Answer:
$598,000
Explanation:
Calculation of the Cost of Land
Cash $200,000
Note Payable $375,000
Legal fees $6,000
Delinquent taxes $4,100
Fees to Remove Old Building $15,500
Proceeds from Savages ($2,600)
Total $598,000
Therefore,
The cost of the land to be reported on the balance sheet is $598,000
Answer:
The correct answer is option a.
Explanation:
The law of comparative advantage states that a country should produce and export that product in which it experiences comparatively lower opportunity costs. The countries will be said to be specializing in the production of goods and services that they can produce at a relatively lower opportunity cost.
If two countries produce and exchange the goods they specialize in, they will be able to jointly produce more and consume more than they could individually.
Answer:
1,875 units.
Explanation:
Break-even is the point where a company neither generate profit not make loss, or we can say that it the sales at which the operating profit will be zero. It can be calculated for sales volume as-well-as dollar sales. Let's prepare a contribution income statement to calculate the break-even sales in quantity. We know that:
EBIT / Operating Profit = (SP * Q) - (VC * Q) - Fixed Cost
where
SP = Selling Price
Q = Quantity / Units
VC = Variable cost
As it is understood that the operating profit at break-even is zero, simply put it in the above contribution income statements along with other figures given in the question.
⇒ 0 = (20 * Q) - (12 * Q) - 15,000
OR 15,000 / (20 - 12) = Q
⇒ Break-even units = Q = 1,875 units.
Answer:1. Executive airplanes
2. Brand names
3. Bonds
4. Investment or capital budgeting
5. Financing
Explanation:
Companies properties consist of assets with physical attributes called tangible such land and those without physical attributes refers to as intangible assets such goodwill, trade marks etc, firms can raise capital by selling bonds which is a debt equity or selling stocks which is a proprietary equity, decision on buying or spending or capital project is called investment or capital budgeting decision and the mode of raising money for expenditures is called financing decisions.
Answer:
The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.
The correct answer is B
Explanation:
A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.
A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.
A stock with a beta of 0.74 does not provide the highest risk premium.
Us treasury bill does not provide any risk premium since it is the risk-free rate.
A portfolio with a beta of 1.01 does not produce the highest risk premium.
