Ask question

Ask question

All categories

Juliette [100K]

4 years ago

11

True or false: Under the specific charge-off method, a deduction for a bad debt is taken when the debt is determined to be worth

less.

1 answer:

larisa [96]4 years ago

5 0

<span>it is true that under the specific charge-off method, a deduction for a bad debt is taken when the debt is determined to be worthless. </span>

You might be interested in

When it comes to investments, does Boudreaux believe your age should dictate your risks?

Stella [2.4K]

Answer:

He believed that the risk appetite depends on every individual nature and hence has no correlation with the age of each individual.

Explanation:

Boudreaux because of his research conducted on the age and the risk appetite of each individual, depending upon the age concluded that there is no existence of any correlation between age and risk appetite. And that the risk appetite is natural thing in human behavior and is not influenced by their age.

6 0

4 years ago

why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

Archy [21]

Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.

5 0

4 years ago

Which strategic approach tends to work best when price competition among rival sellers is vigorous, the market is large, and the

earnstyle [38]

Answer: A low-cost provider strategy

Explanation:

The low-cost provider strategy is a marketing strategy where the marketer makes his product the lowest priced in a very competitive market while still being able to make profit.

The low-cost provider strategy would be the best sales strategy in a price competitive market, as it would draw most buyers to the seller.

7 0

3 years ago

We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following

mixer [17]

Answer:

The answer is "0.85 "

Explanation:

In order to locate a beta of the company, we must find the average beta of unlevered UPS and FedEx and find a levered beta of the company.

Price Outstanding shares(Billion) Market valu of equity(Billion) Market value of debt(billions) D/E Ratio

UPS 65 0.7 45.5 5 0.1099

FedEx 55 0.25 13.75 3 0.2182

$Unlevered \ beta= \frac{levered \ beta}{(1+((1- tax rate)\times(\frac{Debt}{Equity})))}$

taxes desn't matter , given in the question so, assumed to be 0

$Unlevered \ beta \ for \ UPS= \frac{0.8}{1+(1-0)\times (0.1099)}$

$= \frac{0.8}{1+(1)\times (0.1099)}\\\\= \frac{0.8}{1+(0.1099)}\\\\= \frac{0.8}{1.1099}\\\\=0.72$

$Unlevered \ beta \ for \ FedEx= \frac{1.1}{1+(1-0)\times (0.2182)}$

$= \frac{1.1}{1+(1)\times (0.2182)}\\\\= \frac{1.1}{1+(0.2182)}\\\\= \frac{1.1}{1.2182}\\\\=0.90$

$Average \ Unlevered \ beta = \frac{0.72+0.90}{2}$

$= \frac{1.62}{2}\\\\=0.81$

$\text{levered beta of the delivery service firm }= unlevered \ beta \times(1+(1-taxes) \times (\frac{debt}{equity}))$

$= 0.81 \times (1+(1-0)\times (\frac{20}{450})\\\\= 0.81 \times (1+(1)\times (0.04)\\\\= 0.81 \times (1+(0.04)\\\\= 0.81 \times (1.04)\\\\=0.85$

4 0

4 years ago

Darnell lives in an area where labor is plentiful and locations for startup are relative cheap

777dan777 [17]

Answer:

The answer is "Entrepreneurship and knowledge".

Explanation:

The situation is based on the research on beginning a firm, there two key production aspects which Darnell needs to succeed would be enterprise and expertise, based on the data supplied inside the question. He needs to learn a way to create, start-up, run a new business and get depth knowledge of both the arts.

4 0

3 years ago