barton industries can issue perpetual preferred stock at a price of $52 per share. the stock would pay a constant annual dividend of $3.41 per share. if the firm's marginal tax rate is 25%, what is the company's cost of preferred stock? round your answer to two decimal places.

Answers

Answer 1

The present cost per share amounts to $52 while the annual payout for each share stands at $3. 41

Here is the calculation:

Cost of preferred stock = (annual dividend payment / current share price) * (1 - marginal tax rate)

= (3.41 / 52) * (1 - 0.25)

= 5.24%

The cost of the preferred shares amounts to 6. About one-fourth of the total amount is owed as a result of the 25% marginal tax rate.

Marginal tax rate refers to the percentage of tax that is applied to an individual's or business's additional income. It represents the rate at which the last dollar earned is taxed. As income increases, higher marginal tax rates are applied to each additional dollar earned.

Read more about stocks here:

https://brainly.com/question/26128641

#SPJ4


Related Questions

a. Moon Plc has been specially formed to undertake two investment opportunities. The risk and return characteristics of the two projects are shown below:

X Y

Expected Return 10% 20%

Risk (standard deviation) 4% 7%

Moon plans to invest 60% of its available funds in Project X and 40% in Project Y. The directors believe that the correlation coefficient between the returns of the projects is +0.18.

Required:

i. Calculate the expected return from the proposed portfolio of Projects X and Y

ii. Calculate the risk of the portfolio and comment upon your result in the context of the risk reduction effect of diversification.

iii. How could Moon Plc invest its funds in order to obtain a minimum-risk portfolio?

b. Explain the principle of diversification. Your answer should include a discussion of systematic and unsystematic components of risk.

c. What return would a well-diversified investor expect from a Company, given the following information:

σA = 20%, σM=10% and rhoA,M =+0.6

Rf = 6%, RM =13%

Answers

a)  i. To calculate the expected return from the proposed portfolio of Projects X and Y, we need to consider the weights and expected returns of each project.

Expected return of the portfolio = (Weight of X * Expected return of X) + (Weight of Y * Expected return of Y)

Weight of X = 60% = 0.6Weight of Y = 40% = 0.4Expected return of X = 10%Expected return of Y = 20%

Expected return of the portfolio = (0.6 * 10%) + (0.4 * 20%)

= 6% + 8%= 14%

Therefore, the expected return from the proposed portfolio of Projects X and Y is 14%.

ii. To calculate the risk of the portfolio, we need to consider the weights, standard deviations, and correlation coefficient of the projects.

Risk of the portfolio = √[(Weight of X)^2 * (Risk of X)^2 + (Weight of Y)^2 * (Risk of Y)^2 + 2 * (Weight of X) * (Weight of Y) * (Risk of X) * (Risk of Y) * (Correlation coefficient)]

Weight of X = 60% = 0.6Weight of Y = 40% = 0.4Risk of X = 4%Risk of Y = 7%

Correlation coefficient = +0.18

Risk of the portfolio = √[(0.6)^2 * (0.04)^2 + (0.4)^2 * (0.07)^2 + 2 * (0.6) * (0.4) * (0.04) * (0.07) * (0.18)]

= √[0.0144 + 0.00976 + 0.0013824]= √0.0255424= 0.1599 or approximately 16%

The risk of the portfolio is 16%.

Diversification can reduce the risk of a portfolio through the combination of assets with low or negative correlation. In this case, the correlation coefficient between the returns of Projects X and Y is positive but relatively low at +0.18. The risk of the portfolio is lower than the weighted average of the individual project risks, which indicates a risk reduction effect of diversification. By diversifying investments across different projects, Moon Plc has reduced the overall risk of its portfolio.

iii. To obtain a minimum-risk portfolio, Moon Plc should allocate its funds in such a way that the correlation between the returns of the projects is negative or as close to zero as possible. By selecting projects with low or negative correlation, the risk of the portfolio can be minimized. In this case, since the correlation coefficient is positive, it may not be possible to achieve a minimum-risk portfolio with only Projects X and Y. Moon Plc may need to consider additional investment options or diversify its portfolio further to reduce risk.

b) The principle of diversification is based on the idea that by combining different assets or investments with low or negative correlations, the overall risk of a portfolio can be reduced.

Systematic risk, also known as market risk, refers to the risk that is inherent to the entire market or a particular segment of it. It cannot be eliminated through diversification as it is influenced by macroeconomic factors, such as interest rates, inflation, and overall market conditions. Systematic risk affects the entire market and is beyond the control of individual investors.Unsystematic risk, also known as specific risk or diversifiable risk, refers to the risk that is specific to a particular asset or investment. It can be reduced or eliminated through divers ification. Unsystematic risk arises from factors that are unique to a specific company or industry, such as management decisions, competitive pressures, or regulatory changes. By holding a diversified portfolio with different assets or investments, the unsystematic risk associated with individual assets can be spread out, reducing the overall risk of the portfolio.Diversification helps investors manage risk by combining assets with different risk and return characteristics. By holding a diversified portfolio, the impact of adverse events on one investment can be mitigated by the positive performance of other investments. Diversification does not guarantee profits or eliminate all risk, but it aims to reduce the overall risk of the portfolio and potentially improve risk-adjusted returns.

c) To calculate the expected return for a well-diversified investor, we can use the Capital Asset Pricing Model (CAPM), which considers the risk-free rate, the expected market return, and the beta of the company.

Expected return = Risk-free rate + Beta * (Expected market return - Risk-free rate)

σA = 20% (Standard deviation of Company A's returns)σM = 10% (Standard deviation of the market returns)rhoA,M = +0.6 (Correlation coefficient between Company A and the market)Rf = 6% (Risk-free rate)RM = 13% (Expected market return)

Beta (β) is calculated using the formula:

Beta = rhoA,M * (σA / σM)Beta = 0.6 * (20% / 10%) = 1.2

Expected return = 6% + 1.2 * (13% - 6%)

= 6% + 1.2 * 7%= 6% + 8.4%= 14.4%

Therefore, a well-diversified investor would expect a return of 14.4% from Company A.

About Investments

Investment is an activity, either directly or indirectly, with the hope that in the future the owner of the capital will receive a number of benefits from the results of the investment.

Learn More About investments at brainly.com/question/29547577

#SPJ11

Fargo Memorial Hospital has annual net patient service revenues of $14,400,000. It has two major third-party payers, plus some of its patients are self-payers. The hospital's patient accounts manager esti- mates that 10 percent of the hospital's paying patients (its self-payers) pay on Day 30, 60 percent pay on Day 60 (Payer A), and 30 percent Chapter 16: Current Asset Management and Financing. 603 € pay on Day 90.

a. What is Fargo's average collection period?
b. What is the firm's current receivables balance?
c. What would be the firm's new receivables balance if a newly pro- posed electronic claims system resulted in collecting from third- party payers in 45 and 75 days, instead of in 60 and 90 days?

Answers

(a) Fargo Memorial Hospital's average collection period is 66 days. (b)  The firm's current receivables balance is $14,400,000. (c)  The firm's new receivables balance with the proposed electronic claims system remains the same at $14,400,000.

a. To calculate Fargo Memorial Hospital's average collection period, we need to determine the weighted average number of days it takes for payments to be received from each payer category.

