Answer:
Option 4 Building is the most valuable asset owned by Riya
Explanation:
The reason is that the asset lowers the breakeven point and also helps to increase the profit by offering at lower prices than the competitor to increase the product demand and earn more by increased demand (Demand and price relationship application). So the most valuable asset from the business perspective is building owned by Riya.
Answer:
≅ 21.8%
Explanation:
The Return on Equity can be calculated by ,
ROE = Net Profit Margin × Return asset × Financial leverage
Net profit margin = Profit margin = 12%
Return Asset = Total Asset turnover = 1.4
Financial leverage = Equity Multiplier = 1.3
Therefore,
ROE = 12 × 1.4 × 1.3
= 21.84% .
Answer:
Explanation:
Given information
Number of shares owned = 200 shares
Split ratio = 2 for 1
Number of additional shares = 200 shares
The additional shares would get when the investor received the new certificate which specifies the additional shares plus the old certificate is also with the investor which decreased the par value of each share.
It is a cheaper method as compare to cancel the shares plus issuing them
Answer:
The correct answer is letter "B": unfavorably; increases.
Explanation:
As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to <em>increase </em>the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -<em>continuous increase in price due to continuous increase in demand</em>- appear decreases.
However, if people have fewer sources of debt, private investment decreases, causing an <em>unfavorable </em>panorama for financial institutions offering large portfolios of assets.
Answer: Statement D
Explanation: Qualitative characteristics are those characteristics the values of which cannot be calculated appropriately and the one that cannot be recorded in the books as they do not have any quantitative value.
In the given problem cost of machine at which it is purchased is its value, Depreciation is the value of original cost which has been used and amount at which the machine used can be sold is its value.
Hence among all the options Option D shows qualitative characteristics.