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Verdich [7]
3 years ago
8

What will happen if the current asset price is greater than the present value of income? Question 2 options: Buyers will bid the

asset's price down until it equals the discount rate. Sellers will lower the asset's price until it equals the present value of income. Sellers will raise the asset's price until it equals the present value of income. Buyers will bid the asset's price down until it equals the present value of income.
Business
1 answer:
Inessa05 [86]3 years ago
5 0

Answer:

The answer is:  Buyers will bid the asset's price down until it equals the present value of income.

Explanation:

As the current asset price is greater than the present value of income, it is overpriced.

So, seller is much willing to sell at this price, however, buyers does not want to buy asset at this price as they only want to purchase it at the price equals to the present value of its income.

So, Buyers will bid the asset's price down until it equals the present value of income which is the level they are willing to buy and also at which the seller is willing to sell also.

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Sal and Jen went to the store together, and each bought the same car stereo. Sal used a card to make the purchase, and the full
Irina18 [472]
<span>Because Sal paid for the purchase in full at the time he bought the car stereo, his total at the time was $442.00. Jen bought the same identical car stereo and her payments of $21.30 a month for 18 months equaled $383.40. Add to this total $58.60 in interest and the final total would be $442.00.</span>
4 0
3 years ago
On January 1, Wei company begins the accounting period with a $35,000 credit balance in Allowance for Doubtful Accounts. On Febr
Genrish500 [490]

Answer:

Wei Company

Journal Entry:

Debit Allowance for Doubtful Accounts $7,800

Credit Accounts Receivable $7,800

To write-off accounts determined to be uncollectible.

Explanation:

a) Data and Calculations:

Allowance for Doubtful Accounts (Balance) = $35,000

Uncollectible accounts:

Oakley Co. $1,400

Brookes Co. $6,400

Total = $7,800

b) The amount of $7,800 considered to be uncollectible is written off against the Accounts Receivable.  This reduces the Accounts Receivable while correspondingly increasing the Allowance for Doubtful Accounts.

7 0
3 years ago
Gdp data can be criticized as being inaccurate measures of economic welfare because:
valina [46]
GDP data can be criticized as being inaccurate measures of economic welfare because:
1. GDP data do not take into consideration all the changes in product quality.
2. The data do not take into consideration the negative effects which economic activities have on the environment.
3. The data do not take into account changes in the amount of leisure. 
<span />
4 0
3 years ago
On January 1, 2018, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than Dec
hram777 [196]

Answer:

$120,000

Explanation:

Given that,

stock options = 90,000

Each option can be exercised to acquire one share of $1 par common stock for $12.

Total Value of the option = stock options × fair value of the options

                                          = $90,000 × $5

                                          = $450,000

company to estimate that 10% of the options would be forfeited, so,

= 90% of Total Value of the option

= 0.9 × $450,000

= $405,000

2 out of 3 years = $405,000 × 2/3

                           = $270,000

=\frac{Total\ value\ of\ the\ options}{no.\ of\ years}

=\frac{450,000}{3}

= $150,000

Compensation expense (2019) = $270,000 - $150,000

                                                    = $120,000

6 0
3 years ago
when an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which cost
weqwewe [10]

When an organization produces only a single product or service and attempts to sell it to two or more market segments. It avoids the extra costs of developing and producing additional versions of the product.

For better understanding, lets explain the term

  • Market segmentation is simply known as the act of gathering or aggregating known buyers into groups that have common needs and will respond almost the same to a marketing action.
  • Organization that makes only a single product or service do try to avoids any extra costs that may arise because they want to focus on just one thing

From the above, we can therefore say that the answer When an organization produces only a single product or service and attempts to sell it to two or more market segments. It avoids tahe extra costs of developing and producing additional versions of the product.

Learn more from:

brainly.com/question/14950217

3 0
3 years ago
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