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3 years ago

If Joanna is risk averse, then:__________.

Business

1 answer:

Rina8888 [55]3 years ago

4 0

Answer:

c. she dislikes bad things more than she likes comparable good things.

Explanation:

In business sense where this falls to place, a risk aversed person is someone who invests in stock, trades and other business with an aim to possibly minimize any form of losses in his or her tine in doing these businesses. S/he is likely or can comfortable do a business and be sure of little interest or returns rather than venturing or risking trying deals that outcomes or returns are totally uncertain to the investor. Therefore after evaluations of this kind, it is easily denoted that being a risk taker could possibly be the opposite of being risk averse.

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Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if it perma

tatyana61 [14]

Answer and Explanation:

The computation is shown below:

a. Marpor's value without leverage is

But before that first we have to calculate the required rate of return which is

The Required rate of return = Risk Free rate of return + Beta × market risk premium

= 5% + 1.1 × (15% - 5%)

= 16%

Now without leverage is

= Free cash flows generates ÷ required rate of return

= $16,000,000 ÷ 16%

= $100,000,000

b. And, with the new leverage is

= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)

= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)

= $93,750,000 + $14,000,000

= $107,750,000

5 0

3 years ago

On December 30, 2019, Whitney sold a piece of property for $85,000. Her basis in the property was $40,000, and she incurred $1,2

vlabodo [156]

Answer:

Under the installment sales method, the total contract price is $85,000

gain on the sale is $58,800 ( 85,000 + 15,000 - 40,000 - 1,200)

and the amount of gain reported in 2018 is $3,459.

6 0

3 years ago

In 20X1, Modern Property Groups collected rent revenue for 20X2 tenant occupancy. For financial reporting, the rent is recorded

vekshin1

Answer:

Debit deferred tax asset for $12,000

Debit income tax expense for $18,000

Credit income tax payable for $30,000

Explanation:

The journal entries will look as follows:

Date Account Name and Description Debit ($) Credit ($)

20X1 Deferred tax asset (w.1) 12,000

Income tax expense (w.3) 18,000

Income tax payable (w.2) 30,000

(To record income taxes at the end of 20X1.)

Workings:

w.1: Deferred tax asset = Deferred portion of the rent collected in 20X1 * Tax rate = $40,000 * 12% = $12,000

w.2: Income tax payable = Taxable income * Tax rate = $100,000 * 30% = $30,000

w.3: Income tax expense = Income tax payable - Deferred tax asset = $30,000 - $12,000 = $18,000

7 0

3 years ago

On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What amount

inn [45]

Answer:

$337.50

Explanation:

the premium on a three year policy = $1,350

premium per year = $1,350 / 3 = $450

premium per month = $450 / 12 = $37.50

Since the premium covered April to December, 9 months of insurance expense are accrued.

insurance expense for 9 months = $37.50 x 9 = $337.50

The journal entries should be:

April 1, purchase a 3 year insurance policy:

Dr Prepaid insurance 1,350

Cr Cash 1,350

December 31, accrued insurance expense:

Dr Insurance expense 337.50

Cr Prepaid insurance 337.50

8 0

3 years ago

The top managers of Promedium Inc. are creating a master budget for the company. They require a statement of the budget goals fr

Anettt [7]

Answer:

The correct answer is budget slack.

Explanation:

Budget slack occurs in a company when one or more people with budgetary responsibility create a budget that overestimates expenses and / or underestimates projected income or income.

Intentional budget slack can occur because a manager feels under the weapon to "make their numbers", often in response to previous quarters where revenues fell below projections and, more importantly, did not meet expectations of the owners or shareholders.

4 0

3 years ago