All categories

3 years ago

Everything else equal, an asset's value is:

Business

1 answer:

Harrizon [31]3 years ago

7 0

Answer:

The correct option is A, an asset's value is inversely related to the rate of return investors require to purchase it

Explanation:

The asset value is the initial purchase price determined by discounting the future cash flows from the asset to present values using a the required rate of return.

Ultimately, the higher the required return, the lower the present value of the investment whose price is being determined and the lower the discount the rate of return used in discounting relevant cash flows to present values the higher the present values.

You might be interested in

Nash Incorporated factored $156,000 of accounts receivable with Crane Factors Inc. on a without-recourse basis. Crane assesses a

ella [17]

Answer:

Nash Incorporated,

Dr Cash $143,520

Dr Due from Factor $9,360

Dr Loss on Sale of Receivables $3,120

Cr Accounts Receivable $156,000

Crane Factors

Dr Accounts Receivable $156,000,

Cr Due to Customer Nash $9,360

Cr Interest Revenue $3,120

Cr Cash $143,520

Explanation:

Preparation of the journal entry for Nash Incorporated and Crane Factors to record the factoring of the accounts receivable to Crane.

Nash Incorporated,

Dr Cash $143,520

($156,000-$9,360-$3,120)

Dr Due from Factor $9,360

(6%*$156,000)

Dr Loss on Sale of Receivables $3,120

(2%*156,000)

Cr Accounts Receivable $156,000,

Crane Factors

Dr Accounts Receivable $156,000,

Cr Due to Customer Nash $9,360

(6%*$156,000)

Cr Interest Revenue $3,120

(2%*156,000),

Cr Cash $143,520

($156,000-$9,360-$3,120)

8 0

3 years ago

Concord Corporation is planning to sell 500 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box o

Savatey [412]

I my be. Wrong but it be 3500. Percent box

5 0

3 years ago

Which best describes an opportunity cost?

Masja [62]

Opportunity cost is concept used in economics. It denotes the benefit of something that must be given up to acquire or achieve something else. Because of this opportunity cost is used in the decision-making process. The following best describes an opportunity cost: decision giving up an opportunity to do something else when making an . Correct answer: B

5 0

3 years ago

Read 2 more answers

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f

Ainat [17]

Answer:

1. Margin = 8%

2. Turnover = $7,500,000

3. Return on Investment = 12%

Explanation:

Sales for the year = $7,500,000

Net Operating Income = $600,000

Average Operating Assets = $5,000,000

1. Therefore, Margin = ( Net operating Income/Total Sales ) $\times$ 100 = 8%

2. Turnover = Sales for the period = $7,500,000

3. Return on Investment = Net Income/Average Operating assets

= $600,000/$5,000,000 = 12%

5 0

3 years ago

Many people dream of opening their own restaurant someday and restaurant supply houses provide easy finance options for equipmen

dsp73

<span>This is why the threat of potential entrants in this industry is so high. Because of all of the opportunities and financing plans, it is easy for someone who wants to start a restaurant to do so. The threat of potential entrants to other restaurants remains high because of new restaurants always popping up.</span>

4 0

3 years ago