10% of self-payers pay on Day 30

60% of Payer A pays on Day 60

30% of Payer B pays on Day 90

Average collection period = (Percentage of self-payers * Days for self-payers) + (Percentage of Payer A * Days for Payer A) + (Percentage of Payer B * Days for Payer B)

= (0.10 * 30) + (0.60 * 60) + (0.30 * 90)

= 3 + 36 + 27

= 66 days

b. To calculate the firm's current receivables balance, we need to multiply the net patient service revenues by the corresponding percentages for each payer category.

Receivables balance = (Percentage of self-payers * Net patient service revenues) + (Percentage of Payer A * Net patient service revenues) + (Percentage of Payer B * Net patient service revenues)

= (0.10 * $14,400,000) + (0.60 * $14,400,000) + (0.30 * $14,400,000)

= $1,440,000 + $8,640,000 + $4,320,000

= $14,400,000

c. To calculate the firm's new receivables balance with the proposed electronic claims system, we use the revised payment percentages and multiply them by the net patient service revenues.

New receivables balance = (Percentage of self-payers * Net patient service revenues) + (Percentage of Payer A * Net patient service revenues) + (Percentage of Payer B * Net patient service revenues)

= (0.10 * $14,400,000) + (0.60 * $14,400,000) + (0.30 * $14,400,000)

= $1,440,000 + (0.60 * $14,400,000) + (0.30 * $14,400,000)

= $1,440,000 + $8,640,000 + $4,320,000

= $14,400,000

To know more about collection period  click here brainly.com/question/30762113

#SPJ11

Treasury stock ______. (Check all that apply.)
is stock that is no longer outstanding
is a contra-equity account
has a negative equity balance
is the number of shares authorized minus the number of shares issued

Answers

- Is stock that is no longer outstanding

- Is a contra-equity account

- Has a negative equity balance

Treasury stock refers to the shares of a company's own stock that has been repurchased by the company and is no longer outstanding or held by external shareholders. It is typically held by the company itself.

Treasury stock is accounted for as a contra-equity account because it reduces the shareholders' equity section of the balance sheet. This is because treasury stock represents shares that have been repurchased by the company but are not retired or canceled.

Since treasury stock is a contra-equity account, it has a negative balance. This negative balance offsets the positive balance in the equity section, resulting in a reduction in shareholders' equity.

However, the statement "is the number of shares authorized minus the number of shares issued" is not accurate. The number of shares authorized minus the number of shares issued does not necessarily represent treasury stock. It represents the number of shares that can still be issued by the company based on its authorized share capital.

Learn more about shares here:

https://brainly.com/question/30324507

#SPJ11

6. The chair of the government exchequer in Olympios has announced, and written into law, the spending plans for 2022: government spending on capital projects is planned as $80 billion, and government current spending will be $235 billion. Taxes have been set at 20% of income. Private investment in the economy is forecast at $145 billion. Autonomous consumption (independent of income) is estimated at $20 billion, and the marginal propensity to consume goods and services out of disposable income is 0.75. Imports and exports are projected to generate cashflows of $320 billion and $285 billion respectively. a) Write down a function for consumption of domestically produced goods and services as a function of national income Y. [1 mark] b) Determine the equilibrium level of national income for the economy in 2022. [3 marks] c) Calculate the projected tax receipts and budget surplus/deficit for 2022. [2 marks] d) A senior economic advisor proposes that the government run a deficit of $50 billion in 2022, while maintaining the level of national income calculated in part b). Assuming that all private money flows remain the same, calculate the new tax rate that would be required to achieve this, and the new level of government expenditure that would result. [4 marks] [Total: 10 marks]

Answers

a) A function for consumption of domestically produced goods and services as a function of national income is C = a + b(Y-T).

b) The equilibrium level of national income for the economy in 2022 is $1,800 billion.

c) The projected tax receipts and budget surplus/deficit for 2022 is $360 billion and $45 billion respectively.

d) The new tax rate that would be required to achieve this is 17%, and the new level of government expenditure that would result in $365 billion.

a) The function for consumption of domestically produced goods and services as a function of national income Y is given by: C = a + b(Y-T)

Here, C is the consumption of domestically produced goods and services, a is autonomous consumption, Y is national income, T is taxes, and b is the marginal propensity to consume goods and services out of disposable income.

b) Equilibrium level of national income for the economy in 2022 is determined using the formula:

Y = C + I + G + NX

Here, I is private investment in the economy, G is government spending on capital projects and current spending, and NX is net exports.

We can substitute the given values to obtain:

Y = (20 + 0.75(Y - 0.2Y)) + 145 + (80 + 235) + (285 - 320)

Simplifying and solving for Y, we get:

Y = 1800

Therefore, the equilibrium level of national income for the economy in 2022 is $1,800 billion.

c) Projected tax receipts can be calculated as:

Tax receipts = T × Y = 0.2 × 1800 = $360 billion

Total government spending = $80 billion + $235 billion = $315 billion

Budget surplus/deficit = Tax receipts - Total government spending= $360 billion - $315 billion = $45 billion

Therefore, the projected budget for 2022 has a surplus of $45 billion.

d) To achieve a deficit of $50 billion while maintaining the level of national income calculated in part b), we need to find the new tax rate and government expenditure using the formula:

Y = C + I + G + NXY = a + b(Y - T) + I + G + NX

Substituting the given values and simplifying, we get:

T = 0.17 (rounded to two decimal places)

Government expenditure = $315 billion + $50 billion = $365 billion

Therefore, the new tax rate required to achieve a deficit of $50 billion would be 17% and the new level of government expenditure would be $365 billion.

Learn more about National income:

https://brainly.com/question/20519015

#SPJ11

4. The catch-up effect Consider the economies of Hermes and Gribner, both of which produce gaggles of gopweng only tools and workers Suppose that, dung the course of 30 years, the level of physical capital per worker rises by 3 tools per worker in each economy, but the sie of each labor force remains the same Complete the following tables by entering productivity on terms of output per worker) for each economy in 2016 and 2046 Hermes Labor Force Output Productivity Physical Capital Year (Tools per worker) (Workers) (Gaggles of gap) (Gaggles per worker) 2016 50 3,000 2046 50 3,600 Gribines Physical Capital Output Productivity Laber Force (Workers) (Gaggles of gep) (Gaggles per worker) (Tools per worker) Year 2015 50 4,000 2046 12 50 4,300 Initially, the number of tools per worker was lower in Hermes than in Gritines, Fram 2016 to 2046, capital per worker res by 3 unts in each countr The 3-unit change in capital per worker causes productivity in Hermes to rise by a amount than productivity in Gribner. The rates effect. the S لها 014 F H O

Answers

The catch-up effect suggests that economies with lower initial levels of capital per worker tend to experience faster productivity growth, allowing them to catch up with economies that started with higher levels of capital.

In this case, the economies of Hermes and Gribner are compared in terms of their productivity and capital per worker over a 30-year period.

In 2016, both economies had a labor force of 50 workers. In Hermes, the level of physical capital per worker was initially 50 tools, while in Gribner it was 12 tools. The output in Hermes was 3,000 gaggles of gap, resulting in a productivity of 60 gaggles per worker. In Gribner, the output was 4,000 gaggles of gap, leading to a productivity of 80 gaggles per worker.

By 2046, the number of tools per worker increased by 3 units in both economies. In Hermes, the physical capital per worker reached 53 tools, and the output increased to 3,600 gaggles of gap. As a result, the productivity in Hermes rose to 72 gaggles per worker.

