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Hunter-Best [27]
3 years ago
13

Alpha Manufacturing has interest expense of $12 million, total assets of $184 million, sales of $176 million, long-term debt of

$16.4 million, and net income of $15 million. How will interest expense be recorded in the common-size income statement?
Business
1 answer:
erma4kov [3.2K]3 years ago
7 0

Answer:

0.068

Explanation:

Common size income statement in which we divide all the items with it's revenue. So, interest is $12 M, and sales is $176 M.

Dividing 12/176= 0.068

That means the interest is 6.8% of revenue. Common size is used for comparison purpose. If let's say in next year interest become 15% of revenue then company would know that it's using more debt. It's also used for comparing with competitors.  

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g 5. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is
ArbitrLikvidat [17]

Explanation:

An oligopoly can be defined as an imperfect competition market structure, it works when in an economic sector there are few companies offering a good or service, that is, the market is homogeneous and with differentiated services, as companies seek a degree differentiation to win customers.

Some characteristics of the oligopoly are: few price variations, which can affect the consumer, since there are few companies operating in the oligopolistic market, the possibilities of choice are reduced. There is also the difficulty of entry for new competitors, since there are few dominant companies in the market and we can also mention the dependence between companies in the market in which there is an oligopoly, since the actions of one will consequently affect the entire market and the companies present .

The oligopoly arises when there is an imbalance between supply and demand, which means that the active companies have greater control over the market and the prices charged.

6 0
3 years ago
Azzura is comparing different cars and believes that the sedan has a better mix of benefits in relation to price than the sports
nlexa [21]

The comparison of different cars and believes that the sedan has a better mix of benefits in relation to price is known as B2B marketing.

<h3 /><h3>What is B2B marketing?</h3>

Business-to-business (B2B) is a form of transaction between businesses, a wholesaler and a retailer.

Business-to-business is conducted between companies, instead of a company and individual consumer.

Hence, the comparison of different cars and believes that the sedan has a better mix of benefits in relation to price is known as B2B marketing.

Learn more about B2B marketing here: brainly.com/question/26506080

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4 0
1 year ago
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its ass
Anvisha [2.4K]

Answer:

1. The cost of a hard drive installed in a computer. DIRECT MATERIAL COST.

The business of the company is to make computers so when it comes to hard drives, these are fundamental parts of a computer so they will be classified as direct materials since they are directly involved in the production process.

2. The cost of advertising in the Puget Sound Computer User newspaper. SELLING COST.

Advertising is done to be able to sell gods and services so it will fall under selling costs.

3. The wages of employees who assemble computers from components. DIRECT LABOR COST.

The labor cost of those that are involved in the direct manufacture of the computer will be considered direct labor as they are directly involved in the production process.

4. Sales commissions paid to the company’s salespeople. SELLING COST.

Sales commissions are paid to encourage the salespeople to sell more so this is a selling cost as it is incurred to increase sales.

5 0
3 years ago
What is the expected constant-growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and
Viktor [21]

Answer:

8.9

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid = d0 x (1 +g)  

r = cost of equity

g = growth rate

50 = [4 x (1 +g)] / (0.18 - g)

50(0.18 - g)  = 4(1 +g)

6 0
3 years ago
When making a major purchase first determine your
netineya [11]

is your needs wants

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2 years ago
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