a comparative advantage in a good produces that good in the long-term. Therefore, if these people are working in an industry in which it has a higher opportunity cost i.e. it does not have a comparative advantage; they will eventually see job loss or fall in income or both. On other hand, when they purchase goods which has lower opportunity costs in foreign, they get access to these at a lower price and can purchase a higher quantity. So, these people are both harmed and benefitted by free trade.

Answer:

The correct answer is B

Explanation:

Classified balance sheet is the one which provides or presents the information regarding the assets, shareholder's equity and the liabilities of the entity which is further segregated or classified into the sub- categories of the accounts.

The most common is the Long-term investments and Current Assets.

So, it organizes the assets and the liabilities into vital sub- groups which provide more information.

Answer:

d. earned capital and contributed capital.

Explanation:

The statement of stockholder's equity comprises common stock, preferred stock , and retained earnings.

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

The contributed capital comprises of common stock and the preferred stock whereas the earned capital includes retained earnings

Stockholders' equity is classified into two major categories: contributed capital and retained earnings, corresponding to the money from share investments and reinvested profits, respectively.

Stockholders' equity is typically divided into two major categories: contributed capital and retained earnings. Therefore, the correct answer is letter d: earned capital and contributed capital. Contributed capital represents the money that shareholders invest directly in the company by purchasing shares of stock, which can be described as a firm's claim on partial ownership divided into individual portions. Retained earnings, on the other hand, are the cumulative profits that a corporation has earned and reinvested in the business rather than paid out as dividends to shareholders. Retained earnings can be accumulated through several means, including early-stage investors, reinvesting profits, borrowing through banks or bonds, and selling stock in the form of an initial public offering (IPO).

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Answer:D. Almora agriculture and manufacturing sectors have become less competitive in the world market.

Explanation:

In increased standard of living means the populace can afford more essential commodities, an expansionary economy means more investment which has lead to more employment. An inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used in exchange for the few available goods and services.

In the above scenario the huge revenue from the oil boom as surpassed the agriculture and manufacturing outputs and this has lead to increase in price and hitherto a fall in demand and which have made them less competitive.

The increase in employment in the oil industry and expansion of the construction industry are positive development. The surplus budget means goverments expected revenue is greater than is expenditures, this will invariably increase savings and threafter investment.

Answer:

The budget for promoting the brand

= 7% x $2.8 million

= $0.196 million

Explanation:

Since the budget for promoting the brand is estimated at 7% of sales, thus, the budget for promoting the brand is 7% x $2.8 million.

Final answer:

To calculate the advertising budget for Kimberly-Clark's brand of toilet paper using the percentage of sales method, multiply 7% by the estimated sales of $2.8 million, resulting in an advertising budget of $196,000 for the year.

Explanation:

The question at hand requires applying the percentage of sales method to calculate the advertising budget for a specific product within the Kimberly-Clark Company. With historical data indicating that the company spends 7% of its sales on advertising for their brand of toilet paper, and projected sales of $2.8 million for the upcoming year, the calculation is straightforward. By multiplying 7% (or 0.07 in decimal form) by the projected sales amount of $2.8 million, we can determine the advertising budget allocated for the brand.

Calculating this gives us: 0.07 x $2,800,000 = $196,000. Therefore, the budget for promoting the Kimberly-Clark brand of toilet paper will be $196,000 for the coming year.

Answer:

See explanation section

Explanation:

Req. A: Situation 1

Mar 18   Available for sale of stocks of MF  Debit   $283,400

                                                Cash               Credit             $283,400

Note: As Bonita acquired 10% of Martinez shares at $13, total cash has to be paid to Martinez Fashion = (218,000*10%) × $13 = 21,800 shares × $13 = $283,400.

Jun 30       Cash                                             Debit   $7,130

                                    Dividend Revenue    Credit                $7,130

Note: As Martinez declared $71,300 to all stockholders, Bonita will receive 10% of those dividends as they acquired 10% of the total stocks. The cash received from the MF is = $71,300 × 10% = $7,130.

Securities Fair Value

Dec 31        Adjustment                      Debit     $21,800

                        Unrealized holding gain (loss)- Equity    Credit     $21,800

Note: As the market price of the share increased to $14-$13 = $1, Bonita would gain from the increased market price. Total gain = $1 × (218,000 shares × 10%) = $21,800.

Req. B Situation 2

Investment in Seles

Jan 1          Common stock of Seles Corp.     Debit      $77,520

                                       Cash                         Credit             $77,520

Note: As Windsor, Inc. obtained 30% of Martinez shares at $8, total cash has to be paid to Martinez Fashion = (32,300*30%) × $8 = 9,690 shares × $8 = $77,520.

Jun 15        Cash                                           Debit         $10,560

                            Dividend Revenue          Credit             $10,560

Note: As Seles declared $32,300 to all stockholders, Windsor, Inc. will receive 30% of those dividends as they acquired 30% of the total stocks. The cash received from the MF is = $32,300 × 30% = $10,560.

                  Investment in Seles

Dec 31        Cash                   Debit          $24,600

                                    Revenue     Credit                       $24,600

Note: As Seles reported a net income of $82,000, due to acquiring 30% of Seles stock, Windsor, Inc. will receive 30% of its net income. The revenue is = $82,000 × 30% = $24,600.

Answer:

b. $40.

Explanation:

We select the lower of each of the following for reporting purposes.

Cost = $45

Replacement cost = $43

Neat realizable value = Selling price - disposal and completion costs

NRV = 50 - 10 = $40

We use lower of the values to take into account obsolete inventory or deterioration of inventory and as such the lowest of NRV is used for recording purposes.