In Gribner, the capital per worker also rose to 15 tools, and the output increased to 4,300 gaggles of gap. This led to a productivity of 86.7 gaggles per worker.

Considering the catch-up effect, the initial lower level of capital per worker in Hermes allowed it to experience a higher rate of productivity growth compared to Gribner.

Despite both economies increasing their capital per worker by the same amount, the impact on productivity was relatively larger in Hermes. This is in line with the catch-up effect, where economies with lower initial capital levels tend to experience faster productivity growth to catch up with more advanced economies.

Overall, the catch-up effect demonstrates how countries with lower levels of capital per worker can achieve significant productivity gains over time, leading to economic growth and narrowing the productivity gap with more developed countries.

To know more about catch-up effect refer here:

https://brainly.com/question/31571542?#

#SPJ11

(a) Suppose we have preferences U(X, Y) = X1 Y3. Create a table and graph/sketch the indifference
curve through the bundle X = 10 and Y = 10. What is the utility at (10, 10)?
(b) The Marginal Rate of Substitution is MRSXY = - Y/3X. Interpret what this means and explain
why the MRS changes along the indifference curve.
(c) Let prices be Px = $5, Py = $10 and income M = $500. Draw/sketch the budget constraint.
Explain what the slope of the budget line means in economic terms.
(d) Give the consumer’s utility maximization problem and express this in words. What are the two
conditions (equations) that identify the optimum? Sketch this in a figure and explain.
(e) Show and explain why these preferences imply that the consumer will spend ¼ of her income on
Good X and ¾ of her income on Good Y
(f) For the income and prices in (c), what is optimal X and Y? Show your work.
(g) Suppose Px rises to $6 and Py falls to $8 but income stays at $500. Does consumer utility rise or
fall? Show and explain.
(h) Calculate the Compensating Variation that ensures the consumer is no worse off nor better off
with these price changes. Show and explain your work

Answers

To create a table and graph the indifference curve through the bundle X = 10 and Y = 10, we will vary the values of X and Y while keeping the utility constant at U(X, Y) = 10^1 * 10^3 = 10,000.

How do we calculate the utility for different bundles?

Table:

Bundle (X, Y) Utility (U(X, Y))

(10, 10) 10,000

(5, 20) 2,000

(20, 5) 20,000

(2, 40) 800

(40, 2) 40,000

The indifference curve represents all the combinations of X and Y that yield the same utility of 10,000. By plotting these bundles on a graph, we can sketch the indifference curve.

b. The Marginal Rate of Substitution (MRS) measures the rate at which a consumer is willing to give up one good (Y) to obtain an additional unit of another good (X) while keeping the utility constant.

In this case, the MRSXY = -Y/(3X), which means that as the consumer consumes more of good X, they are willing to give up less of good Y.

Along the indifference curve, the MRS changes because of the diminishing marginal rate of substitution. As the consumer increases the consumption of good X, the marginal utility derived from each additional unit of X decreases, causing them to be willing to give up less of good Y to maintain the same level of satisfaction.

Read more about Utility

brainly.com/question/14729557

#SPJ4

the law of diminishing marginal returns a. causes average fixed costs to decline continuously as output increases. b. results in mc but not avc curves eventually increasing at an increasing rate. c. causes the difference between average total cost and average variable cost to increase as output increases. d. results in average variable cost (avc), average total cost (atc), and marginal cost (mc) curves eventually increasing at an increasing rate.

Answers

The law of diminishing marginal returns results in average variable cost (AVC), average total cost (ATC), and marginal cost (MC) curves eventually increasing at an increasing rate. (Option d)

The law of diminishing marginal returns results in average variable cost (AVC), average total cost (ATC), and marginal cost (MC) curves eventually increasing at an increasing rate.

The law of diminishing marginal returns implies that as more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decline. This leads to an increase in the average variable cost (AVC) as more units are produced, as the same amount of variable input is spread over a larger quantity of output.

Since average total cost (ATC) is the sum of average fixed cost (AFC) and AVC, and AFC typically remains constant in the short run, the increase in AVC leads to an increase in ATC. Moreover, since marginal cost (MC) represents the change in total cost resulting from producing an additional unit of output, and diminishing marginal returns increase costs per unit, MC also increases at an increasing rate.

To know more about law of diminishing marginal returns follow the link:

https://brainly.com/question/30395630

#SPJ4

Compared with autarky (where each economy consumes only from what they produce themselves), the combination of specialisation and trade is likely to: a. Shift the feasible consumption frontier to the right of the feasible production frontier b. Shift the feasible consumption frontier inwards c. Shift the feasible production frontier inwards d. Shift the feasible production frontier outwards.

Answers

Compared with autarky (where each economy consumes only from what they produce themselves), the combination of specialization and trade is likely to shift the feasible production frontier outwards. Therefore, the correct answer is d.

Feasible consumption frontier refers to the line that shows the various combinations of goods that can be consumed using all available resources in the economy. Feasible production frontier is a curve that shows the maximum possible production levels of two goods, which can be produced using all available resources.

Autarky is a situation where an economy produces and consumes all goods and services locally without any trade with the outside world.The combination of specialization and trade can lead to an increase in production and consumption levels of goods and services beyond the levels achievable under autarky.

Specialization refers to the division of labor and concentration on a particular production process or product, where each country produces goods that they have a comparative advantage in.Trade occurs when a country sells its goods to another country that has a demand for those goods. It then buys goods from that country that has a comparative advantage in producing the goods.

Specialization and trade increase the production capacity of each country and enable them to produce more goods than they would under autarky. Therefore, the feasible production frontier shifts outwards, creating more production possibilities, and enabling countries to consume more goods and services. Thus, the correct answer is d.

Know more about economy here:

https://brainly.com/question/30131108

#SPJ11

Accounting 1A
Chapter 14 – Financial Statement Analysis.
Account Classification
Listed below are balance sheet accounts for M4 Engineering.
Identify what balance sheet section the account
belongs i

Answers

With regard to the balance sheet items , here is the class under which they belong. See the attached.

Balance sheet items

Balance sheet items are germane because they provide asnapshot of a company's financial   fitness at a specific point in time.

They can be used to assess a company's liquidity,solvency, and    profitability.

By understanding   the balance sheet items, investors and creditors can get a better understanding of a company's financial health and make informed decisions about   whether to invest in or lend money to the company.

See the attached.

Learn more about balance sheet at:

https://brainly.com/question/1113933

#SPJ4

Full Question:

Although part of your question is missing, you might be referring to this full question:

Account Classification

Listed below are balance sheet accounts for M4 Engineering. Identify what balance sheet section the account

belongs in:

- Current Assets

- Long Term Investments

- Property Plant and Equipment

- Intangibles

- Current Liabilities

- Long-term liabilities

- Stockholders’ Equity

Account Amount Balance Sheet Section

Accounts Payable 5,000

Accounts Receivable 5,000

Accum. Depreciation 20,000

Bonds Payable 50,000

Cash 20,000

Common Stock 25,000

Copyrights 30,000

Discount on Bonds Payable 2,500

Inventory 1,000

Investments (long term) 25,000

Machinery 100,000

Marketable Securities 15,000

PIC in Excess of Par - CS 75,000

Prepaid Insurance 3,000

Retained Earnings 23,500

Unearned Fees 1,000

Wages Payable 2,000

Briefly explain the law of demand and law of supply in terms of
price and quantity demanded/quantity supplied due to the pandemic
phenomena with a diagram.

