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XY has recently begun to lease an expensive machine. The lease agreement effectivelymeans that XY takes on substantially the risk and rewards associated with owning the asset.The managing director has instructed XY's finance director to treat the lease as an operatinglease in order to show a better financial position.(c)CD had 5,000,000 $1 ordinary shares in issue.Subsequently, CD made a rights issue of 1 new ordinary share at $3.50 per share for every 5ordinary shares currently held. At the same date CD's ordinary shares were trading at $4.75.(d)PU purchased machinery on 1 April 2011 for $350,000.PU depreciates machinery over 10 years, using the straight line method assuming no residualvalue.Required:Explain any ethical issues that this may cause for the finance director.
Required:
(i) Explain the difference between a bonus issue and a rights issue of shares.
(ii) Prepare the journal entries required to record CD's rights issue in its financial records, assuming that all rights were taken up.
Explain the difference between a short-run production function. Cite one example of this difference in a business situation Explain the relationship between a firm's short-run production function and its short-run cost function. Focus on the margin..
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The difference between the two number is 8.if one is represented by X the other no can be expressed usus a-5.b.x+4 c.x-. X-x
Evaluate both the advocates' position and the critics' position.
Because government-operated firms do not have to make a profit, they can usually produce at a lower cost and charge a lower price than privately owned enterprises." Evaluate this view.
Suppose that a competitive industry is in long Run competitive equilibrium. Then the price of substitute good (in consumption) decreases. What will happen to the short run to
In a random sample of 99 NBA games, the home team won 57 games. Test the null hypothesis that the home team wins one-half of all games against the alternative that the home team wins a majority of games.
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
Explain the target market including geographical location, shopping habits, and the different types of circumstances in which the product will be used.
Show the results of a Fiscal Policy action that will bring this economy to full employment level of Real GDP. Explain the effect on the fiscal budget and show the effect on the Money Market and the Investment Market.
What is a minimum wage and what are its effects if it is set above the equilibrium wage?
Illustrtae what does this experience suggest about the determinates of health care costs, and the long-run scope for private health insurance even with subsidy and compulsion.
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