Answer:
D. Currency exchange risk
Explanation:
If you must deal with only domestic long term investments, then you should not worry about the currency exchange risk. The currency exchange risk is extremely relevant and important when you are dealing with investments in foreign countries. The currency exchange risk refers to risks associated with the US dollar depreciating or appreciating against other foreign currencies.
Answer:
$30,000
Explanation:
Usually, patents do not have a salvage value. If the useful life is 16 years, the amortization rate will be 1/16 x 100
=0.0625 x 100
=6.25%
Before January 2017, the trademark had been amortized for four years ( 2013, 2014, 2015, and 2016.)
Amortization per year = 6.25% x $400,000
=0.0625 x $400,000
=$25,000 per year: Four year amortization would be
=$25,000 x 4
=$100,000
The Book value as of January 2017 will be
=$400,000 -$100,000
=$300,000
add legal fee
=$300,000 + $60,000
=$360,000
remaining useful life = 16 -4 years = 12 years.
new depreciation rate = 1/12 x 100
=0.08333
Depreciation amount for 2017
= 0.08333 x $360,000
=$30,000
Answer:
Companies HD and LD
Since Company HD has the higher total debt to total capital ratio, the statement that is CORRECT is:
B) Company HD has a higher return on equity than company LD.
Explanation:
Return on Equity (ROE) is a financial measure of how well a company's management deploys shareholders' capital. A higher ROE can be a result of high financial leverage, meaning that more debt than equity is being used to generate the returns. Note that too much leverage poses solvency risks.
Answer:
No, their economic cost of enrolling in the business program is not the same for both,
Explanation:
The explicit costs of going back to college are the same for Walter and Jesse, e.g. they might be $20,000 per year, or even $30,000 doesn't matter for this analysis. But Walter is currently working as a teacher and that means taht if he decides to go to college, his implicit costs will include the forgone salary as a teacher which is $50,000 per year. Implicit costs are opportunity costs, i.e. additional costs or benefits lost from choosing one activity or investment instead of another alternative.
Since Jesse is not working, whether she goes back to college or not will not affect her income, it will still be $0, but if Walter goes back to college he will lose his salary.
