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yan [13]
3 years ago
7

Wylie has been offered the choice of receiving $5,000 today or an agreed-upon amount in 1 year. While negotiating the future amo

unt, Wylie notes that he would be willing to take no less than $5,700 if he has to wait a year. What is his TVOM in percent? Wylie has been offered the choice of receiving ,
Business
1 answer:
Studentka2010 [4]3 years ago
8 0

Answer:

The answer is 14%

Explanation:

Formula for Future value (FV)                    FV = PV (1+ni)

Whereas FV= Future value, PV = present value, n= number of years, i= TVOM in percentage

Rearranging the formula for i

     i =        (FV/PV)-1

So, i =       (5,700/5,000)-1

      i =      1.14-1

      i =      0.14

      i =       14%

(0.14x100=14%)

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<h2>Answer:Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.</h2>

Explanation:

4 0
3 years ago
Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures
Svetlanka [38]

Answer: Materiality

                   

Explanation: In simple words, materiality refers to the accounting concept which states that only those transaction should be recorded in the financial statements which are important to the stakeholders.

In other words, the transactions should be recorded in such a way that it gives some value to the stakeholders.

Therefore, in the given case, steve reported two expenditures in the fiancial statement as the amount is significant, thus,must be holding the value to stakeholders.

Hence the correct option is D.

5 0
3 years ago
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca
Flura [38]

Answer:

36%

Explanation:

For the computation of the company's return on equity first we need to follow some steps which is shown below:-

Step 1

Earnings before tax = EBIT - Interest

= $452,000 - $152,000

= $300,000

Step 2

Earnings after interest and taxes = Earnings before tax - Tax

= $300,000 - ($300,000 × 40%)

= $300,000 - $120,000

= $180,000

Step 3

Asset turnover ratio = Total revenue ÷ Total assets

3.6 = $4,000,000 ÷ Total assets

Total assets = $1,111,111.11

Step 4

Equity ratio = 1 - Debt ratio

= 1 - 0.55

= 0.45

Step 5

Total Equity = Equity ratio × Total assets

= 0.45 × $1,111,111.11

= $500,000

and finally

Return on Equity = Net income ÷ Equity

= $180,000 ÷ $500,000

= 0.36

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= 36%

3 0
3 years ago
The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va
s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as \frac{Fixed\ cost}{Contribution\ per\ unit}

Thus, break even point in units only in two cases,

  1. Fixed cost is reduced that is decreased,
  2. Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

7 0
3 years ago
What happens during the exit stage of a company?
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<span>The Exit stage is when the entrepreneur gets out of the day-to- day commitment of running the company.</span>
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