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Marina86 [1]
3 years ago
13

Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately, when:a. The asset is

a discrete construction project for sale or lease.b. The interest is incurred during the construction period of the asset.c. The asset is self-constructed, rather than acquired.d. All of these answer choices are correct.
Business
1 answer:
Lostsunrise [7]3 years ago
7 0

Answer and Explanation:

d. All of these answer choices are correct.

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Ramble On Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.37, and a dividend payout ratio of
Delvig [45]

Answer: 16.55%

Explanation:

Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.

From the information given, firstly, we calculate the return on equity. This will be:

= Growth rate /(1 + Growth rate) × Retention ratio

= 8% / (1 + 8%) × 46%

= 0.08/(1 + 0.08) × 0.46

= 0.08/1.08 × 0.46

= 0.08/0.4968

= 0.1610

= 16.10%

Return on equity, ROE = 16.10%

We then calculate the profit margin. This will be:

= ROE / Asset turnover × Equity Multiplier

where,

Equity Multiplier = 1 + debt-equity ratio

= 1 + 0.37 = 1.37

Profit margin = ROE / Asset turnover × Equity Multiplier

= 16.10% / {(1/1.41) × 1.37}

= 16.10% / 0.71 × 1.37

= 0.1610 / 0.9727

= 0.1655

Profit margin = 16.55%

6 0
2 years ago
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F
yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

<em>Contribution = Sales - Variable Costs</em>

where,

Sales :

Sales = $ 900,000

Number of Books Sold = $ 900,000 ÷ $50

                                      = 18,000 books

Variable Costs Calculation :

Cost of goods sold                                                           $630,000

Variable selling expenses ($5 × 18,000 books)               $90,000

Variable administrative expenses( 4% × $ 900,000)       $36,000

Total Variable Costs                                                         $756,000

Therefore,

Contribution Margin =  $756,000÷  $ 900,000

                                  = 0.84 or 84 %

7 0
3 years ago
On March 3, Cobra Inc. purchased a desk for $440 on account. On March 22, Cobra purchased another desk for $585 also on account,
alexdok [17]

Answer:

desks = 1,025

Explanation:

 440

<u>+585</u>

1,025

Notice:

We should add the cost of the two desk to get the total amount.

The debt or account payable at the moment doesn't reduce the valuation fo the desk.

The depreciation will. But we are not given with any numebr to calculate this, so we should ignore it for this assingment.

3 0
3 years ago
Which of the following requires the most education?
Svetradugi [14.3K]

Answer:

d

Explanation:

3 0
2 years ago
Read 2 more answers
If maria gets 80 utils from consuming five​ cookies, 100 utils from consuming six​ cookies, and 120 utils from consuming seven​
Klio2033 [76]

Answer:

The correct answer is 20 Utils

Explanation:

Marginal utility is the change in the utility from an increase in the consumption of a good or service.

Example of Maria

Maria gets 80 utils from consuming 5 cookies

If Maria consumes 6 cookies, The Utils change from 80 to 100. <u>This difference of 20 is called marginal utility.</u>  (100-80=20)

3 0
3 years ago
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