Hope that helps.

Answer:

correct option is B. $15,000

Explanation:

given data

contributed cash = $120,000

Fair Value of land = $160,000

originally paid = $90,000

Sale value of land = $190,000

to find out

how much of the gain from sale of land should be credited to Griffin for financial accounting purposes

solution

gain on sale is here as

gain on sale = Sale value of land - Fair Value of land -

Gain on sale of land = $190,000 - $160,000

Gain on sale of land = $30000

split the $30000 between the equal partners for a total gain credited to Griffin

total gain credited to Griffin = $15000

so correct option is B. $15,000

Answer:

110 million. Point U.

Explanation:

This economic system is referred to as a depression and it is a downturn that has occurred over a long period of time. It is a sustained downturn that is more worse than a recession. This normally affects the economic activities. In the economic system above, the employment decreased to 10 million while the economic system is at Point U.

Answer: (B) Proximal and distal goals

Explanation:

  According to the given question, the proximal and the distal goals are basically monitor by the manager for the purpose of tracking the overall progress in terms of goal achievement.

The main objective of the proximal goal is that it is the short term goal with some specific and the detailed information. It motivate for increase in the productivity and receiving the feedback.

On the other hand, the distal goals is refers as the long term goals and it takes longer time for attain its specific tasks. The main benefit of the distal goals is that it helps in boost the self confidence.

Therefore, Option (B) is correct.

Answer:

Please see find the answer in the explanation!

Explanation:

Situation 1:

First entry:

Bridgeport acquired 10% of shares of Martinez Fashion, the double entry would reduce the cash of Bridgeport and increase the asset, see as follows:

Shares Dr $239200 (18400× $13)

           Cash  Cr $239200

On June 30, Martinez declared and paid $69400 cash to all stockholders, Bridgeport will be entitled to 10% of the declared and paid dividend, therefore, dividend income will have to be recorded as follows:

Cash/bank Dr $6940

            Dividend Income Cr $6940

Situation 2:

Indigo Inc obtained significant influence over Seles corporation (making her an Associate). In a group situation, an associate is equity accounted and is recorded as an investment in the statement of financial position and is also entitled to the profits with the proportion of their ownership. First entry would be to record the associate as an investment, see as follows:

Investment in Associate Dr $84780

                                      Bank/Cash Cr $84780

On june 15 Seles declared and paid cash dividend, Indigo Inc will be entitled to 30% of the dividend, see as follows:

Dividend income= $39100× 30%

Dividend income= $11730

Entry:

Cash/Bank Dr $11730

      Dividend income Cr $11730

Unlike Bridgeport Corporation, Indigo Inc will be entitled to 30% of the reported net income as well. The entry is as follows;

Cash/Bank Dr $ 25500 ($85000× 30%)

                 Income Cr $ 25500

Answer:

The loss will be $4,150.

Explanation:

As the investor sold S&P 500 futures contract, the investor has taken a short position in S&P 500 indexes.

At time of maturity, because the S&P index is higher than the future price ( 2,505 >2,422), the Investor has made a loss from the future contract.

The loss from the future contract is calculated as:

( S&P index at future maturity - S&P future price ) x contract multiplier = ( 2,422 - 2,505) x 50 = $(4,150)

Thus, the loss is $4,150.

Answer:

$5,000

Explanation:

If these are death benefit funds then it must be noted that tax is not applicable on the lump sum amount of death benefit but the interests paid on the amount left on deposit with the insurer is taxable. In simple terms, if dividends are left on deposit to earn interest then this interest is taxable!

Interest rate= 5%

Amount= $100,000

Tax= 0.05x100,000

Tax= $5,000

Answer:

The correct answer is (C)

Explanation:

If a firm in a monopolistic market is earning an economic profit, it allows other new firms producing the same product to enter the market. So, in long-run new firms will enter the market and create a competitive environment. The firms will keep on entering until every firm achieves normal profits, and till the economic profit is zero.

Answer:

Common Stock $80,000 (debit)

Cash. $80,000 (credit)

Shares of an American Airline AAL

Explanation:

Imagined buying AAL shares

In a journal entry, the student imagined buying stock in an innovative tech company after researching using reputable sources and investment tools. They learned the value of portfolio diversification and utilized an online brokerage for the purchase, gaining insights into market dynamics and investment strategies.

Today, I made the decision to buy shares of a company known for its innovative technology and potential for growth. After conducting comprehensive research through reliable sources such as Fortune, The Wall Street Journal, and Business Week, along with investment tools like Moody's and Standard & Poor's, I settled on purchasing the stock of XYZ tech company. I believe that the company's recent developments and expansion plans indicate a bright future, aligning with my strategy to invest in firms with products that cater to the future needs of consumers.

In the process, I learned the importance of diversifying a portfolio to mitigate risk. To purchase the stock, I utilized an online brokerage platform which allowed me to execute trades swiftly. While reflecting on my investment, I considered how fluctuations in stock prices can compare to those in housing markets, and the different types of risk associated with each investment.

Through this hypothetical exercise, I gained valuable insights into the dynamics of the stock market and the analytical skills needed to make informed decisions. My goal throughout this process has been to understand how to build a robust portfolio that thrives over time, taking into account various economic factors and market trends. This exploratory phase has been enriching, and it certainly adds a practical layer to my theoretical understanding of finance and investments.

Answer:

D:  None of the options

Explanation:

All the three options are not true with regards to OIP