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4 years ago

A lease versus purchase analysis should compare the cost of leasing to the cost of owning, assuming that the asset purchased

Business

1 answer:

lisov135 [29]4 years ago

4 0

Answer:

Option A) is financed with a mix of debt and equity based on the firm's target capital structure, i.e., at the WACC.

Explanation:

When the company has the WACC defined, this rate is the reference to take decision over any spend of capital, when the company make an investment it compare the rate of return of each project to this discount rate.

In this case the relative cost of lease must be equal or less than the WACC if not the lease is not an option.

On the other hand, the option of WACC it's necessary because the company must keep the capital structure as before the asset's purchase

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Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices,

ohaa [14]

Answer:

a. $19,500

b. $10,400

c. $7,448

d. $3,467

e. $3,168

Explanation:

The amounts for each cases are shown below:

a. Total amount paid equals to

= Merchandise amount - return and allowances

= $20,500 - $1,000

= $19,500

b. Total amount paid equals to

= Merchandise amount - return and allowances - discount + freight charges

= $11,400 - $1,400 - $100 + $500

= $10,400

The discount = (Merchandise amount - return and allowances) × discount rate

= ($11,400 - $1,400) × 1%

= $100

c. Total amount paid equals to

= Merchandise amount - return and allowances - discount

= $8,400 - $800 - $152

= $7,448

The discount = (Merchandise amount - return and allowances) × discount rate

= ($8400 - $800) × 2%

= $152

d. Total amount paid equals to

= Merchandise amount - return and allowances - discount + freight charges

= $3,800 - $500 - $33 + $200

= $3,467

The discount = (Merchandise amount - return and allowances) × discount rate

= ($3,800 - $500) × 1%

= $100

e. Total amount paid equals to

= Merchandise amount - discount

= $3,200 - $32

= $3,168

The discount = Merchandise amount × discount rate

= $3,200 × 1%

= $32

5 0

3 years ago

Financial institutions pay___

Dmitriy789 [7]

Answer: B

Explanation: I work for a bank.

3 0

3 years ago

Read 2 more answers

In late December youâ€‹ decide, for taxâ€‹ purposes, to sell a losing position that you hold inâ€‹ Twitter, which is listed on t

sukhopar [10]

Answer:

a. The Bid/Ask spread is $0.03.

b. The statement is “False”.

c. The Bid/Ask spread at the time trade was executed is $0.02.

d. The Total Round-Trip Transaction Costs is $107.90 and the Bid/Ask spread is $0.09. It is important to have a lower commission charge. So the correct statement is “Statement C”.

Explanation:

Please check the file attached below to see the solution to given question

7 0

3 years ago

Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equit

defon

Answer:

If the company follows the residual dividend policy, the income he must earn is $898,750

The dividend payout ratio will be 55.63%

Explanation:

In order to calculate the income must it earn we would have to make the following calculation:

income must it earn=55% equity+dividends

55% equity=$725,000*0.55

55% equity=$398,750

Therefore, income must it earn=$398,750+$500,000

income must it earn=$898,750

If the company follows the residual dividend policy, the income he must earn is $898,750.

To calculate the dividend payout ratio we would have to calculate the following formula:

dividend payout ratio=dividends paid/income must it earn

dividend payout ratio=$500,000/ $898,750

dividend payout ratio=55.63%

The dividend payout ratio will be 55.63%

4 0

4 years ago

Tendency for an insured person to overuse health services because he has insurance?

balandron [24]

Moral hazard is the tendency for an insured person to overuse health services because he has insurance.

<h3>What is Moral hazard?</h3>

If an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk is known as a moral hazard
For example, when an organization is insured, it's going to take on higher risk knowing that its insurance will pay the associated costs
When the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place, a moral hazard may occur.
Moral hazard can be considered as a type of information asymmetry, where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk and has a tendency or incentive to take on too much risk from the perspective of the party with less information.

To learn more about Moral hazard: brainly.com/question/26367615

#SPJ4

6 0

2 years ago