the signet corporation has issued four-month commercial paper with a million face value. the firm netted on the sale. what effective annual rate (ear) is signet paying for these funds?

Answers

Answer 1

if Signet Corporation's discount rate on the commercial paper is 3% and the net proceeds are $990,000, then the effective annual rate (EAR) it is paying for these funds is 3.03%.

Without the net proceeds or the discount rate, it is not possible to determine the effective annual rate (EAR) that Signet Corporation is paying for the commercial paper.

To calculate the EAR of commercial paper, we need to know the discount rate, which is the rate at which the commercial paper is sold. This rate is typically quoted on an annual basis, even if the commercial paper has a shorter maturity. Additionally, we need to know the net proceeds received by the issuer after deducting any fees or expenses associated with the issuance.

Once we have the discount rate and net proceeds, we can use the following formula to calculate the EAR:

EAR = [(1 - discount rate) / (1 - days in the year / days to maturity)] - 1

For example, if the discount rate on Signet Corporation's commercial paper is 3% and the net proceeds are $990,000, we can calculate the EAR as follows:

EAR = [(1 - 0.03) / (1 - 365/120)] - 1

   = 0.0303 or 3.03%

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Related Questions

Business cycles refer to the:____.
a. continued expansion in real gdp.
b. recurrent swings (up and down) in real gdp.
c. continued decline in real gdp.
d. period when real gdp grows at unusually high rates.

Answers

Business cycles refer to the recurrent swings (up and down) in real GDP.

Economic downturns were seen by economists in both the United States and Europe as "diseases" that needed to be addressed; as a result, countries with a history of development and prosperity were considered to be "healthy" economies.

However, by the end of the 19th century, a large number of economists had come to understand that economies were cyclical by their very nature, and research was increasingly focused on identifying the primary factors that shaped the direction and disposition of national, regional, and industry-specific economies.

Economic experts, corporate leaders, and business owners point to a number of elements as being particularly crucial in determining the character of business settings today.

Hence, option C is correct.

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A good economist will ignore ________ and focus on ________ when it comes to making the right decisions.

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A good economist will ignore sunk costs and focus on marginal value when it comes to making right decisions. In economics and finance, a sunk cost is a cost that has already been incurred and cannot be recovered.

Sunk costs are treated as by gone costs in economic decision making and are not considered when deciding whether to continue investment project. The value of the final unit of consumption is known as the marginal value to a consumer. Value of the good to the consumer who purchased the good but received the lowest value from consumption is represented by an industry demand curve.

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Which of the following governs a limited partnership, its internal affairs, and the liability its limited partners

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The correct option is : the law of the state in which it is organized.

What is limited partnership?

Limited partnership (LP) is a type of partnership organization that limits the personal liability of some partners. In general partnerships, every partner remains personally liable for the debts and obligations of the partnership.

A limited partnership (LP)—not to be confused with a limited liability partnership (LLP)—is a partnership made up of two or more partners. The general partner oversees and runs the business while limited partners do not partake in managing the business. However, the general partner of a limited partnership has unlimited liability for the debt, and any limited partners have limited liability up to the amount of their investment.

There are three forms of partnerships:

Limited partnership.General partnership.Limited liability partnership.

Therefore, we can conclude that the correct option is D.

Your question is incomplete, but most probably your full question was:

Which of the following governs a limited partnership, its internal affairs, and the liability its limited partners?

A. the federal government

B. all states in which the business operates

C. the articles of limited partnership

D. the law of the state in which it is organized

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What is the correlation coefficient of the relationship between the average weekly hours spent studying and the score on the final exam?.

Answers

The correct answer is : Multiple R = 0.5049 (correlation coefficient )

What is Correlation Coefficient ?

The correlation coefficient of the relationship between the average weekly hours spent studying and the score on the final exam can be determined/calculated via the relationship between the average weekly hours spent studying and the score of the final exam.

To find the correlation coefficient we will find the square root of R squared :

[tex]\sqrt{R - SQUARED}[/tex]  [tex]=[/tex]  [tex]\sqrt{0.2549}[/tex] [tex]=[/tex] [tex]0.5049[/tex]

Remember that for single variable linear regression, Multiple R, which is the square root of R2, is equal to the absolute value of the correlation coefficient. The regression coefficient for Average Weekly Hours Studying (0.03, as shown in the bottom table of the output) is positive, so the slope is of the regression line is positive. Therefore, the correlation coefficient must also be positive.

