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MariettaO [177]
3 years ago
5

Which of the following would be an argument for using the gross cost of plant and equipment as part of operating assets in retur

n on investment computations? a. It is consistent with the conputation of net operating income, which includes depreciation as an operating expense.b. It is consistent with the balance sheet preventation of plant and equipment. c. It eliminates the age of equipment as afactor in ROI computations d. It discourages the replacement of old worn-out eqipmt because of the dramatic, advene effect on RO.
Business
1 answer:
omeli [17]3 years ago
4 0

Answer:

Correct Answer:

a. It is consistent with the computation of net operating income, which includes depreciation as an operating expense.

Explanation:

The above option is the right answer due to fact that depreciation of the equipment  is an operating expenses. Therefore, the gross cost is used as part of operating assets during computation.

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Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, th
stealth61 [152]

Answer:

5.925%

Explanation:

For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment

Given that,  

Present value = $1,050

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8%  = $80

NPER = 20 year - 1 year = 19 year

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 7.50%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.50% × ( 1 - 0.21)

= 5.925%

8 0
3 years ago
Andy, a junior in high school, is considering his options for employment following graduation. His uncle, a master electrician,
mojhsa [17]

Answer:

Andy should look and identify his field of interest before choosing a specific career path. If she has none of preferences for his career choice then se can look for other factors to select specific career path.

Explanation:

Andy's grandfather has spend his life in building trades and he is a successful person. He thinks Andy should choose same career path as he did and he can be successful too but this is not the case. The thing can be different in this era, the preferences and nature of Andy might be different from his grand father. There are many others factors which also need to be considered as the job security, learning potential in the field, progress in career, wages and pay rise, working environment and others.

3 0
3 years ago
A mutual fund in which shares are issued only when the fund is organized is called a(n) __________ fund.
nadezda [96]
The answer is closed-end.
7 0
3 years ago
To appeal to a new target market, a coffee manufacturer changed the product's package design, reformulated the coffee, began adv
Artemon [7]

Answer:

<u>Marketing mix</u>

Explanation:

Marketing mix refers to that blend of marketing factors and aspects so as to accomplish marketing goals, which is inducing customers to purchase the products coupled with customer satisfaction.

The four essential P's of marketing mix i.e essential marketing factors are, Product, price, place and promotion.

Product refers to a bundle of utilities, price being the consideration charged for the product, place refers to the markets where product is made available and promotion refers to modes of promotion such as sales promotion, advertising and publicity and other forms.

In the given case, the coffee maker serves a new target market (place), with changed product, packaging design and coffee itself (product), employing advertising price discounts and distributing new product samples at coffee shops (price and promotion).

Thus, in short , the manufacturer changed the marketing mix for his product i.e coffee.

4 0
3 years ago
​_______ agreements ensure that communications carriers exchange traffic on their networks freely.
fgiga [73]
The answer to this question is peering agreements
In peering agreement, we basically agree to an exchange of information between two internet service providers.
This type of network is utilized by a program known as torrent, which is popular for computer users that wanted to share a certain file openly to the mass.
4 0
3 years ago
Read 2 more answers
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