Answer: Higher target debt-equity ratios than firms that primarily invest in intangible assets.
Explanation:
Tangible assets can be expensive and when a company has large investments in them that usually means that they spent a considerable amount to acquire them. This is why they turn to debt because it will allow them to afford these tangible assets.
This is why companies in the airplane and electricity distributing companies have a lot of debt, they had to invest in the large amount of tangible assets needed to make planes or distribute electricity.
Answer:
<h2>In this case,Huojin is basically using Life Cycle pricing strategy.</h2>
Explanation:
- In Economics, life cycle pricing strategy basically refers to the determination of any product or service price based on the position of the concerned product or service within its life cycle.
- In this instance,Huojin decides to charge higher price for its new product as the production or manufacturing is relatively high during the initial stages of the product.
- Later on during the product life cycle,the manufacturing or the making cost of the new product gradually decreases thereby,allowing Huojin to reduce the price of the product during the subsequent stages of the its life cycle.Such type pricing strategy is known as Life Cycle pricing strategy.
Answer: Sky's effective interest rate on this loan is 8.39%.
In this question, we assume that interest is compounded annually.
Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.
Face value of the note $16 million
Discount Rate p.a 8%
Tenure of the note 7 months
[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]
So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:
From this we can work out the effective interest rate for Sky as follows:
Answer:
$50,000
Explanation:
Data provided in the question:
Interest owned by Gladys Peel in the capital and profits of the partnership = 50%
Fair market value = $10,000
Value of the land acquired = $16,000
Partnership's net income = $94,000
Loss recorded = $6,000
Now,
The loss must be separately passed through to partners as it is a Sec. 1231 loss.
Therefore,
Partnership ordinary income = $94,000 + $6,000
= $100,000
Hence,
Peel's distributive share of ordinary income from the partnership for 2019
= 50% of Partnership ordinary income
= 0.50 × $100,000
= $50,000
<span>Farmers who sell their fruit and vegetables to consumers at roadside stands or farmer's markets use a producer to consumer marketing channel.
Producer to consumer means that it goes straight from the person who produced the good or service to the hands of the consumer with no middle man. In this case, instead of going from producer to the grocery store and then to the consumer - they skipped the grocery store step. :)</span>