Your question is incomplete, but most probably your full question was:

SUMMARY OUTPUT

Dependent Variable: Score on Final Exam

             Regression Statistics                            

Multiple R                            0.5049

R Square                             0.2549

Adjusted R Square            0.2394

Standard Error                        0.15

Observations                            50

ANOVA                                              

                                        df           SS           MS           F         Significance F Regression                       1           0.36          0.36        16.42           0.0002

Residual                          48          1.05          0.02                                        

Total                                49           1.41                                                          

                          Coefficients   Standard   t Stat    P-Value   Lower Upper                                

                                                        Error                                     95%     95%                                

Intercept                   0.57          0.03          20.57    0.0000      0.52    0.63                                                                          

Average Weekly

Hours Studying      0.03          0.01             4.05     0.0002     0.01      0.04                                                                                                  

Therefore, we can conclude that the is : Multiple R = 0.5049 (correlation coefficient )

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Sources of financing for corporations include ______. (Check all that apply.) Multiple select question. issuing stock borrowing collecting accounts receivable fixed asset retirements

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Sources of financing for corporations include issuing stock and borrowing.

How would you define financing?

The process of raising capital or finances for any type of spending is known as finance. It is the act of directing various financial resources—such as credit, loans, and invested capital—to those parts of the economy that need them most or can use them most effectively.

Family and friends, equity providers, debt providers, and institutional investors are the four types of frequent funding sources employed in developing countries.

Any economic system that makes use of financing is essential because it enables businesses to buy goods that are out of their immediate price range. To put it another way, financing is a means to use the time value of money (TVM) to employ anticipated future cash flows for projects.

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Household​ production, such as baking bread at​ home, is not included in gdp because it.

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Household​ production, such as baking bread at​ home, is not included in GDP because it does not involve a market transaction.

What exactly is a market transaction?

The trading of commodities and services on a market. When calculating gross domestic product, the set of market transactions that take place in the economy is crucial (GDP). Market transactions offer the fundamental information that the Bureau of Economic Analysis' number crunchers use to start estimating GDP.

These number crunchers' objective is to assess economic production rather than merely market transactions. As a result, they boost economic production while removing those market transactions that do not entail it.

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An important part of defining the problem in marketing research is to ________ that are neither too broad nor too narrow.

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An important part of defining the problem in marketing research is to set objectives that are neither too broad nor too narrow.

What is marketing research?Market research is a systematic attempt to learn as much as possible about target markets and consumers, starting with who they are. It is a key part of corporate strategy and a crucial element in keeping competitiveness.The needs of the market, the size of the market, and the competition are all identified and analyzed with the aid of market research. Its methods include both qualitative ones, like focus groups, in-depth interviews, and ethnography, and quantitative ones, such customer surveys and secondary data analysis.The systematic collection and analysis of data on people or organizations using statistical and analytical tools from the applied social sciences to acquire understanding or enhance decision-making encompasses social and opinion research.

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Match each term with its description. Tiles human capital right gross domestic product infrastructure physical capital Pairs the direction a production possibilities curve shifts when the economy grows

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All are terms relating to Economic Growth.

Right: the direction a production possibilities curve shifts when the economy grows.Tiles: Physical CapitalHuman capital: the skills and knowledge that employees bring to their jobs.Infrastructure: the items necessary for a business or community to function, such as railroads, airports, hospitals, and Internet.What is Economic growth of a country?When comparing one period of time to another, economic growth is a rise in the production of economic commodities and services. It can be calculated in nominal or real (inflation-adjusted) terms. Although other metrics are also employed, gross national product (GNP) or gross domestic product (GDP) are the most common ways to quantify overall economic growth. An economy is said to be experiencing economic growth when its total output rises. Gains in overall production frequently, but not always, correlate with higher average marginal productivity.

In economic growth, there is a gain in income, which encourages people to spend more money on goods and services, raising the standard of living or quality of life in tangible terms.

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Answer:

This is the correct answer.

