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N76 [4]
3 years ago
10

Which of the following explains why a company’s book value as reported in the balance sheet may not equal the company’s market v

alue? I. Many assets are measured at their historical cost rather than amounts for which the assets could be sold. II. Many valuable resources of the company are not directly reported as assets in the balance sheet. III. Investors do not use the balance sheet to judge a company’s value.
Business
1 answer:
kondaur [170]3 years ago
5 0

Answer:  "I. Many assets are measured at their historical cost rather than amounts for which the assets could be sold."  explains why a company’s book value as reported in the balance sheet may not equal the company’s market value.

Explanation: Normally non-current assets (fixed assets) are valued at their historical acquisition cost, therefore the difference between the market value and the book value of a company occurs

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The decisions you make with your money is called what?
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Well there are many decisions you can make with your money such as use it for a good cause or use it for reckless things. You could give to charity or just do nothing with it. It really depends

5 0
3 years ago
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a rectangular swimming pool has dimensions 45 metre by 20 metre concrete path of 3.5 m width is laid around it .Find the cost of
Anon25 [30]

Answer:

Rs. 5993.75

Explanation:

The computation of the cost of laying the path is given below:

= {area of(pool +path)- area of pool }

= ((45 + 3.5) × (20 + 3.5)) - (45 × 20)

= (48.5×23.5) - (45 × 20)

= 1139.75 - 900

= 239.75 square meters

Now the cost is

= 239.75 × 25

= Rs. 5993.75

8 0
3 years ago
What is "transfer pricing?" The prices established to record an intercompany sale The taxes paid on sales in a foreign country T
Lisa [10]

Answer:

Transfer pricing are the prices established to record inter-company sale

Explanation:

The transfer price is the price at which one arm of a business sells to the other.For instance,the price at which one division of a company sells to  another division,

The transfer price is very important in order that tax authority may see that the sale price charged is at arms length for all parties involved.

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3 years ago
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Auditors-Are-Us LLC, audited the financial statements of LINKCO Industries, a private company, for the year ended December 31, 2
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4 0
3 years ago
Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan
tester [92]

Answer:

Maximum price to be paid for the stock = $12.43

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>

Year                                   PV of dividend

1                                          8  ×1.15^(-1)  

2                                           4 ×  1.15^(-2)  

3.                                              2 × 1.15^(-3)    

4                                                  2 × 1.15^(-4)    

PV of dividend =   (8 ×1.15^-1) +  (4 × 1.15^-2)  + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439

Maximum price to be paid for the stock = $12.43

4 0
3 years ago
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