Answers

The law of demand states that as price increases, quantity demanded decreases, while the law of supply states that as price increases, quantity supplied increases.

The law of demand and the law of supply still hold during the pandemic, meaning that higher prices generally lead to a decrease in the quantity demanded and an increase in the quantity supplied.  Pandemic has caused quantity demanded of health care goods to increase as well as quantity supplied of health care goods to increase as well. In this regard, the law of demand says that with increase in price, quantity demanded decreases and vice versa.

In contrast to it, law of supply says that with increase in price, quantity supplied increases and vice versa. When price of healthcare goods increased, then quantity supplied also increased in the market. It happened due to the pandemic.

Diagram of law of demand is as follows attached:

Here, it can be seen that with decrease in price from P to P1, quantity demanded increases from Q to Q1.

Diagram of law of supply is as follows attached:

Here, it can be seen that with increase in price from P to P1, quantity supplied increases from Q to Q1.

To learn more about  law of demand  here

https://brainly.com/question/15072976

#SPJ4

Fred, a clerk at a Games Store, takes a game player and a selection of games from the store without permission. Most Way Product O a trade libel. O b.wrongful interference with a business relationship O c. none of the choices. O d.conversion,

Answers

Fred, a clerk at a Games Store, takes a game player and a selection of games from the store without permission. The crime committed by Fred can be referred to as D) conversion.

Conversion - Conversion is considered as the civil wrong in which someone interferes with the use or enjoyment of personal property that belongs to someone else. Conversion can be regarded as the unauthorized act that denies an owner of personal property of possession and use of their assets. The action taken by Fred is considered as a crime.

Conversion is more severe than theft or larceny because it involves denying the owner the rights to use their property. In this scenario, Fred, a clerk at a Games Store, takes a game player and a selection of games from the store without permission. This means that Fred is guilty of conversion because he denies the store ownership and possession of the assets in question. Fred should be held responsible and prosecuted for his actions.

To know more about conversion visit :

brainly.com/question/32499493

#SPJ11

Final answer:

Fred's action in this situation is an example of conversion - a legal term pertaining to wrongfully taking or using someone else's property without permission.

Explanation:

Fred's act of taking a game player and a selection of games from his workplace without permission is categorized under conversion. Conversion is a common law tort wherein one person, without the consent of the owner, deprives others of their personal property or interferes with its use. Because Fred has taken these items without the permission of the store owner, he is depriving the store of its property and interfering with its use for sale to customers.

Learn more about Conversion here:

https://brainly.com/question/34235911

#SPJ12

True or False? Briefly discuss.
b. If a firm makes zero economic profit, it must shut down.

Answers

The given statement, "If a firm makes zero economic profit, it must shut down," is False. A company with zero economic profit would keep running because the organization is making adequate money to meet its opportunity costs.

What is Economic Profit?

Economic profit is the difference between the total income of a company and the total opportunity cost of producing. It can be calculated by subtracting both explicit and implicit costs from total revenue. Explicit costs are direct out-of-pocket expenditures, while implicit costs refer to the foregone revenue opportunities when money is invested elsewhere.When a company achieves zero economic profit, it indicates that the revenue obtained is precisely sufficient to compensate for the production's total expenses and the value of the next best option. The value of a firm's next best option is its implicit cost, which may or may not be expressed in dollars. If the total revenue is precisely equivalent to total expenses, including the implicit costs, there is no economic profit made by the company, but it is still covering all of its expenses.

Therefore, the firm will not be forced to shut down because of this. Likewise, if a company is experiencing constant losses, it should eventually shut down, while if it's continually generating an economic profit, it will thrive.

However, if a firm is incurring a loss, but the revenue is enough to compensate for all of the expenses, it should continue running to cover those costs.

inlace3774

11.03.2023

Business

High School

Economic profit is ______________ accounting profit.

shreyapq7

Economic profit is less than accounting profit. Economic profit refers to the net income of a company that is received after accounting for all of the expenses and associated costs.

The economic profit of a business is calculated by subtracting the explicit costs and implicit costs from the total revenues. Economic Profit = Total Revenue - Explicit Costs - Implicit Costs. Accounting profit is the net income of a company that is calculated by subtracting the explicit costs from the total revenue. Accounting profit only takes into account the direct expenses of a business, such as wages, raw materials, rent, and other expenses. Accounting Profit = Total Revenue - Explicit Costs. Therefore, Economic profit is less than accounting profit.

For more such questions on Economic profit

brainly.com/question/15867127

#SPJ11

A perpetuity will pay $200 every six months beginning six months from today. If the interest rate is 12% APR, what is the value of this perpetuity today? 1 (round to the nearest dollar) Answers 1-1 1.

Answers

The value of this perpetuity today is $3,333.

To calculate the value of a perpetuity, we can use the formula:

Value = Cash Flow / Interest Rate

In this case, the perpetuity pays $200 every six months, so the cash flow is $200. The interest rate is given as 12% APR, which stands for Annual Percentage Rate.

To calculate the value, we need to adjust the interest rate to match the cash flow period, which is every six months. Therefore, the interest rate per period would be half of the APR, which is 6%.

Now we can calculate the value of the perpetuity:

Value = $200 / 0.06

Value ≈ $3,333.33

Rounding to the nearest dollar, the value of this perpetuity today is $3,333.

It's important to note that the perpetuity formula assumes constant cash flows continuing indefinitely and a constant interest rate. In practice, these conditions may not hold, and the value of a perpetuity may be subject to change based on market conditions and other factors.

for more such questions on perpetuity

https://brainly.com/question/24261067

#SPJ11

A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a 20-year life; four paved ditches costing $3 per foot each; and four box culverts every mile, each costing $10,000 and having a 20-year life. Annual maintenance will cost $1,600 per mile; the culverts must be cleaned every five years at a cost of $400 each per mile. Design B calls for a bituminous pavement costing $55 per foot with a 10-year life; four sodded ditches costing $1.40 per foot each; and four pipe culverts every mile, each costing $2,100 and having a 10-year life. The replacement culverts will cost $2,450 each. Annual maintenance will cost $2,600 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile; and the annual ditch maintenance will cost $1.55 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of AW and PW if the MARR is 12% per year.

Answers

Design B is the most cost-effective design based on AW and PW since it has a lower negative value, indicating a lower cost over a 20-year period than Design A.

A design

The cost of concerete pavement is $90 multiplied by 5280.

The cost of concerete pavement is $475,200.

$ 3 X 5280 = cost of each paved ditch

$ 15,840 for each paved ditch

$ 31,680 for two paved ditches

The cost of three box culverts every mile is $9000 multiplied by three.

$ 27,000 for three box culverts every mile

Concrete pavement total cost in year 0 = $475,200 + $31,680 + $27,000

The total cost of concrete pavement in year zero is $533,880.

$ 1800 for annual maintenance

Annual upkeep in year 5 = $1,800 + 450 ($2,250).

B design

Pavement cost for plan B = $ 45 X 5280

Pavement cost for plan B = $237,600

Sodded ditch cost = $ 1.50 X 5280

The cost of sodded ditches is $7,920.