Explanation:

As a percentage of u.s. gdp, today exports are _________ and imports are _______ than they were in 1950.
a. lower, lower
b. higher, higher
c. lower, higher
d. higher, lower

Answers

As a percentage of U.S GDP, today exports are higher and imports are lower than they were in 1950.

Option D. higher, lower.

In 2020, exports of goods and services from the United States accounted for approximately 10.13% of gross domestic product (GDP). This is up from his 9.25% of US GDP in 1990.

When a country exports goods, it sells them to foreign markets: consumers, businesses, or governments in other countries. These exports bring money to the country and increase the GDP of the exporting country.

US exports of goods and services (based on national income) account for approximately 14% of the US GDP. In recent years, the United States has: We export more services abroad than we import.

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The most competitively effective and very likely most profitable long-term approach to reducing or eliminating the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe-Africa is to

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Build and equip a production facility in Europe-Africa and then expand it as may be needed to supply all ( or at least most) of the pairs the company intends to try to sell in Europe-Africa is the most competitively effective and very likely most profitable long-term approach to reduce or eliminate the impact of paying tariffs imported to a company's distribution warehouse in Europe-Africa.

Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade limitations that raise prices and decrease available quantities of goods and services for U. S. businesses and customers.

A “unit” or specific tariff is a tax levied as a fixed charge for each unit of a good that is imported – for instance, $300 per ton of imported steel. An “ad valorem” tariff is levied as a proportion of the value of imported goods. An example is a 20 percent tariff on imported automobiles.

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In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

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In a direct channel, the same member both produces and distributes a product or service to consumers.

What are Distribution Channels ?

Distribution channel (or supply chain) set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption - consists of all the institutions and marketing activities in the marketing process.

There are two types of distribution:

Direct-occurs when the suppliers and the tourist deal directly with each other. A direct channel allows the consumer to make purchases from the manufacturer

Indirect- occurs when part or all of the functions are handled by an intermediary. A indirect channel allows the consumer to buy the goods from a wholesaler or retailer.

Therefore, we can conclude that the correct option is B.

Your question is incomplete, but most probably your full question was:

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

a. tiered

b. direct

c. horizontal

d. vertical

e. exclusive

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When you feel cold, you engage in behavior to reduce this unpleasant feeling, for example, by putting on your coat. This desire to reduce internal tension is a crucial aspect of ________ theory.

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This desire to reduce internal tension is a crucial aspect of the drive-reduction theory.

What is drive-reduction theory?

It corresponds to a psychological theory developed by Clark Hull, who believed that individuals are motivated to meet their basic needs, which are psychological and physiological needs.

Therefore, a behavior to reduce the unpleasant sensation of cold would be a physiological motivation proposed by the drive-reduction theory.

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Monique's Unique Boutique sells clothing from around the world in the United States. Monique regularly travels overseas to find the best and most unusual shirts, dresses, and pants that foreign producers have to offer. Monique is a(n)

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Monique is a(n) Importer.

What is an Import?

Any good or commodity brought into one country from another. Customs authorities must be involved in both the import and export countries.

Import trade means goods and services purchased in one country from another. Because products are frequently transported by ship to foreign countries, the term "import" derives from the word "port." Imports, like exports, are the backbone of international trade.

In this case, if the cost of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit.

Objectives of Import Trade:

To speed up industrialisationTo meet domestic demandTo overcome natural disastersTo improve standard of livingTo ensure national defense

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The distinction between the northern economy and southern economy declined with the disappearance of indentured servitude from the United States.

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The given statement is False, The distinction between the northern economy and southern economy declined with the disappearance of indentured servitude from the United States.

The U.S. is a rustic of fifty states protecting a sizable swath of North us, with Alaska in the northwest and Hawaii extending the nation’s presence into the Pacific Ocean. The most important Atlantic Coast cities are new york an international finance and subculture center, and the capital Washington, DC. Midwestern town Chicago is thought for influential architecture and on the west coast, Los Angeles Hollywood is famed for filmmaking.

There are fifty (50) states and Washington D.C.The remaining states to sign up for the Union had been Alaska (49th) and Hawaii (fiftieth). both joined in 1959. Washington D.C. is a federal district under the authority of Congress. Local authorities are administered by using a mayor and 13-member city council.

