This financial option is offered by a university for its degree course that lasts exactly three years.
The students will repay in instalments after the end of the course. The instalments are determined as follows:
• No payments are made until three years after the end of the course.
• Over the following 15 years, students pay the university RM325 at the beginning of each quarter.
• After 15 years of payments, the quarterly instalments are increased to RM375 at the beginning of each quarter.
• After a further 15 years of payments, the quarterly instalments are increased to RM450 at the beginning of each quarter for a further 15-year period after which there are no more payments.
The rate of interest is at 3% per annum effective.
Calculate the present value.
In: Finance
Preferred dividends Acura Labs Inc. has an outstanding issue of preferred stock with a par value of $6060 and an 2020% annual dividend. a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter? b. If the preferred stock is noncumulative and the board of directors has passed the preferred dividend for the last 44 quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid to common stockholders? c. If the preferred stock is cumulative and the board of directors has passed the preferred dividend for the last 44 quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid to common stockholders?
In: Finance
Acura Labs has an outstanding issue of preferred stock with a par value of $40 and an 10% annual dividend.
a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter?
b. If the preferred stock is noncumulative and the board of directors has passed the preferred dividend for the last two quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid to common stockholders.
c. If the preferred stock is cumulative and the board of directors has passed the preferred dividend for the last two quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid to common stockholders?
In: Finance
Fife Company prepares quarterly reports following generally accepted accounting principles. For each of the items below, state whether the method is in conformity with generally accepted accounting principles with an explanation of your answer and appropriate justification:
Fife takes a physical inventory at year-end for annual financial statements. Inventory and cost of sales reported in quarterly reports are based on estimated gross profit rates. Fife does have reliable perpetual inventory records.
The company records income tax expense for each quarter based on the expected tax rate for the year rather the tax rate based on the quarter’s income.
The company had a loss on a discontinued operation in the third quarter. The company plans to recognize one-half of the loss in each of the third and fourth quarters.
The company reports inventory at lower of cost or market. At the end of the second quarter, the market value was below cost. Fife did not report a loss for the quarter since they expected the year-end market value to exceed year-end cost.
In: Accounting
Exercise 2-13 Traditional and Contribution Format Income Statements [LO2-6]
|
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: |
| Amount | ||
| Total sales revenue | $ | 1,408,000 |
| Selling price per pair of skis | $ | 440 |
| Variable selling expense per pair of skis | $ | 48 |
| Variable administrative expense per pair of skis | $ | 19 |
| Total fixed selling expense | $ | 160,000 |
| Total fixed administrative expense | $ | 125,000 |
| Beginning merchandise inventory | $ | 75,000 |
| Ending merchandise inventory | $ | 115,000 |
| Merchandise purchases | $ | 310,000 |
| Required: | |
| 1. |
Prepare a traditional income statement for the quarter ended March 31. |
| 2. |
Prepare a contribution format income statement for the quarter ended March 31. |
| 3. |
What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter? (Round your final answer to nearest whole dollar amount.) |
In: Accounting
Imagine that the US economy suddenly falls into the recession and the GDP is forecasted to decrease by $300mil. We know that the propensity to consume (c1) is 0.6. The government wants to fight the recession and it is considering either a massive spending boost or a new tax reform
Question: By how much would the government spending need to increase to prevent the $300mil decrease in output?
(Report your answer in millions. For example, if your answer is $550mil, write down "550".)
In: Economics
a) Using the AD-AS framework discussed in class, demonstrate the impacts of spending on infrastructure and a tax cut on output and inflation in the shortrun.
b) Also explain the likely impact of spending on infrastructure on output in the long-run and show this on your AS-AD diagram.
c) Explain (using your own words) what would happen to unemployment and output in the short run if job support payments (both Jobseeker and Jobkeeper) were switched off.
In: Economics
Question 6 Unsaved Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 150 and the aggregate consumption function is given by C = 250 + 0.75Y. And suppose that, if at full employment, the economy would produce an output and income of 3200 By how much would the government need to raise spending (G) to bring the economy to full employment? (round your answer to the nearest whole value
In: Economics
In: Economics
Please answer all the questions. Thank you
In: Economics