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Scrat [10]
1 year ago
12

Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:_____.

Business
1 answer:
Darina [25.2K]1 year ago
6 0

Ignoring income taxes, the annual net income amount used to calculate the Accounting Rate of Return is Average Annual Profit / Average Investment.

The Accounting Rate of Return (ARR) is the average net income which an asset is expected to generate divided by its average capital cost, and thus it is expressed as an annual percentage.

The ARR's formula is used to make capital budgeting decisions. It is used in situations where companies are deciding on whether or not to invest in an asset based on its expected future net earnings.

Hence, the Accounting Rate of Return is calculated by Average Annual Profit / Average Investment.

To learn more about Accounting Rate of Return (ARR) here:

brainly.com/question/12988548

#SPJ4

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What step is most important for sellers to focus on.
Gemiola [76]

The step that is most important for sellers is to focus on Identifying customers with lifetime value.

<h3>Who is a seller?</h3>

A seller can be regarded as the part of distribution channel that made the goods from producer to be available to consumers.

However, he must focus on Identifying customers with lifetime value.

Therefore, option C is correct.

CHECK THE COMPLETE QUESTIONS

What step is most important for sellers to focus on?

A: Keeping all customers at all cost

B: Keeping loyal customers and forgetting about the others

C: Identifying customers with lifetime value to the seller

D: Working to attract new customers regardless of the costs

Learn more about seller at:

brainly.com/question/12851463

3 0
2 years ago
The preemptive right gives current stockholders the right to purchase, on a pro rata basis, any new shares issued by the firm. T
Nady [450]

Answer:

True

Explanation:

Stockholders' preemptive rights are set by a contract clause that establishes that in case the corporation issues new stock, then a current shareholder must be given the right to buy additional shares before the stocks are sold to other investors.

The preemptive right usually gives the stockholder the right to buy new stock in the same proportion as his/her current stock ownership. For example, if an investor currently owns 2% of the company's stock, he/she will be able to buy 2% of every new set of stocks issued.

3 0
3 years ago
Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. According to Keyne
borishaifa [10]

Complete Question:

Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. to use in this According to Keynesian theory, which of the following is an appropriate discretionary fiscal policy to use in this situation?

a. A reduction in the money supply.

b. Less government regulation.

c. Increase federal spending

d. Higher taxes.

Answer:

Higher taxes is an appropriate discretionary fiscal policy to use in this situation

Explanation:

The hypothesis that Keynesian economy is said to raise demand by the government to boost production. Keynesians assume that the primary force of an economy is customer demand. As a response, expansionary monetary policy is endorsed in principle.

The British Government at that time was strongly critical of Keynes. The government reduced social security costs and increased taxation in order to balance national accounts. This did not inspire people to invest their money, left the economy unified and unwilling to rebound and return to a prosperous state. Keynes said.

Alternatively, he proposed that the government would spend more resources to boost the appetite of customers in the economy. In addition, the total economic performance will be improved, which would lead inevitably to growth and a decrease in unemployment.

6 0
3 years ago
Alpha Industries is considering a project with an initial cost of $8 million. The project will produce cash inflows of $1.49 mil
IrinaVladis [17]

Answer:

NPV = 1,003,046

Explanation:

NPV = Present value of income - investment

investment 8,000,000

1,490,000 income per year during 8 years at rate x

We need to calculate the WACC so we can know the rate

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

equity-ratio = 0.40

\frac{E}{E+D} =0.40

debt-equity ratio = 0.6

\frac{D}{E+D} =0.60

K_e= 11.27\\0.1127 \times0.40 = 0.04508

K_d = 5.61 \\0.0561\times (1-.35)\times 0.6 = 0.021879

WACC 6.69590%

Now that we achieve the rate we solve for the present value of the cash flow

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

1.49* \frac{1-(1.06959)^{-8} }{0.06959} = PV\\

PV 9,003,046

And finally get the answer

NPV 9,003,046 - 8,000,000 = 1,003,046

3 0
4 years ago
Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only on
Vika [28.1K]

Answer:

CANE COMPANY

a. total amount of traceable fixed manufacturing overhead

Alpha  =  $19*105,000   = $1,995,000

Beta  = $21*105,000   =   $2,205,000

b.  Company's total amount of common fixed expenses =

Aplha  = $18*105,000 =     $1,890,000

Beta   = $13* 105,000 =     $1,365,000

Total                           =    $3,255,000

c.  Increase in profit as result of accepting the offer = additional contribution * additional unit sold

                        = $14*13,000

                            = $182,000

additional contribution =$92 - (30 + 23 + 10 + 15)

d.  Decrease in profit = loss of contribution * unit sold

                                     = -13 *4000

                                     = ($52,000)

   loss of contribution  =  42 -( 18+ 16 +8+13)

Explanation:

3 0
4 years ago
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