Guam (officially the Territory of Guam) is an unincorporated and prepared territory of ours. Positioned in the western Pacific Ocean, Guam is considered one of five American territories with longtime civilian authorities.

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The question is incomplete. Please read below to find the missing content.

The distinction between the northern economy and southern economy declined with the disappearance of indentured servitude from the United States.True/False

write the answer in a income statement sheet

Answers

The income statement has net income of $4710.

Income statement

Income statement for the year ended November 30, 2020

Repair Revenue $9900

Installation fees  $1600

Total revenue $11,500

Expenses:

Salaries expense $2600

Rent expense $2000

Advertising expense $850

Supplies expenses $185

Utilities expense $235

Insurance expense $150

Delivery expense  $770

Total expenses $6790

Net income $4710

($11,500-$6790)

Therefore the income statement has net income of $4710.

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Writing the net income in an Income statement sheet for Riley Repair Shop for the year ended November 30, 2020, is as follows:

Riley Repair Shop

Income Statement

For the year ended November 30, 2020

Revenue:

Repair Revenue     $9,900

Installation fees        1,600

Total revenue                       $11,500

Expenses:

Salaries                  $2,600

Rent                          2,000

Advertising                 850

Supplies                      185

Utilities                       235

Insurance                   150

Delivery                     770

Total expenses                   $6,790

Net income                          $4,710

What is an income statement?

An income statement is a financial statement that summarizes an entity's revenue and expenses to determine the net income.

It is also called an income summary and determines the entity's financial performance for a financial period.

Thus, Riley Repair Shop's income statement shows that it earned a net income of $4,710 for the year ended November 30, 2020.

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If inflation rises unexpectedly by 5%, indicate for each of the following why the economic actor is helped, hurt, or unaffected: a) A union member with a COLA wage contract. b) Someone with a large stash of cash in a safe deposit box. c) A bank lending money at a fixed rate of interest. d) A person who is not due to receive a pay raise for another 11 months.

Answers

The person who is helped by the unexpected inflation is a person who is not due to receive a pay raise for another 11 months.

What is inflation?

Inflation is when there is a rise in the general price levels of an economy. When inflation is not expected, it would not be factored into the prices in the economy. Thus, those who received fixed wages are hurt. Also lenders are hurt.

A person who is not due to receive a pay raise for another 11 months is helped because in 11 months, the inflation would already be factored into the wage increase.

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The government hires 2000 workers for new infrastructure projects. Over half of the newly hired construction workers were employed in other sectors of the economy and quit their jobs to take this better paying opportunity.

What types of fiscal polices are described?

Answers

This is an example of crowding out and expansionary fiscal policy. From a fiscal policy standpoint, the government implements expansionary policies by giving citizens more money through budgeting instruments. Budget deficits result from higher spending and lower taxation, which means that more money is going into the economy than is being taken out.

Tax reductions, transfer payments, refunds, and greater public investment on initiatives like infrastructure upgrades are all examples of expansionary fiscal policy. For instance, it might boost discretionary government expenditure, injecting additional cash into the economy via government contracts. Economic downturns and recessions are expected to be avoided through expansionary policies.

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The feature that differentiates monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms . Question 2 options: cannot influence market price by virtue of their size alone. are price takers. do not have price as a decision variable. benefit from barriers to entry.

Answers

Monopolistically competitive firms (A) cannot influence the market price by virtue of their size alone while monopolies and oligopolies can.

What is a monopoly?A monopoly occurs when there is a single seller in the market. The monopoly case is considered the polar opposite of perfect competition in conventional economic theory. The demand curve facing the monopolist is, by definition, the industry demand curve, which is downward sloping.What is oligopoly?Oligopolistic markets are characterized by a small number of suppliers. They can be found in all nations and in a wide range of industries. Some oligopoly markets are very competitive, whereas others are substantially less so, or appear to be.

Monopolistically competitive enterprises, unlike monopolies and oligopolies, cannot influence market prices only through their size.

Therefore, monopolistically competitive firms (A) cannot influence the market price by virtue of their size alone while monopolies and oligopolies can.

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Correct question:

The feature that differentiates monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms.

(A) cannot influence the market price by virtue of their size alone.

(B) are price takers.

(C) do not have a price as a decision variable.

(D) benefit from barriers to entry.

