Answer:
b. $37,500
Explanation:
a. Realized gain = (cash down payment + Purchase Note ) - Adjusted Tax basis
=(40000+ 160000)-75000
= 200000 - 75000
= 125000$
Gross profit percentage = profit /sales
=125000 / (40000 + 160000)
=125000 / 200000
=62.5%
year 1 Realised gain = downpayment * 62.5%
= 400000 *62.5%
=25,000$
Realised gain = installment payment * 62.5%
= 20000 * 62.5%
= 12,500$
i.e 37,500$
Answer:
50
Explanation:
1,500x.10x120/360 = 50 i believe?
Answer:
0.36
Explanation:
Cost of equity of 16.8%,
Pretax cost of debt of 8.1%
Return on assets of 14.5%
As per NN proposition: Cost of equity = Return on asset + D/E ratio (Return on asset-Cost of debt)
0.168 = 0.145 + D/E (0.145 - 0.082)
0.168 - 0.145 = D/E (0.064)
0.023 = D/E (0.064)
D/E = 0.023/0.064
D/E = 0.359375
D/E = 0.36
Thus, the debt-equity ratio is 0.36
Answer:
Explanation:
Identifiable costs by definition are expenses that can be identified directly with a specific facility, activity or function. Operating budgets deal with short term expenses and expenses to be incurred in the next one year. Therefore, in regard to operating budget, identifiable costs may generally include cost of inventory, cost of fixed assets like land and equipment, supporting group and the direct care group wages.