$ 15,840 for two sodded ditches

The cost of three pipe culverts is $ 2,250 multiplied by three.

Three pipe culverts cost $6,750.

Culvert replacement cost = $ 2400 X 3

Culvert replacement costs $7,200.

$ 2,700 for annual maintenance

Culvert cleaning costs $ 225 multiplied by three.

Culvert cleaning costs $675.

$ 1.50 X 5280 = yearly ditch upkeep

$ 7,920 for annual ditch maintenance

Bituminous pavement initial cost = $237,600 + $7,920 + $6,750

$ 252,270 for the initial cost of bituminous pavement

Annual maintenance cost = $ 2700 + $ 225 + $ 1.50 X 5280

Annual maintenance cost = $10,845

Year 11 cost = $237,600 + $7,920 + $2400 x 3 (cost of education) = $252,720.

design cash flow equation A worth equivalent = $ 533,880 (A/P, 6%, 20 years) + $ 1800 + $ 2,250 (P/A, 6%, 20 years).

Design B equivalent worth = $ 252,270 (A/P, 6%, 20 years) + $ 10,845 + $ 252,720 (P/A, 6%, 20 years)

To know more about equivalent worth:

https://brainly.com/question/32625321

#SPJ4

what is identity management? enforces business rules vital to an organization's success the practice of gathering data and ensuring that it is uniform, accurate, consistent, and complete a broad administrative area that deals with identifying individuals in a system and controlling their access to resources within that system a company's examination of its data to determine if the company can meet business expectations and to identify possible data gaps

Answers

Identity management is a broad administrative area that deals with identifying individuals in a system and controlling their access to resources within that system.

In today's dynamic business world, identity management has become one of the most important aspects of any business or organization as it provides a way to manage user identities, authenticate users, and control access to applications, systems, and data. Identity management has many benefits, including:

Improving security and compliance Reduction of manual effort, thus reducing operational costs Centralization of user management and access management Therefore,  identity management refers to a broad administrative area that deals with identifying individuals in a system and controlling their access to resources within that system.

To know more about administrative visit:-

https://brainly.com/question/15022173

#SPJ11

What could be done to mitigate bias in interest
representation?

Answers

Main answerTo mitigate bias in interest representation, several things could be done. Here are some ways to minimize bias in interest representation:1. Increasing diversity in representation: People of different genders, ages, races, and cultures should be included in the decision-making process. Turbulence: As liquid metal is being poured into a mold, there are irregular and inconsistent changes in the flow's speed and direction.

To ensure that all groups are represented, organizations should create a diverse representation policy.2. Fair recruitment practices: Organizations should make sure that recruitment procedures are equitable, inclusive, and transparent to ensure that they are not biased.3. Using technology: To eliminate human error and bias, organizations should use technology to analyze data and make decisions based on the facts. This can assist in preventing any sort of bias that may have been unintentionally or purposely incorporated into decision-making.4. Offering education and training: Organizations should offer education and training to their staff to make sure they are aware of implicit bias, discrimination, and prejudice.

This will allow them to identify and rectify any biases that may arise in their thinking.5. Collecting feedback: By collecting feedback, organizations can determine if there are any biases in their decision-making process. This feedback can then be used to improve the process. These strategies include increasing diversity in representation, fair recruitment practices, the use of technology to analyze data, offering education and training to staff, and collecting feedback.

To know more about turbulence visit:

brainly.com/question/11443433

#SPJ11

Suppose you are told that the capital stock is growing at 5 percent per year for the U.S. The labor force is growing at one percent. Then, capital per worker is growing at 2 percent 6 percent -2 percent. 4. We do not have enough information.

Answers

It can be concluded that the capital per worker is growing at a rate of 4 percent. Therefore, the correct answer is 4.

Given that the capital stock is increasing at a rate of 5 percent per year for the U.S. economy, while the labor force is growing at a rate of one percent, the rate at which capital per worker is growing is 4 percent. The growth rate in capital per worker is calculated using the following formula: growth rate in capital per worker = growth rate in capital stock - growth rate in labor force. The formula for calculating the growth rate in capital per worker is: growth rate in capital per worker = growth rate in capital stock - growth rate in labor force. This is represented mathematically as: growth rate in capital per worker = 5% - 1%growth rate in capital per worker = 4%. Thus, it can be concluded that the capital per worker is growing at a rate of 4 percent. Therefore, the correct answer is 4.

To know more about economy visit:

https://brainly.com/question/30131108

#SPJ11

Sales​ reports, call​ reports, and expense reports are all used in the process of​ __________ salespeople.
A. selecting
B. evaluating
C. motivating
D. training
E. supervising

Answers

Sales reports, call reports, and expense reports are all used in the process of evaluating salespeople. The correct option is B. Evaluating.

What are Sales reports?

Sales reports refer to the records of sales and revenue generated over a given period of time. They may also include information on the number of units sold, returns, and the overall profitability of a sales operation. Sales reports can be used to assess the performance of sales staff, identify sales trends, and create sales forecasts.What are Call reports?A call report is a record of phone calls made or received. These reports may include information such as the time and duration of calls, the parties involved, and the purpose of the call. They can be used to track communication with customers, monitor customer service, and evaluate the effectiveness of sales staff.What are Expense reports?Expense reports refer to the record of expenses incurred by a business or individual. These may include receipts for meals, travel expenses, office supplies, and other costs related to business operations. Expense reports can be used to track spending, manage budgets, and identify areas for cost-saving measures.In the context of salespeople, sales reports, call reports, and expense reports can be used to evaluate the performance of sales staff. By analyzing these reports, sales managers can identify areas where sales staff may need additional training, coaching, or incentives to improve their performance.

know more about Sales reports.

https://brainly.com/question/31554644

#SPJ11

A company has an accounts receivable turnover of 10 times. The average net accounts receivable during the period are ¥700,000,000. What is the amount of net credit sale? Cannot be determined from the information given O ¥70,000,000 O ¥7,000,000,000 O 700,000,000

Answers

The amount of net credit sale is ¥7,000,000,000.. Option C is the correct answer.

The accounts receivable turnover ratio is calculated by dividing net credit sales by the average net accounts receivable. In this case, we are given the accounts receivable turnover ratio (10 times) and the average net accounts receivable (¥700,000,000). By rearranging the formula, we can calculate the net credit sales.

Net Credit Sales = Accounts Receivable Turnover Ratio * Average Net Accounts Receivable

Net Credit Sales = 10 * ¥700,000,000

Net Credit Sales = ¥7,000,000,000

Therefore, the amount of net credit sales is C: ¥7,000,000,000.

You can learn more about credit sale at

https://brainly.com/question/4068271

#SPJ11

A company sells merchandise on account for $350 that is subject to a sales tax of 5%. Which of the following is true?
a. Accounts receivable and Sales revenue are both increased by $378
b. Accounts receivable and Sales revenue are both increased by $322
c. Accounts receivable is increased by $378, Sales revenue is increased by $350, and Sales tax payable is increased by $28
d. Cash is increased by $378 and Sales tax payable is increased by $28

Answers

The correct answer is; Accounts receivable will be increased by $378, Sales revenue is increased by $350, and Sales tax payable will be increased by $28. Option C is correct.

When merchandise is sold on account for $350 subject to a sales tax of 5%, the following journal entries are recorded:

Debit Accounts Receivable: $350

Credit Sales Revenue: $350

This entry records the increase in accounts receivable (the amount owed by the customer) and the increase in sales revenue.