The concept that smaller sized companies are riskier and, therefore, should have a higher cost of equity is known as which of the following

Answers

The concept that smaller sized companies are riskier and, therefore, should have a higher cost of equity is known as the size premium.

What is Equity?Equity, also known as shareholders' equity or owners' equity for privately held businesses, is the sum of money that would remain in the hands of a company's shareholders in the event that all of its assets were sold off and its liabilities were fully settled. It is the worth of company sales less any obligations owing by the company that were not transferred with the sale in the case of an acquisition.

One of the most frequently used pieces of information by analysts to evaluate a company's financial health is equity, which can be found on a company's balance sheet.

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Todd Smith works at a retail store selling sports equipment. His daily tasks include opening the store, creating the work schedules, processing payroll, overseeing sales and inventory, and training employees. At what level of the organizational pyramid would you categorize Todd

Answers

Todd is at the managerial level of the organizational pyramid.

What is the organizational Pyramid?

A well-liked form of organizational leadership in business is the pyramid structure. Because there are a lot fewer leaders than employees, an organizational chart that lists everyone on it naturally has a pyramid shape. Executives, managers, and personnel make the three main tiers of a pyramid organizational structure. The executive level is at the top of a pyramid organizational structure, which has declining levels from middle management to the lower levels staff of the organization. Each upper level of the structure is supposed to be supported by the pyramid's lower levels in order for it to work. This is a conventional organizational structure system that is frequently associated with bureaucracy.

What are the roles assigned to the three levels of the organizational pyramid?

The fundamental idea behind a pyramid organizational structure is that lower levels of the company obey orders from higher up. In essence, the executives are in charge of all significant business operations. This covers the general vision, strategy, and operations. Managers typically work directly for executives and are in charge of overseeing certain divisions or goods. Staff assists managers by carrying out duties that carry out orders from the executive level.

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The system of meaning and power created to determine who is related to whom and to define their mutual expectations, rights, and responsibilities is?

Answers

Answer:

kinship

Explanation:

In order to provide more complete information, u.s. gaap allows that any significant noncash investing and financing activities may be reported:____.

Answers

It is reported as foot notes  in cashflow statement or in the notes of financial statements.

When an income statement is converted to cash flows from operational operations, noncash items like as depreciation and nonoperating profits and losses are not included. Non-cash investing and financing entails making an investment or purchase using financial instruments other than cash.

The Generally Accepted Accounting Principles (GAAP) are a collection of generally observed financial reporting accounting standards and regulations. The four main constraints of GAAP are objectivity, the materiality, the consistency, and the prudence.

Companies are required by both IFRS and US GAAP to declare any substantial non-cash investment and financing operations, either as a footnote at the bottom of the statement of the cash flows or in  notes to the financial statements.

Therefore, the answer is the bottom of the statement of  the cash flows or in the notes to  financial statements.

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What is the largest sector of the online travel services market in terms of revenue?

Answers

The largest sector of the online travel services market in terms of revenue is Airline Reservations.

An airline is a company that provides air transportation services to passengers and cargo while traveling. Airlines may use aircraft to provide these services and partner or partner with other airlines to enter into codeshare agreements to provide and operate the same flights.

In the aviation industry, airlines generally fall into three categories. That is legacy (or "network") airlines, low-cost carriers (LCC), and ultra-low-cost airlines (ULCC). The two airlines are not exactly the same, but almost all fall into one of these categories. American Airlines Group is the largest in fleet size, passengers carried, and passenger miles.

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What is the name for the practice whereby a married woman loses all of her political and economic rights to her husband?.

Answers

Coverture is the name for the practice whereby a married woman loses all of her political and economic rights to her husband. Hence, the correct answer is coverture. Read below about coverture.

What is coverture?

Coverture was a legal doctrine in the English common law in which a married woman's legal existence was considered to be merged with that of her husband, so that she had no independent legal existence of her own.

Therefore, the correct answer is as given above

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A university issues a bond with a face value of $5000 and a coupon rate of 4. 41% that matures on july 15, 2018. The holder of such a bond receives coupon payments of $110. 25. How frequently are coupon payments made in this case?.

Answers

The coupon payments would be made twice every year.

What is coupon payment?

