Answer:
7%
Explanation:
Interest income if Curtis invested
250,000 x 9% = 22,500
After tax interest income = 22,500 - (22,500 x 24%)
= 17,100
After tax rate of return = 17,100/250000
0.068
Approximately 7%
Answer:
<u>Leverage Ratios</u>
Explanation:
Leverage ratios signify the proportion of debt. The purpose behind calculating such ratios and their interpretation being to assess an entity's reliance on debt for raising long term capital.
Debt to investments ratio would be the proportion of debt used in the total investment made by a company.
Debt to investments ratio is computed as : 
In the given case, the company utilized it's funds from debt to the tune of $20 million for it's investments in buying out another company.
Total investments = $ 20 million in debt + $20 million own funds i.e retained profits = $40 million
Out of $40 million, $20 million has been financed by debt.
Thus, Debt to investments ratio is 0.5.
Lower the debt to investment ratio, better it is for the company since lower will be interest and principal repayment obligations.
NO. The company should not <span>alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the company does business. Especially if the alteration made is against company polity and ethics.
The marketing campaigns must represent the authentic stance of the company. It should be presented in such a way that it gives out positive responses from clients and potential clients regardless of market sector.
</span>
Answer:
Realized gain $110,000
Recognized gain $110,000
Explanation:
The computation of the Tonya's realized and recognized gain is shown below:
Amount realized by Tonya (fair market value) $560,000
Less; Amount given by Tonya
Yacht: adjusted basis ($250000)
Assumption of Nancy's mortgage ($200000)
Realized gain $110,000
Recognized gain $110,000
Answer:
The correct answer is True.
Explanation:
Local advertising is of capital importance, especially for those who want to spread their business in specific cities or geographic regions.
With word of mouth advertising, you can surely get your business to reach different cities; but not at the speed that is required to recover the investment invested.
Businesses that have a local advertising plan will be able to bring their products and / or services to potential customers located in the target geographic area and increase their recognition as a local brand.
We are sure you have heard the following quotes; <em>"The best publicity is what satisfied customers do"</em> by Philip Kotler, and "What helps people helps business" by Leo Burnett
So why is local advertising important? Business owners have asked themselves this question for years, and the answer is really quite simple ... To get attention, direct traffic to your business and close sales.
