Questions
Write an Empirical Model for Addressing the Issues of economic and social cost of opioid in...

Write an Empirical Model for Addressing the Issues of economic and social cost of opioid in US. Write 3-4 paragraphs please

In: Economics

what is the amount of double declining balance depreciation for year five if the cost of...

what is the amount of double declining balance depreciation for year five if the cost of an asset is $75,000 do useful life is five years in a salvage value is $4000

In: Accounting

THE ANSWER IS NOT -3,790,792.61 Watson, Inc., is an all-equity firm. The cost of the company’s...

THE ANSWER IS NOT -3,790,792.61

Watson, Inc., is an all-equity firm. The cost of the company’s equity is currently 13 percent, and the risk-free rate is 4.1 percent. The company is currently considering a project that will cost $11.58 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.26 million.

  

If the company has a tax rate of 40 percent, what is the net present value of the project?

In: Finance

Account for debt investment reported at amortized cost—effective-interest method.

 

Account for debt investment reported at amortized cost—effective-interest method.

Strand Corp. purchased $300,000 of five-year, 4% Hydrocor bonds at 99 on June 30, 2017. Strand Corp. purchased the bonds to earn interest. Interest is paid semi-annually each June 30 and December 31. The semi-annual amortization amount for the first interest period is $273 determined using the effective-interest method. At December 31, 2017, the bonds were trading at 98. Prepare the required journal entries on June 30 and December 31, 2017.    Question 2)

 

Account for debt investment reported at amortized cost—effective-interest method.

On July 1, 2017, Moon Corporation, a private company, purchased $400,000 of six-year, 6% Star Corporation bonds for $420,000. The bonds pay interest each June 30. The bonds were purchased to earn interest and the market interest rate at the time of purchase was 5%. The company uses the effective-interest method to amortize any premium or discount on debt security investments. Prepare the required journal entries on July 1 and December 31, 2017, and June 30, 2018.

 

BE16-7  

 

Account for fair value through profit or loss investment.

(LO 3) AP

Using the data presented in BE16-5, assume Strand Corp. is a public company and that it purchased Hydrocor's bonds at par for trading purposes. Prepare the journal entries to record (a) the purchase of the bonds on June 30, 2017; (b) the receipt of the first interest payment on December 31, 2017; and (c) any required adjusting journal entries on December 31, 2017.

 

BE16-8  

 

Account for sale of fair value through profit or loss investment.

(LO 3) AP

On August 1, McLain Finance Inc. buys 3,000 Datawave common shares for trading purposes for $114,000 cash. On October 15, McLain receives a cash dividend of $2.75 per share from Datawave. On December 1, McLain sells the shares for $120,000 cash. Prepare the journal entries to record the (a) purchase of the shares, (b) receipt of the dividend, and (c) sale of the shares.

 

BE16-9  

 

Account for fair value through other comprehensive income investment.

(LO 3) AP

On April 1, 2017, Perfect Plastics Company purchased 40,000 common shares in Ecotown Ltd. for $15 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $17 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment.

In: Accounting

An investment in an item of equipment would cost GH¢150,000. It is estimated that sales in...

An investment in an item of equipment would cost GH¢150,000. It is estimated that sales in the first
year would be GH¢120,000 rising by 10% a year for the next four years. Variable costs would be
50% of sales. Annual fixed costs would be GH¢40,000 in the first three years, rising to GH¢60,000
in years 4 and 5. Fixed costs of 60% would be avoidable if the project did not go ahead. The scrap
value of the equipment at the end of year 5 would be GH¢10,000. The project would also require
an investment in working capital of GH¢30,000 at the start of year 1 rising to GH¢40,000 at the
start of year 2 and to GH¢50,000 at the start of year 4. The company’s cost of capital is 9%.
Required: Calculate the NPV of the project and suggest whether it should be undertaken.

In: Finance

Qing Company traded equipment with a cost of $2,200,000 and a book value of $1,200,000 and...

Qing Company traded equipment with a cost of $2,200,000 and a book value of $1,200,000 and gave $1,000,000 cash for a piece of equipment from BGI Company. The old machine had a fair value of $2,000,000. The two pieces of equipment have similar functions and are not expected to change the two firms’ future cash flows. Which of the following journal entries would Qing make to record the exchange?

In: Accounting

What are the components of the weighted average cost of capital (WACC) and how do they...

What are the components of the weighted average cost of capital (WACC) and how do they differ for an MNE compared to a purely domestic firm?

There are potential benefits and risks from raising capital on global markets. Discuss the pros and cons in terms of risk of raising capital on global markets.

Briefly discuss and explain the global CAPM.

In: Finance

The cost curve for a monopoly in the coffee market is given by the following: MC=AC...

The cost curve for a monopoly in the coffee market is given by the following: MC=AC = 60

The market demand curve for coffee is given by the following: P = 200 2Q

a) Calculate the monopoly equilibrium price and quantity in the tea market.

b) Calculate consumer surplus, producer surplus, and deadweight loss under monopoly. Illustrate your answer with a graph. Label all the relevant curves, points and areas carefully.

In: Economics

1. The electricity technology (on the roof of all houses) lowers the cost of electricity for...

1. The electricity technology (on the roof of all houses) lowers the cost of electricity for each house. Evaluate the statement: each household benefits equally.

2. Justify why the rational expectation of increased future demand in electricity does not cause the above supply and demand curves to change

In: Economics

Assume that two firms are operating with identical cost schedules, but one firm is in a...

Assume that two firms are operating with identical cost schedules, but one firm is in a perfectly competitive industry,

and the other is in a monopolistically competitive industry.

- a. Using two correctly labeled graphs, show the long run equilibrium price and output levels for each of these two firms.

- b. Compare the long run equilibrium price and output levels for these two firms.

- c. What level of economic profit will each firm earn in the long run? Why do these results occur?

- d. For each of the two firms at the equilibrium quantity, indicate whether the firm’s demand curve is perfectly elastic, elastic, unit elastic, inelastic, or perfectly inelastic. How can you tell?

In: Economics