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3 years ago

Your company buys a car, and its value goes down over time. What is that process called?

Business

2 answers:

kozerog [31]3 years ago

4 0

The correct answer would be B. Depreciation

deff fn [24]3 years ago

4 0

The correct answer is B. Depreciation

Explanation

Depreciation is a term used to refer to the decrease in the value of a good or service. In general, depreciation is caused by two main causes, the first is due to degradation of the product that results from its use, and the second is due to obsolescence. For example, cars experience depreciation due to the distance they have traveled because this affects their operation and condition. On the other hand, a technological object such as a cell phone or a computer loses its value, because it becomes obsolete when new models are released.

According to the above, the statement is an example of depreciation because the car that the company bought loses value over time because new models have been released at that time and its use caused the car the degradation of its parts. So, the correct answer is B. Depreciation.

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Which commercial lodging type is located on or near u.s. installations, is operated by a commercial lodging company, and is corp

Volgvan

Which commercial lodging type is located on or near U.S. installations, is operated by a commercial lodging company, and is corporately branded? DoD Privatized Lodging. DoD stands for Department of Defense. This type of lodging is found near or on U.S. military installations and used for government travel.

6 0

3 years ago

In a large corporation, shareholders responsibilities include ________.

tankabanditka [31]

~Hello There!~

I'd say it is Electing a board of directors.

Hope This Helps You!
Good Luck :)
Have A Great Day ^_^

- Hannah ❤

5 0

2 years ago

Shamas famous restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). dividends are expected to gr

Tpy6a [65]

The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds by purchasing new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:

Ke = (DIV 1 / Po) + g

Ke = cost of external equity

DIV 1 = dividend to be paid next year

Po = market price of share

g = growth rate

In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.

Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.

8 0

2 years ago

Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing practices would be seriously flawed be

Llana [10]

Answer:

True

Explanation:

This is true because the Federal Trade commission(FTC) analyze and investigate a seller or sellers who may be so cooperative as to make agreements that ensure large amounts of profit for them which is likely harmful and exploitative to consumers . FTC investigates business mergers which may be horizontal or vertical that are likely done for the purpose of increasing market share and fostering a sort of monopoly of the market. However, mergers and cooperation among businesses in the market do not always yield a monopoly and the FTC may be wrong(sometimes) to wave mergers that could increase the quality of goods or services in a market

7 0

2 years ago

32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent. The firm has 7,350

pashok25 [27]

Answer:

WACC = 11.1%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Market of securities

Common stock = $80 × 32,500= 2,600,000.

Preferred stock = $95.50 × 7,350= 701,925.00

Bond = 407,000/100 × 111.5= 453,805.00

Cost of each capital type

Common stock= 12.95

Preferred stock = (7.90%× 100)/95.50= 8.3%

Bond= 8.11%× (1-0.4)=4.87%

WACC

Type Market Value Cost Market value cost

Common stock 2,600,000. 12.95% 336,700.00

Preferred 701,925.00 8.3% 58,065.00

Bond 453,805.00 4.87% 22,100.30

Total 3,755,730.00 416,865.30

WACC = (416,865.30 / 3,755,730.00) × 100

= 11.1%

WACC = 11.1%

4 0

3 years ago