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3 years ago

If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero.

Business

1 answer:

aev [14]3 years ago

8 0

Answer:

If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero.

True

Explanation:

Reason being that it does not take any cost to secure such capital i.e no interest, then there is no cost for such capital

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How do developed countries maintain an advantage over

maks197457 [2]

Developed countries work on their industrialization more than developing countries by maintaining their industries up to date by introducing all recent techniques that help in growth.
They work on their ca-pita and GDP more as compared to developing countries.
Increase their literacy rate.
Make their infrastructure more and more powerful and up to date.
Develop more revenue by introducing new techniques and creating labs on which they research the feasibility analysis of techniques they can improve.
Make their standards of living more high.
Utilize their resources effectively and efficiently.
Make their birth and death rate as low as possible.

6 0

3 years ago

Boxer Company owned 16,000 shares of King Company that were purchased in 2016 for $440,000. On May 1, 2018, Boxer declared a pro

Serjik [45]

Answer:

By 110,000 the retained earnings reduced by the property dividend.

Explanation:

Retained Earnings: The retained earnings is that earnings which is left after all payments relating to the business expenses, shareholder dividend. The earnings which is to be retained so that it can come in use in near future.

For retained earning calculation, the stock market value is recorded when the date is declared not on distribution date.

So, the calculation is computed below:

As the 50,000 shares is given for every 10 shares. So, first we have to compute for 1 share which comes by dividing shares to number of shares i.e. 50,000 shares ÷ 10 shares = 5,000 for 1 share.

Now, multiply by market value which comes = 5,000 × $22 = $110,000.

So, by 110,000 the retained earnings reduced by the property dividend.

4 0

3 years ago

Ted, a project manager, wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in Ye

Art [367]

Answer:

The project will not be approved

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

IRR = 13,41%

profitability index = 1 + (NPV / Initial investment)

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

I = 10%

NPV = $2,772.72

PI = 1 + $2,772.72 / $58,500 = 1.04

The project will not be approved because the PI is less than the amount of return the boss wants even though the IRR is less than the discount rate

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

4 0

3 years ago

Users are trying to create Opportunities and are receiving errors when populating a custom picklist field. When user select eith

Dahasolnce [82]

Answer:

There are contradicting validation rules on the picklist field

Explanation:

There are contradicting validation rules on the picklist fields

5 0

3 years ago

Sheffield Corp. purchased a depreciable asset for $381000. The estimated salvage value is $27000, and the estimated useful life

sladkih [1.3K]

Answer:

the second year depreciation expense using the double-declining method is $71,437.50

Explanation:

The computation of the second year depreciation expense using the double-declining method is as follows:

First determine the depreciation rate i.e.

= 1 ÷ 8 years × 2

= 25%

Now the depreciation for the first year is

= $381,000 × 0.25

= $95,250

And, for the second years, it is

= ($381,000 - $95,250) × 0.25

= $71,437.50

hence, the second year depreciation expense using the double-declining method is $71,437.50

7 0

3 years ago