Answer:
c. as a deduction from Stockholders’ Equity
Explanation:
The treatment of the treasury stock in the balance sheet is that it is deducted from the stockholder equity as it shows the buy back position of the common stock
The other things i.e retained earnings, additional paid in capital is to be added as it increased the balance of the stockholder equity
Therefore in the given case, the option C is correct
Answer:
True
Explanation:
The profit margin calculation is shown below:
= (Net income ÷ net sales) × 100
= ($130,500 ÷ $1,740,000) × 100
= 7.5%
We simply divide net income by net sales in order to achieve the gross profit margin. This indicates a correlation between net income or net income and net sales.
All other information provided is irrelevant. Therefore, it was ignored
Answer: For a competitive market, <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>
Explanation:
A perfectly competitive market has the following characteristics:
(a). In this particular market there are many buyers and sellers.
(b). Also each company makes similar product. i.e. the products are identical in nature.
(c). In this market buyers and sellers will have access to perfect information about price. and product.
(d). In a competitive market there are no barriers to entry into or exit from the market.
Therefore , <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>
Answer: The cost of capital for a firm with no debt in its capital structure.
Explanation:
Leverage in finance refers to the use of debt. Unlevered capital therefore would refer to capital that is without debt which means that an unlevered cost of capital is one with no debt in its capital structure.
Companies with such a capital structure derive their capital 100% from Equity and as such do not pay interest. This means however, that they will not benefit from the tax shields that interest payments offer.
Answer: The market for homes will be higher when there is increase in the amount of homes being built. In addition, the location of a house determines the cost of the house. For instance, a house located in an urban environment will cost more than the one located in a rural area. Irrespective of having the same components or features, the price will always vary.
Explanation:
Fort Myers is a commercial centre of Lee County, Florida. It is a major tourist destination in Florida. It is a metro city with job markets and a nice quality of live. Between 1994 and 2006, the prices of Fort Myers homes increased more than the rate of inflation. This is due to the quality of life and location of Fort Myers. An increase in the number of houses built increaseD the market for homes. This raised the price of houses higher than the inflation rate.