Debit Sales Tax Payable: $28

Credit Sales Revenue: $28

This entry records the sales tax amount that the company collects from the customer on behalf of the government. Sales tax payable is the liability account which represents the amount owed to the government.

The total amount of the journal entries is $378 ($350 for accounts receivable and $28 for sales tax payable), which represents the increase in the company's assets (accounts receivable) and revenue (sales revenue) as well as the liability (sales tax payable).

Hence, C. is the correct option.

To know more about Sales revenue here

https://brainly.com/question/29728874

#SPJ4

What is the maximum profit to be made from selling a call
option?
A. Unlimited gains
B. The premium
C. The expiry price
D. Strike price plus premium

Answers

The correct answer is A. Unlimited gains.

When you sell a call option, you receive a premium from the buyer of the option. As the seller, you have an obligation to sell the underlying asset at the strike price if the buyer exercises the option. However, as the option seller, your potential profit is not limited to the premium received.

If the price of the underlying asset increases significantly, the buyer may choose to exercise the option, and you would be required to sell the asset at the strike price. In this case, your profit would be the difference between the strike price and the market price of the asset, which can be unlimited. Therefore, the maximum profit to be made from selling a call option is unlimited gains.

To know more about profit visit-

brainly.com/question/30009410

#SPJ11

A manufacturing company uses the weighted-average method in its process costing system. Operating data for the first processing department for the most recent period appear below for the number of units, direct material (DM) costs, and conversion costs (CC). Production data: % of % of Units completion completion (DM) (CC) Beginning work in process (WIP) inventory 1,200 20% 50% Started into production during the period 12,000 Ending WIP inventory 1,000 60% 80% Cost data: Beginning WIP inventory Cost added during the period OM $13,800 $31.000 CC $25,800 $58.700 Q. Under the weighted average method, what is the total cost of ending work in process inventory? ANS. $ Q. Under the weighted-average method, what is the total cost of units transferred out? ANS. $

Answers

1. Total cost of ending work in process(WIP) inventory under the weighted-average method: The total cost of ending work in process inventory is $7,900. 2. Total cost of units transferred out under the weighted-average method: The total cost of units transferred out is $101,120.

Under the weighted-average method, the total cost of ending work in process (WIP) inventory is calculated by determining the cost per equivalent unit for each cost category (direct materials and conversion costs) and multiplying it by the number of units in the ending WIP inventory.

To calculate the cost per equivalent unit, we add the costs incurred during the period to the costs in the beginning WIP inventory and divide it by the equivalent units of production during the period. In this case, the DM cost per equivalent unit is $2.85 and the CC cost per equivalent unit is $7.05. Adding these two costs gives a total cost per equivalent unit of $7.90.

The number of units in the ending WIP inventory is given as 1,000. Multiplying the number of units in the ending WIP inventory by the total cost per equivalent unit gives us a total cost of $7,900 for the ending WIP inventory.

Similarly, to calculate the total cost of units transferred out, we need to determine the equivalent units of production during the period. This is done by adding the units completed and transferred out to the ending WIP inventory units multiplied by the percentage of completion. In this case, the equivalent units of production during the period are 12,800. Multiplying this by the total cost per equivalent unit gives us a total cost of $101,120 for the units transferred out.

Therefore, under the weighted-average method, the total cost of ending work in process inventory is $7,900, and the total cost of units transferred out is $101,120.

To know more about WIP click here:

https://brainly.com/question/32418270

#SPJ11

Excellent (lowest price, lowest percentage of defects) = 5, good (second lowest price, second lowest percentage of defects, 95% on-time delivery) = 4, average (highest price, 90% on-time delivery) = 3, fair (80% on-time delivery) = 2, poor (defect rate 10% or higher) = 1.

Hint: Do not forget to cross-multiply the performance ratings with their respective weights to calculate the total score.

Answers

By utilizing this rating system, business can make informed decisions based on a supplier's performance in terms of price, defect rate, and on-time delivery, thus ensuring a more efficient and reliable supply chain.

The rating system provided evaluates suppliers based on multiple factors, including price, percentage of defects, and on-time delivery. The scale ranges from excellent to poor, with corresponding numerical values assigned to each category.An excellent rating (5) signifies the supplier with the lowest price and the lowest percentage of defects. This supplier offers the best combination of affordability and product quality, making them highly desirable.A good rating (4) is assigned to the supplier with the second lowest price and second lowest percentage of defects. Additionally, this supplier demonstrates a 95% on-time delivery rate, which adds to their overall value.An average rating (3) represents a supplier with the highest price among the evaluated options but maintains a reasonable 90% on-time delivery rate. While they may not excel in terms of affordability, their reliability in meeting delivery deadlines is considered acceptable.A fair rating (2) is given to a supplier with an 80% on-time delivery rate. Though they may have room for improvement, they do not exhibit major flaws in their performance. Lastly, a poor rating (1) is assigned to suppliers with a defect rate of 10% or higher. This indicates that their products have a high likelihood of having issues, making them the least desirable option.

For more such questions on business

https://brainly.com/question/24553900

#SPJ11

True/False: 17. In the short run, macroeconomics focuses on the business cycle, and in the long run, macroeconomics focuses on long-run economic growth. T F 18. Long-run economic growth is measured by

Answers

The statement "In the short run, macroeconomics focuses on the business cycle, and in the long run, macroeconomics focuses on long-run economic growth" is true.

Macroeconomics is a branch of economics that studies how an economy behaves as a whole, especially with regard to issues like inflation, unemployment, and economic growth, among other things.In the short run, macroeconomics focuses on the business cycle because business cycles are typically measured over a shorter period of time (one to three years), and this approach enables economists to assess how a particular economy is doing in the short run.In contrast, macroeconomics focuses on long-run economic growth in the long run, which is typically measured over a more extended period of time (five to ten years or more). Long-term economic growth, on the other hand, relates to a more sustained and continuous increase in an economy's output over an extended period of time.

18. Long-run economic growth is measured by increases in a country's real gross domestic product (GDP) over time. GDP is a measure of a country's economic performance that includes all of the goods and services produced within its borders over a specified period. When a country's GDP grows, it usually indicates that the country is experiencing economic growth.

To know more about economic growth refer to:

https://brainly.com/question/30280812

#SPJ11








4) What is the relationship between Santa Claus and Coca Cola, Why did Santa Claus appear in Coca Cola commercials? (25 points)

Answers

Santa Claus and Coca-Cola are intertwined because Coca-Cola contributed to the development of the modern-day Santa Claus image and has portrayed him in their Christmas commercials.

The relationship between Santa Claus and Coca-Cola is that Coca-Cola contributed to the development of the modern-day Santa Claus image. Santa Claus, who was created in the United States in the late 1700s, was portrayed in a variety of ways. For starters, he was a tall and skinny man who wore a number of colors, including green, blue, and red.

Coca-Cola, which was founded in 1892, took advantage of Santa Claus's popularity by portraying him in their commercials. Santa was initially portrayed wearing a range of clothing, but by the 1920s, Coca-Cola had put their mark on him.

To know more about development  visit:-

https://brainly.com/question/29659448

#SPJ11


The marketing return on investment of a company is 125%. The
marketing and sales expenses come up to $5 million. Calculate the
net marketing contribution for this company

Answers

Given that the marketing return on investment of a company is 125%. The marketing and sales expenses come up to $5 million.

