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3 years ago

A decrease in the ________ will cause an increase in common stock value.

Business

1 answer:

olga_2 [115]3 years ago

3 0

Answer:

The correct answer is letter "B": required rate of return.

Explanation:

The required rate of return helps investors determine where to invest and allows them to compare their investment returns to all other choices. They can do this by taking the Risk-Free Rate of Return, Inflation, and Liquidity into account. The required risk of return is subjective and varies from investor to investor.

The lower the required risk of return implies investors are confident in the stock providing them profits which is a signal of stability of that asset that will be interpreted in an increase in the stock value.

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Innovative Products reported net income of $219,000. Beginning and ending inventory balances were $44,500 and $46,500, respectiv

andrew11 [14]

Answer:

$213,500

Explanation:

Given the information above, first, we'll determine increase in inventory

Increase inventory = Ending inventory - Beginning inventory

Increase inventory = $46,500 - $44,500

Increase inventory = $2,000

We will also calculate decrease in account payable

Decrease in accounts payable = Beginning accounts payable - Ending accounts payable

Decrease in accounts payable = $40,500 - $37,000

Decrease in accounts payable = $3,500

Therefore,

Net operating cash flows = Net income - Increase inventory - Decrease in accounts payable

Net operating cash flows = $219,000 - $2,000 - $3,5000 = $213,500

3 0

3 years ago

Read this citation for an informative essay. Davis, Victoria. Joining the Secret Service. Washington, D.C.: Free Print Press, 20

sertanlavr [38]

Answer

This citation is for a book on how to join the Federal Bureau of Investigation

Explanation

A Federal Bureau of Investigation (FBI) special agents work for the federal government and are responsible for conducting investigations according to the federal laws. The special agents are professionals responsible for analyzing a wide range of cases because investigators have skills in specific areas such as crime, accounting or engineering. Joining the secret service requires a person to obtain: a bachelor’s degree, gain work experience, complete the FBI application process, and go through the FBI Academy Training.

6 0

3 years ago

Read 2 more answers

Milano Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt–equity ratio o

algol13

Answer:

A. $516,000

B. $696,600

Explanation:

A. Calculation to to determine the value of the Company's equity

First step is to calculate the Net income

Sales1,540,000

Less: Cost of goods sold790,000

Less: General and administrative costs525,000

Less: Interest expenses53,000

Income before corporate tax 172,000

Less: Corporate tax 40% 68,800

(40%*172,000)

Net income103,200

(172,000-68,800)

Now let determine the value of the Company's equity using this formula

Value of the Company's equity

= Net income/ cost of the firm’s levered equity

Let plug in the formula

Value of the Company's equity = $103,200/0.20

Value of the Company's equity = $516,000

Therefore The Value of the Company's equity is $516,000

B. Calculation to determine the total value of Company equity

First step is to calculate the Debt

Debt equity Ratio = 0.35

Debt/Equity = 0.35

Debt/ $516,000 = 0.35

Debt = $516,000 * 0.35

Debt =$180,600

Now let determine The Company’s value using this formula

Company’s Total value = Equity + Debt

Let plug in the formula

Company’s Total value = $516,000 + $180,600

Company’s Total value = $696,600

Therefore the total value of Company equity is $696,600

7 0

2 years ago

Losses from ________ exposure generally reduce taxable income in the year they are realized. ________ exposure losses may reduce

VMariaS [17]

Losses from transaction exposure generally reduce taxable income in the year they are realized. Operating exposure losses may reduce taxes over a series of years.

Transaction exposure is the extent of uncertainty companies concerned in international exchange face. Specifically, it's far the chance that currency exchange quotes will fluctuate after a company has already undertaken a financial duty.

Taxable income is the part of your gross income that the IRS deems a problem with taxes. It includes each earned and unearned profit. Taxable earnings are normally less than adjusted gross income because of deductions that reduce it.

Gross profits consist of all income you obtain that is not explicitly exempt from taxation below the Internal Sales Code (IRC). Taxable profits are the portion of your gross earnings that's sincerely a problem with taxation. Deductions are subtracted from gross profits to reach your amount of taxable earnings.

Learn more about Transaction exposure here brainly.com/question/15021490

#SPJ4

6 0

1 year ago

Anna Elleson has just opened her plumbing business in a small industrial park located within the boundaries of the city of Tempe

Nuetrik [128]

Answer:

For this situation, Answer will be (A).

Enforceable as private law.

Explanation:

Private Law: it is the branch of law in which the relationship between a person or an institution or a government explained.
Enforceable law: Enforceable means able to be enforced. A right or province can be enforced if a individual who is bound by an act may be forced or ordered to execute with the law process. To put it another way, enforceable is an action that can be effective.

7 0

3 years ago