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2 years ago

Which of the following does not represent an asset of a company?

Business

1 answer:

mariarad [96]2 years ago

3 0

Answer:

4. Amounts owed to suppliers

Explanation:

We know that

Balance sheet comprises of assets, liabilities and the stockholder equity

The assets could be classified into current asset, fixed asset, and the intangible assets

While the liabilities are also classified into current liabilities and the long term liabilities

The account receivable, equipment, supplies have come on the asset side of the balance sheet whereas the account payable or amount owed to suppliers have come on the liabilities side of the balance sheet

So, the most appropriate option is 4.

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The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of .9. The Treasury bill rate is 4%, and th

UkoKoshka [18]

Answer:

Cost of equity is 11.2%

WACC is 8.74%

Explanation:

The formula for cost of equity is given below:

Cost of equity=risk free rate+(Beta *risk premium)

risk free rate is the treasury bill rate of 4%

Beta is 0.9

market risk premium is 8%

cost of equity=4%+(0.9*8%)=11.2%

WACC=Ke*E/V+Kd*D/V*(1-t)

Ke is the cost of equity of 11.2%

Kd is the cost of debt of 5%

t is the tax rate of 40% or 0.4

E is the equity weighting of 70% or 0.7

D is the debt weighting of 30% or 0.3

V is the E+D=0.7+0.3=1

WACC=11.20% *0.7/1+(5%*0.3/1*(1-0.4)

WACC=7.84% +0.90% =8.74%

4 0

2 years ago

When Finance Director Debenditti states that she tries to draw group members out and force participation, this might cause some

morpeh [17]

Can you please anwser mine I’m doing a test

6 0

2 years ago

Jasper Company provided the following information for last year:

sdas [7]

Answer:

Explanation:

1. Jasper Company

Income Statement

Sales (280000 x $12) $3360000

Less: Cost of goods sold

Add: Direct Material $180000

Add: Direct Labor $505000

Add: Manufacturing Overhead $110000

Cost of goods sold ($795000)

Gross Profit $ 2565000

Less: Expenses

Selling expense $437000

Administrative expense $854000

Total expenses ($1291000)

Net income $1274000

Percentage of sales for each line item

Sales = 100%

Cost of goods sold: $\frac{795000}{3360000}$ x 100= 23.7%

Selling expense : $\frac{437000}{3360000}$ x 100 = 13%

Administrative expense: $\frac{854000}{3360000}$ x 100 = 25.4 %

2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.

Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.

7 0

2 years ago

The U.S. stock market has returned an average of about 9% per year since 1900. This return works out to a real return (i.e., adj

taurus [48]

Answer:

Final value= $242,726.24

Explanation:

Giving the following information:

The U.S. stock market has returned an average of about 9% per year since 1900.

This return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year.

If you invest $100,000 and you earn 6% a year on it for 30 years.

We know inflation is 3% (average), so our real interest rate is approximately 3%.

We need the final value formula:

FV= PV*(1+i)^n

FV= 100000*(1.03)^30= $242,726.24

3 0

3 years ago

What is one major disadvantage of a capital formation strategy that focuses only on high risk investments

Troyanec [42]

Answer:

It increases the chance that the investment will lose all value.

Explanation:

If you go for a risky investment, it could increase the chance of it being a waste of time and money to sum it all up. But the answer you seek is, "It increases the chance that the investment will lose all value."

8 0

2 years ago