Advertising regulations provide a set of rules and regulations that protects the consumer from deceptive or misleading claims.
Answer: Option (d)
<u>Explanation:</u>
Advertising regulations is a consumer protection act that safeguards the peoples from being misled in false information about sales and trade.
These regulations evaluates the bad products in a company and makes it fail easily.
It explains the detailed information about the severity of false product in a company and prevents the people from consuming that product.
FTC is one of the advertising policies commonly referred to as the Federal Trade Commission safeguards the consumers from unwanted practices and it also protects the basic rights of the consumer in a state.
FTC uses three major bureaus to evaluate the fraud practices involved in a business and implements a proper advertising activities.
Bureaus of Competition, Economy and Consumer protections implies the best practices of advertising policies.
Answer:
5.75%
Explanation:
the required rate of return for a preferred stock can be calculated by dividing the preferred dividend by the current market price:
- required rate of return = $5.35 / $93 = 5.75%
The preferred dividend is fixed, but the market price varies depending on the required rate of return.
Answer:
The depreciation expense for Year 1 is $9880
Explanation:
The cost of equipment to be recorded in the books is the price at which it was purchased and the cost incurred to bring it to intended use that is the installation cost. Thus, the cost of the equipment in the books will be recorded as,
Equipment = 88000 + 4000 = $84000
The insurance and maintenance are recurring expenses and are not capitalized.
The depreciation rate under units of production method is,
Depreciation rate = (cost - salvage value) / estimated useful life in units
Depreciation rate = (84000 - 8000) / 100000 = $0.76 per unit
The depreciation expense for Year 1 = 0.76 * 13000 = $9880
Answer:
D 34.62%
Explanation:
To get the return on commonequity we need to follow a few steps as follows:
Here we have to let the Average total common stockholders' equity = ($550,000 + $490,000) ÷ 2 = $520,000 and (Net income $200,000 - Preferred Dividends $20,000) ÷ Average total common stockholders' equity = 34.62% .Therefore the correct answer is 34.62%.
