Answer:
$100,340
Explanation:
<em>The amount of cost recorded in the asset account would be:</em>
List price $93,000
Less: Discount ($93,000*2%) $1,860
Add: Freight $3,800
Add: Installation&Testing <u>$5,400 </u>
Cost of the machine <u>$100,340</u>
Note: Insurance cost is not included in the cost of the machine
Answer:
the cap rate is 6%
Explanation:
The computation of the cap rate is as follows:
= Net operating Income ÷ Current market value of property
= $120,000 ÷ $2,000,000
= .06
= 6%
Hence, the cap rate is 6%
We simply divided the net operating income from the Current market value of property so that the cap rate could come
Answer:
=1.25
Explanation:
Current ratio= current asset/ current liabilities
Current ratio= $5 million./ Current Liabilities
Cross multiply we have
But current ratio is 2.0
2= 5/ current liabilities
current liabilities= 5/2
=2.5million
Quick ratio= current Asset- inventory/current liabilities
1.5=( 5- inventory)/2.5
Cross multiply we have
1.5×2.5= ( 5- inventory)
3.75= ( 5- inventory)
inventory= 5-3.75
=1.25
Therefore, the firm's level of inventories is 1.25
Answer:
a. 9,50%
b. $47.09
Explanation:
a) Discount rate on the stock
Average Risk Premium of Stock = 7.60%
Current risk-free rate = 1.60%
Discount Rate = 7.60% + 1.90%
Discount Rate = 9.50%
b) Current Price = ($41 + $2) / (1 + 9.50%)^1
Current Price = $43 / (1.0950)^1
Current Price = $43 / (1.0950)^1
Current Price = $43 / 0.91324
Current Price = $47.0851035872278
Current Price = $47.09
Note: Stock price equals the present value of cash flows for a 1-year horizon (Fv + Dividend)/(1+ Discount rate)^n
Answer:
Related diversification
Explanation:
Related diversification
As the name indicate related diversification is related to expansion of business in the same field to which it is currently working. This can be explained by one example. If any corporation are in a business of making computer parts and the very same corporation expand their business by making related articles like calculator, smart watch etc. These all are come in the related diversification.