Answer: Depreciation is tax deductible
Explanation:
Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.
Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.
<span>Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.</span><span />
Answer:
20%
Explanation:
Return on assets is a profitability ratio that shows how much in net income a company is able to generate from its assets.
It is a financial measure that shows the net profit a company is able to generate per $1 invested in assets.
Mathematically,
Return on asset = net income/average total asset
= $800,000/$4,000,000
= 0.2
= 20%
This means that the company's management is a to generate a net income of 20 cents for every $1 invested in assets.
Answer:
the scope statement; deliverables
Explanation:
"Decomposing" a project will ensure an efficient way of accomplishing the project's goal. Before doing this, it is important to know what "the scope statement" is and the "deliverables" (multiple tasks in the production).
"The scope statement" allows one to know what should be included in the decomposition. It also tells <em>when you are going to stop breaking down </em>and what tasks are to be included. Once you know this, it<em> becomes easier to decompose a projec</em>t with<u> one deliverable at a time.</u> The scope will also be further clarified.
So, this explains the answer.
Answer:
48.00%
Explanation:
For computing the debt to capital ratio, first we have to determine the equity value and debt value which is shown below:
Equity value = Number of outstanding shares × stock price per share
= 5.2 million shares × $12
= $62.4 million
We know,
Total capital = Debt + equity
$120 million = Debt + $62.4 million
So, the debt would be
= $120 million - $62.4 million
= $57.6 million
Now the debt to capital ratio would be
= $57.6 million ÷ $120 million
= 48.00%
