3. What is expressed in decimal form?<br>a. 0.58<br>b. 5.8<br>c. 1.6<br>d. 625

There are two parties in any lease contract—the lessee and the lessor. To a lessor, a lease analysis involves a capital budgetin

inn [45]

Answer:

a, b

Explanation:

It is important to note that a lessor's goal is to make a profit, thus he would be more concerned about knowing what is the value realized after subtracting the lease payments from his income taxes and any maintenance expenses that must be incurred as per the lease agreement.

In order to be cost efficient, he might as well determine the net cash outlay of the lease agreement.

4 0

3 years ago

Decision Point: Considering Alternatives Because of your inexperience, you don't know how many alternatives should be considered

Ber [7]

Answer:

The answer is stated below:

Explanation:

Select a limited number of alternatives to consider: For example, considering the top 3 alternative suppliers.

Then generate or create a list of as many as possible of alternative suppliers.

Rely on the gut in order to make a decision regarding the right number of alternatives when you feel the time is right.

Deciding or choosing the limited number of alternatives , this concept is known as the bounded rationality. For most of the businesses, this is the most realistic approach for dealing with alternatives.

5 0

3 years ago

Lent Corporation converts to S corporation status in 2018. Lent had been using the LIFO inventory method and held a LIFO invento

Licemer1 [7]

Answer:

The tax that must be added to the C corporation tax liability for the year before the S election = $49000*1/4=$12250

The rest of the three instalments of $12250 each will be paid with Lent Corporation's next three tax returns

Explanation:

FIFO Value/basis =$650000

LIFO value/basis =$510000

Difference =$140000

35% Tax =$140000*35% = $49000

The tax that must be added to the C corporation tax liability for the year before the S election = $49000*1/4=$12250

The rest of the three instalments of $12250 each will be paid with Lent Corporation's next three tax returns

7 0

3 years ago

As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting, or sustainable, growt

rjkz [21]

Answer:

Sustainable growth rate = 0.67148%

The firm maintains a constant ratio of liabilities to equity.

Explanation:

Sustainable growth rate = ROE *Plow back Ratio / (1-ROE * Plow back Ratio)

When ROE = Net Income / Total Assets

= $2,000,000/$300,000,000

= 0.00667

Plow back Ratio = 1 - (Dividend / Net Income)

= 1 - ($180,000/$2,000,000)

= 1 - 0.09

=0.91

Sustainable growth rate = ROE * Plow back Ratio / (1-ROE * Plow back Ratio)

= 0.00667 * 0.91 / (1 - 0.00667 * 0.91)

= 0.0060697 / 0.9039303

=0.0067148

= 0.67148%

Therefore, the sustainable growth rate is 0.67148%

The firm maintains a constant ratio of liabilities to equity is the correct assumption for the sustainable growth model.

3 0

3 years ago

Suppose you know that the price elasticity of demand for your product is 0.5, and you are thinking about raising your price by 8

satela [25.4K]

Answer: Option (c) is correct.

Explanation:

Given that,

Price elasticity of demand = 0.5

Percentage increase in price = 8%

Price elasticity of demand = $\frac{Percentage\ change\ in\ quantity\ demanded}{Percentage\ change\ in\ price}$

0.5 = $\frac{Percentage\ change\ in\ quantity\ demanded}{8}$

Percentage change in quantity demanded = 0.5 × 8

= 4%

Therefore, if the price rises by 8% then as a result quantity demanded decreases by 4%.

4 0

3 years ago

3. What is expressed in decimal form?a. 0.58b. 5.8c. 1.6d. 625​

3. What is expressed in decimal form?a. 0.58b. 5.8c. 1.6d. 625