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stiv31 [10]
3 years ago
7

The original cost of an inventory item is below both replacement cost and net realizable value. The net realizable value less no

rmal profit margin is below the original cost. Under the lower of cost or market method, the inventory item should be valued at
Business
1 answer:
Tanzania [10]3 years ago
4 0

Answer:

D) Original cost.

Explanation:

When the company uses the lower of cost or market method, it should assign value to its inventory by calculating the middle figure between replacement cost or net realizable value, and net realizable value - normal profit.

In this case, the market value must be either the replacement cost or the net realizable value, but both values are the highest. Since the original cost is below the market value, but above the net realizable value - normal profit, the inventory must be valued at the original cost.

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Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend b
andrew-mc [135]

Answer:

30.92%

Explanation:

You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM

<u>Dividend discount model;</u>

cost of equity; r = (D1/P0) +g

whereby, D1 = next year's dividend = 3.00

P0= current price = 13.65

g = dividend growth rate = 11% or 0.11 as a decimal

r = (3/13.65) + 0.11

r = 0.2198 + 0.11

r= 0.3298 or 32.98%

<u>Using CAPM;</u>

r = risk free + beta (Market risk premium)

r = 0.049 + (2.8 * 0.0856)

r = 0.049 + 0.2397

r = 0.2887 or 28.87%

Next, find the average of the two cost of equities;

=(32.98% + 28.87% )/2

= 30.92%

3 0
3 years ago
Prove you know what diminishing marginal utility is by creating an example of your own. Your example
valentina_108 [34]

Hi there, I'm not answering this question, sorry.

Your task clearly states you must think of your own example and prove what you know. That's why.

Please, if you're coming onto the <em>Brainly</em> website, at least improve your questions.

6 0
3 years ago
Document for Analysis: Improving a Negative, Discourteous, and Unprofessional Message (L.O. 4, 5) Communication Technology E-mai
Rudiy27
Yeah this is it it’s positive
7 0
3 years ago
During his annual performance review, Blake says to his supervisor, "So the two main ways that you want me to improve are to dou
Rom4ik [11]

Answer:

E. summarizing

Explanation:

This is an effective listening skill, as Blake asked his manager to improve what he said, and he articulated key ideas, and he took key points from people doubling his work to improve accuracy and become a team.              

The player being investigated  

so correct option is E. summarizing

6 0
3 years ago
Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had
Aleks [24]

Answer:

The correct answer is $300,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Original cost = $250,000

Fair value = $300,000

Retail value = $520,000

As Share based transaction of the organization record or issued always at fair value for which the goods or services are exchanged.

Here, Fair value is given.

So, the transaction will be recorded at fair value = $300,000

7 0
3 years ago
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