Coupon payment means the cash amount that bondholders would receive from the university(bond issuer) on periodic basis till the bond matures, it is likely that the coupons are payable semiannually or annually as would be determined in this analysis.

The coupon payment is closely related with the coupon rate , which means that in order to determine the number of times in a year that coupons will be paid we can make use of the coupon received, the par value, the coupon rate, such that the frequency of coupon payments would be the unknown as shown below:

coupon receipt=par value*coupon rate/coupon frequency

coupon receipt=$110.25

par value=$5000

coupon rate=4.41%

coupon frequency=unknown(assume it is X)

$110.25=$5,000*4.41%/X

$110.25=$220.50/X

X=$220.50/$110.25

X=2

Coupons would be twice every year, which means semiannual coupon payments

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Jimmy has completed the headline section of his text ad and is now writing the description section. What are three factors that Jimmy should include in the description section of his text ads? (Choose three.)

Answers

What  Jimmy should include in the description section of his text ads are:

State the  prices, and exclusive offers. Word of Encouragement for  potential customers.State why his  business is unique.

What is the importance of  text ads ?

Text ads is been used by a company to promote their business, this usually include the description about their products and services.

In this case,  Jimmy should include word of Encouragement for  potential customers in the description section of his text ads

CHECK THE COMPLETE QUESTION BELOW;

Jimmy has completed the headline section of his text ad and is now writing the description section. What are three factors that Jimmy should include in the description section of his text ads? (Choose three.)

(A) A mention of prices, promotions, and exclusive offers

(B) Encouraging potential customers to take action

(C) More landing pages to visit

(D) A variety of emoji to catch the attention of potential customers

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When people have formed _____, each is an agent of the group so that the members of the joint enterprise share liability

Answers

When people have formed partnership, each is an agent of the group so that members of the joint enterprise share liability. A formal agreement between two or more parties to run a business and split  profits is called a partnership. A partnership may have tax advantages over a corporation.

Partnership arrangements come in many different forms. One type of business where partners may have minimal liability is a partnership where all members share profits and liabilities equally. All partners in a general partnership corporation split the company's assets and debts equally. Lawyers and other professionals frequently create limited liability partnerships.

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Question Content Area The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

Answers

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

What are journal entries?A journal entry is an act of keeping or producing records of any economic or non-economic transaction.An accounting journal, which shows a company's debit and credit balances, records transactions. The journal entry can be made up of multiple records, each of which is either a debit or a credit. Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.

Inventory purchase journal entry:

Say you purchase $1,000 worth of inventory on credit. Debit your Inventory account $1,000 to increase it. Then, credit your Accounts Payable account to show that you owe $1,000. Because your Cash account is also an asset, the credit decreases the account.

Therefore, the journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

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The question you are looking for is here:

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

(A) Jan. 1    cash                    1,500

                     Account receivables                    1,500

(B) Jan. 1    Purchases                    1,500

                     Account payable                          1,500


(C) Jan. 1    Inventory                    1,500

                     Office Supplies                             1,500

(D) Jan. 1    Inventory                    1,500

                     Cash                                              1,500

Which of the following falls outside of the classification of business expenditures that fall into the category of variable costs?
a) costs that increase with the quantity produced
b) costs of research and development
c) costs related to labor expenditures
d) costs related to physical inputs

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The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

What is a costs of research and development?

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

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A borrower has applied for a loan from a mortgage company that intends to process the loan and then submit it to an investor for underwriting, closing, and funding. This borrower has applied with a

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A borrower has applied for a loan from a mortgage company that intends to process the loan and then submit it to an investor for underwriting, closing, and funding. This borrower has applied with a "mortgage broker".

What is mortgage broker?

On behalf of their clients, mortgage brokers conduct loan options research and deal with lenders. Additionally, a broker may arrange all loan paperwork, obtain the buyer's credit reports, confirm their income and expenses, and more.

The roles of a mortgage broker are-

To ensure that a borrower receives the best financing and the loan closes on schedule, a mortgage broker works with everyone involved in the lending process, including the real estate agent, underwriter, and closing agent.A broker may operate on their own or with a brokerage company. On behalf of their clients, mortgage brokers conduct loan options research and deal with lenders.A strong loan-pricing system that values a mortgage loan across multiple lenders at once is also available to many brokers, which speeds up and streamlines the process.

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