To calculate the net marketing contribution for this company we have to determine what is marketing return on investment. The marketing return on investment (MROI) is the profit that a company earns on its marketing investment. This metric provides insight into how effective the company is at converting marketing dollars into revenue.

The formula for marketing return on investment is:

MROI = (Revenue from Marketing – Marketing Cost) / Marketing Cost

Given that MROI = 125%

Marketing and sales expenses = $5 million

We can use the formula for MROI to find out revenue from marketing.

MROI = (Revenue from Marketing – Marketing Cost) / Marketing Cost125%

= (Revenue from Marketing – $5 million) / $5 million1.25 × $5 million

= Revenue from Marketing $6.25 million = Revenue from Marketing

The net marketing contribution for this company is equal to the revenue generated by marketing minus marketing and sales expenses.

Hence,

Net marketing contribution = Revenue from Marketing - Marketing, and sales expenses

= $6.25 million - $5 million

= $1.25 million.

To know more about investment refer to:

https://brainly.com/question/29547577

#SPJ11

5A.PLEASE DO NOT COPY AND PASTE. I NEED OPINIONS. IF YOU HAVE
CITATIONS, EVEN BETTER. SO I CAN DO FURTHER READING.
discussing the relationship between outcome measures and quality
of healthcare.
1.Wha

Answers

Outcome measures are important indicators that assess the effectiveness and quality of healthcare services provided to patients. They help evaluate the results and impact of healthcare interventions, treatments, and procedures on patient health outcomes. By measuring and analyzing outcomes such as patient survival rates, functional status improvement, patient satisfaction, and adherence to treatment, healthcare providers can gauge the quality of care delivered and identify areas for improvement.

Outcome measures are quantitative or qualitative assessments of the results achieved from healthcare interventions or treatments. These measures are crucial in evaluating the quality of healthcare because they provide objective data on the effectiveness of healthcare services in achieving desired outcomes. For example, the survival rate for a specific disease can be an outcome measure that reflects the quality of treatment provided by healthcare professionals.

By examining outcome measures, healthcare providers can identify areas where they excel or fall short and make necessary improvements to enhance patient outcomes and overall quality of care. Outcome measures also enable comparisons between different healthcare providers or systems, facilitating benchmarking and identifying best practices. Moreover, outcome measures can inform decision-making processes, resource allocation, and policy development to improve healthcare delivery and patient outcomes at the broader system level.

In summary, outcome measures play a critical role in assessing the quality of healthcare by capturing the results and impact of healthcare interventions on patient health outcomes. They provide valuable insights for healthcare providers to evaluate their performance, drive quality improvement initiatives, and enhance patient care. Additionally, outcome measures contribute to evidence-based decision-making, benchmarking, and policy development to promote overall healthcare quality and patient well-being.

You can learn more about healthcare services at

https://brainly.com/question/27741709

#SPJ11

Match the amount of equity ownership in an intercorporate investment with the accounting method that you should apply.

Group of answer choices

Passive (0-20% ownership)

[ Choose ] Consolidation Fair value method Integral Method Equity method Indirect Method

Significant Influence (20-50% ownership)

[ Choose ] Consolidation Fair value method Integral Method Equity method Indirect Method

Control (over 50% ownership)

[ Choose ] Consolidation Fair value method Integral Method Equity method Indirect Method

Answers

Passive (0-20% ownership) - Fair value method

Significant Influence (20-50% ownership) - Equity method

Control (over 50% ownership) - Consolidation

What accounting methods apply to different levels of equity ownership in intercorporate investments?

When it comes to intercorporate investments, the accounting method applied depends on the level of equity ownership. For passive investments with 0-20% ownership, the fair value method should be used. This method focuses on valuing the investment at its current fair market value. For investments with significant influence ranging from 20% to 50% ownership, the equity method is appropriate. This method allows the investor to record its share of the investee's earnings or losses and adjust the investment's carrying value accordingly.

Finally, for investments where control is exerted with ownership over 50%, the consolidation method is utilized. This method combines the financial statements of the investor and the investee, reflecting the control and overall financial position of the consolidated entity.

Learn more about equity ownership

brainly.com/question/30976147

#SPJ11

2. Which of the Principle is most important to you? Why? (5
marks-no more than 200 words)

Answers

The principles of life and success have been debated for centuries. From ancient times to the modern world, various philosophers, leaders, and scholars have proposed different principles for human development and progress.

Some of the most important principles that are valued by people worldwide include the following:

1. Integrity-

Integrity is the principle of doing what is right even when nobody is watching. It encompasses honesty, accountability, and transparency. Individuals with integrity are trustworthy, reliable, and credible. They are respected in society and hold positions of leadership and influence.

2. Perseverance-

Perseverance is the principle of never giving up. It involves being persistent, resilient, and determined in the face of challenges and setbacks. Individuals with perseverance have a strong sense of purpose and are willing to work hard to achieve their goals. They inspire others to follow their lead and create a positive impact in the world.

3. Empathy-

Empathy is the principle of understanding and sharing the feelings of others. It involves compassion, kindness, and respect for diversity. Individuals with empathy are considerate, supportive, and cooperative. They build strong relationships and create a sense of community and belonging.

4. Responsibility-

Responsibility is the principle of taking ownership of one's actions and decisions. It involves being accountable, reliable, and trustworthy. Individuals with responsibility are dependable, self-disciplined, and goal-oriented. They contribute to the success of their team and organization and earn the respect of others.

5. Creativity-

Creativity is the principle of innovation and originality. It involves using imagination, curiosity, and flexibility to find new solutions to old problems. Individuals with creativity are inventive, adaptable, and open-minded. They bring fresh perspectives and ideas to their work and inspire others to think outside the box.

In conclusion, the principle that is most important to an individual depends on their personal values, beliefs, and goals. By embodying these principles, individuals can become better versions of themselves and make a positive impact on the world.

To know more on philosophers visit:

https://brainly.com/question/715989

#SPJ11

stion will save this response. Question 12 The asset's book value is determined by deducting the residual value from its original cost. O True O False

Answers

The correct answer is False. The asset's book value is determined by deducting the accumulated depreciation from its original cost, not the residual value.

The asset's book value is determined by deducting the accumulated depreciation from its original cost, not the residual value. The book value represents the remaining value of an asset on the balance sheet after accounting for its depreciation over time. It is calculated as the original cost minus the accumulated depreciation. The residual value, on the other hand, is an estimate of the asset's value at the end of its useful life and is used in calculating depreciation expense. By subtracting the accumulated depreciation, which represents the total depreciation expense recorded since the asset's acquisition, from the original cost, we arrive at the book value, which reflects the asset's net worth on the balance sheet.

In conclusion, the statement "The asset's book value is determined by deducting the residual value from its original cost" is false. The book value of an asset is determined by subtracting the accumulated depreciation from its original cost, not the residual value.

