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olga_2 [115]
3 years ago
8

When the concept of conservation is applied to the balance sheet, it results in (

Business
1 answer:
melomori [17]3 years ago
6 0
I think the correct answer from the choices listed above is option B. When the concept of conservation is applied to the balance sheet, it results in <span>understatement of capital. Hope this answers the question. Have a nice day. Feel free to ask more questions.</span>
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Suppose 2 athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal
maxonik [38]

Answer:

player 2 is signing a better contract

Explanation:

the present value of an annuity (player 1) = annual payment x annuity factor

assuming that the interest rate is 10%

present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million

player 2's contract

the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million

4 0
3 years ago
Why should firms with promising investment opportunities strive to maintain a conservative capital structure, i.e., limited leve
Crazy boy [7]

Answer:

The answer is to assure funding for future assets.

The answer is because of lack of sufficient operating cash flow.

Explanation:

Companies with promising investments opportunity typically have valuable intangible assets whose value would decline sharply if the company would go into financial difficulty, its important for such company to maintain a financial flexibility that comes with a conservative capital structure to assure funding for future assets.

   Poor cash flow is when the income cash flow is insufficient to meet the outgoing cash flow needs of a business and this can also lead to inability to raise additional equity force.

7 0
3 years ago
30points
dmitriy555 [2]

Answer:

c

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7 0
3 years ago
  Which of the following business entities would allow you the most personal control?
Lyrx [107]
Maybe D . not sure . correct me if im wrong. 
3 0
3 years ago
Read 2 more answers
True or false, general revenue sharing grants give states the most discretion as to how to spend the money.
ioda
I think the answer is true although i'm not sure. please go back to your lesson and check, everything says there. I'm guessing you are home-schooled so just go through the lesson while doing the test, this way you will know for sure that you got everything right.
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3 years ago
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