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Linda Hall, manager of Rio Grande Building Corp., has been with the company for several years. She is a valued and trusted employee. Linda is in charge of recording collections on accounts, making the daily bank deposits, and reconciling the bank statements. As the sole manager and with responsibilities described above, she has not taken a vacation since she began working.
Earlier this year, clients began complaining to you, the president, about incorrect statements. As president, you checked into the matter. Linda assures you there is nothing to worry about in this situation. She asserts that the problem was due to slow mail, which made customers' payments and statements cross in the mail. However, because clients were not complaining last year, you doubt that the mail is the primary reason for the problem. Consider the following questions as you respond:
What should be done to make sure such problems are avoided in the future?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
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