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3 years ago

Is depreciation defined as spreading costs over time?

Business

2 answers:

Brut [27]3 years ago

5 0

I believe the answer is yes.

Shtirlitz [24]3 years ago

3 0

Answer:

Yes

Explanation:

<em>Depreciation can summarily be defined as spreading the cost of a tangible item over the course of the through which the item would be useful.</em>

When an item such as office furniture, electronics, etc., is purchased, the lifespan of the item is estimated and the cost is spread over the period of its lifespan. At the end of each financial period, the cost of the item for the period is removed from the value of the item and the new value is input into the balance sheet.

Correct answer: yes.

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AllCity, Inc., is financed 39 % with debt, 11 % with preferred stock, and 50 % with common stock. Its cost of debt is 6.1 %,

elena-14-01-66 [18.8K]

Answer:

Cost of debt (Kd) = 6.1%

Cost of preferred stock = <u>Dividend paid</u>

Current market price

= $2.53

$33

= 0.0767 = 7.67%

Risk-free rate (Rf) = 2.2%

Beta (β) = 1.11

Market risk premium (Rm - Rf) = 6.7%

Cost of equity (Ke) = Rf +β(Rm - Rf)

Cost of equity (Ke) = 2.2 + 1.11(6.7)

Cost of equity (Ke) = 9.637%

WACC = Kd(D/V)(1-T) + Kp(P/V) + Ke(E/v)

WACC = 6.1(39 /100)(1 -0.35) + 7.67(11/100) + 9.637(50/100)

WACC = 1.55 + 0.84 + 4.82

WACC = 7.21%

Explanation:

In this case, cost of debt has been given. Cost of preferred stock is calculated as current dividend paid divided by current market price.

Cost of equity is calculated based on capital asset pricing model, which is Risk-free rate plus beta multiplied by the market risk premium.

WACC equals after-tax cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure plus cost of equity multiplied by proportion of equity in the capital structure.

4 0

4 years ago

Chaco Company’s trial was in balance at the end of the period and showed the following accounts: Accounts Payable 25,200 Cash 40

Alecsey [184]

Answer:

$92,400

Explanation:

Balance of the credit column on Chaco’s trial balance.

The Total credit column balance will be:

Accounts payable $25,200

Common Stock $21,200

Notes payable $46,000

We are going to add them up

Hence:

Total credit balance =

$25,200 + $21,200 + $46,000

Total credit balance = $92,400

5 0

3 years ago

The Bureau of Transportation Statistics Omnibus Household Survey is conducted annually and serves as an information source for t

sasho [114]

Answer:

a) For this case we have quantitative data since we have frequencies per each category.

b) For this case is better use percentages since we have frequency counts per each

c) First we need to calculate the total for the frequencies:

$Total = 44+130+165+741= 1080$ respondents

For this case we can calculate the percentage like this:

$\% Strongly_{agree} = \frac{44}{1080} *100 =4.07\%$

d) For this case the percentage of people who agree with allowing drivers of motor vehicles to talk on a hand-held cell phone while driving is just 4.07% and by the other hand the rest of the people correspond to 95.93%.

$\frac{1036}{44}=23.55$

The people who are NOT strongly agree is about 24 times greater than the peopl who strongly agrees.

So we can say that we don't have a general support for the claim.

Explanation:

For this case we have the following data given:

Number of respondents that they strongly agree with the statement = 44

Number of respondents that they somewhat agree with the statement = 130

Number of respondents that they somewhat disagree agree with the statement = 165

Number of respondents that they strongly disagree agree with the statement = 741

Part a

Do the responses for this statement provide categorical or quantitative data?

For this case we have quantitative data since we have frequencies per each category.

Part b

Would it make more sense to use averages or percentages as a summary of the responses for this statement?

For this case is better use percentages since we have frequency counts per each category so then not makes sense calculate averages for this case.

Part c

What percentage of respondents strongly agree with allowing drivers of motor vehicles to talk on a hand-held cell phone while driving?

First we need to calculate the total for the frequencies:

$Total = 44+130+165+741= 1080$ respondents

For this case we can calculate the percentage like this:

$\% Strongly_{agree} = \frac{44}{1080} *100 =4.07\%$

Part d

For this case the percentage of people who agree with allowing drivers of motor vehicles to talk on a hand-held cell phone while driving is just 4.07% and by the other hand the rest of the people correspond to 95.93%.

$\frac{1036}{44}=23.55$

The people who are NOT strongly agree is about 24 times greater than the peopl who strongly agrees.

So we can say that we don't have a general support for the claim.

8 0

3 years ago

Darcy is 45 years old, single, and a u.s. citizen with a valid social security number. she had $45,000 in wages. during

Effectus [21]

So Whats the question ? Could you be more specific .

8 0

3 years ago

HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for smal

IrinaK [193]

Answer:

d. All of these explanations could be relevant.

Explanation:

Change in demand for small luxury condominiums, from large single family homes could be : due to any of these three reasons - changing 'taste & preferences' of people

Increase in senior citizen (old parents) , whose children have moved away from home. So, they might feel settling in community apartments better rather than full lonely homes (without children)
Urban area aged people tend to have higher income & financial base for purchasing luxury condominiums

6 0

3 years ago