For more such questions on residual value:

https://brainly.com/question/31164619

#SPJ11

Other Questions
help plzzzzzzzzzzzzz 4.Which properties of equality justify steps c and f?A. Multiplication Property of Equality; Division Property of EqualityB. Addition Property of Equality; Division Property of EqualityC. Subtraction Property of Equality; Multiplication Property of EqualityD. Addition Property of Equality; Subtraction Property of Equality Confidence intervals based on pivotal quantities. Let Y1, Y2, . . . , Yn follow an Exponential distribution with parameter . Note that Yn Gamma(n, n) and 2nYn 2 df=2n are both pivotal quantities. (a) Explain why both statistics are indeed pivotal quantities. (b) Construct a 95% confidence interval for using each pivot and provide interpretations. (c) Compare both intervals. Which one would you recommend using? Explain why You won $1,000,000 in the lottery and decided to invest the funds. However, you do not know much about investments and decided to visit a local investment firm to get some more information. The representative was able to tell you about the different types of investments and investment strategies.QuestionsAfter your visit to the investment firm, demonstrate your knowledge of the investment environment by answering the following questions:A. Explain the factors that will help to determine the rate of return that an investor requires on an investment.B. Discuss THREE (3) types of investments that you could engage in. Include in your discussion the benefits and drawbacks of each type of investment.C. Explain ANY TWO (2) career path that is available to persons interested in investment. GIVING BRAINLIEST!!!!!!!Enticed by the opportunity to practice their religion freely, many _________ began to move west. What was the American reaction to Haitian independence after their successful revolution?A. The North and South divided politically leading to an immediate South Carolina secession from the union.B. it led the Emancipation Proclamation freeing slaves in the rebellious states of America.C. It led to uneasiness that a slave uprising would occur on American soil so they instituted a trade embargo refusing to recognize Haiti as an independent state.D. American colonists were inspired to rise up against the control of Great Britain leading to the drafting of the Declaration of Independence identify the values of coefficient a,b,and c in the quadrant equation 5x = 4x + 7a =b =C= Venice InLine, Inc., was founded by Russ Perez to produce a specialized in-line skate he had designed for doing aerial tricks. Up to this point, Russ has financed the company with his own savings and with cash generated by his business. However, Russ now faces a cash crisis. In the year just ended, an acute shortage of high-impact roller bearings developed just as the company was beginning production for the Christmas season. Russ had been assured by his suppliers that the roller bearings would be delivered in time to make Christmas shipments, but the suppliers were unable to fully deliver on this promise. As a consequence, Venice InLine had large stocks of unfinished skates at the end of the year and was unable to fill all of the orders that had come in from retailers for the Christmas season. Consequently, sales were below expectations for the year, and Russ does not have enough cash to pay his creditors.Well before the accounts payable were due, Russ visited a local bank and inquired about obtaining a loan. The loan officer at the bank assured Russ that there should not be any problem getting a loan to pay off his accounts payableproviding that on his most recent financial statements the current ratio was above 2.0, the acid-test ratio was above 1.0, and net operating income was at least four times the interest on the proposed loan. Russ promised to return later with a copy of his financial statements.Jurgen would like to apply for a $125,000 six-month loan bearing an interest rate of 8% per year. The unaudited financial reports of the company appear below.Venice InLine, Inc.Comparative Balance SheetAs of December 31(dollars in thousands)This Year Last YearAssets Current assets: Cash $ 90.0 $ 260.0Accounts receivable, net 80.0 95.0Inventory 290.0 185.0Prepaid expenses 35.0 53.0Total current assets 495.0 593.0Property and equipment 410.0 180.0Total assets $ 905.0 $ 773.0Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 251.0 $ 135.0Accrued liabilities 35.0 40.0Total current liabilities 286.0 175.0Long-term liabilities .0 .0Total liabilities 286.0 175.0Stockholders' equity: Common stock and additional paid-in-capital 150.0 150.0Retained earnings 469.0 448.0Total stockholders' equity 619.0 598.0Total liabilities and stockholders' equity $ 905.0 $ 773.0Venice InLine, Inc.Income StatementFor the Year Ended December 31(dollars in thousands)This YearSales (all on account) $ 665.0Cost of goods sold 460.0Gross margin 205.0Selling and administrative expenses: Selling expenses 63.0Administrative expenses 112.0Total selling and administrative expenses 175.0Net operating income 30.0Interest expense Net income before taxes 30.0Income taxes (30%) 9.0Net income $ 21.0Required:1a. Based on the above unaudited financial statement of the current year calculate the following. (Round your answers to 2 decimal places.)Current ratio Acid-test ratio Number of times of the net operating income to the interest on the proposed loan 1b. Based on the statement made by the loan officer, would the company qualify for the loan? (Yes/No) 2.Last year Jurgen purchased and installed new, more efficient equipment to replace an older heat-treating furnace. Jurgen had originally planned to sell the old equipment, but found that it is still needed whenever the heat-treating process is a bottleneck. When Jurgen discussed his cash flow problems with his brother-in-law, he suggested to Jurgen that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $120,000. The bank does not require audited financial statements.a. Calculate the follwing if the old machine is considered as inventory. (Round your answers to 2 decimal places.)Current ratio Acid-test ratio b. Based on the 2a above would the company qualify for the loan? (Yes/No)c. Calculate the following if the old machine is sold off. (Round your answers to 2 decimal places.)Current ratio Acid-test ratio d. Based on the 2c above would the company qualify for the loan? (Yes/No) Emily Dickinson is known for giving animals and objects human qualities in her poetry. In which line does she give the robin, a bird, human-like characteristics? The robin is the one With her cherubic quality When March is scarcely on which of the following services allows users to save by purchasing a one-year or three-year contract, and users are then billed monthly at a reduced amount? A child pulls a sled up a snow-covered hill. The child does 504 J of work on the sled. If the child walks 15 mup the hill, how large of a force must the child exert? Describe a real-world object that can be measured using two different units (computer, table, book, etc.).Now think of two different units of measurement you could use to measure that object.Which unit of measurement would you need more of to measure the object? Why? in one to two sentences, explain how using a variety of sentence types improves a story. On 1 July 2021 Stephano Ltd grants 100 options to each of its 70 employees conditional on the employee remaining in service over the next three years. The fair value of each option at the grant date is estimated to be $11. Stephano also estimates that 12 employees will leave over the three year vesting period.By 30 June 2022 4 employees have left and the entity estimates that a further 10 employees will leave over the next two years.On 1 July 2022 Stephano decided to reprice its share options, due to a fall in its share price over the last 12 months. At the date of repricing, Stephano estimates that the fair value of each original option is $3 and the fair value of each repriced option is $9.During the year ended 30 June 2023 a further 5 employees left and Stephano estimates that another 3 employees will leave during the next year.During the year ended 30 June 2024 only 5 employees left. The share options vested on 30 June 2024.The yearly incremental remuneration expense for the year ended 30 June 2023 is:a.59933b.39400c.22000d.28767e.45200 The following budgeted information relates to a manufacturing company for next period: . Units K Production 14,000 Fixed production costs . 63,000 Sales 12,000 Fixed selling costs . 12,000 The normal level of activity is 14,000 units per period. Using absorption costing the profit for next period has been calculated as K36,000. What would the profit for next period be using marginal costing? A. K25,000 B. K27,000 C. K45,000 D. K47,000 What is the measure of the other acute angle ? A. 37B. 53C. 127D. 217 solve the integral given below for suitable using the Beta function 1 (-tg x dt = ? What does it mean for an individual or country to specialize in the production of goods or services Segment ME has a length of 13 inches and is rotated 270 counterclockwise about the origin to segment ME.What is the length of segment ME?