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ASHA 777 [7]
3 years ago
12

Which of the following below is an example of a capital expenditure? Group of answer choices replacing an engine in a company ca

r cleaning the carpet in the front room tune-up for a company truck replacing all burned-out light bulbs in the factory
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer:

The correct answer is letter "A": replacing an engine in a company car.

Explanation:

Capital Expenditures refers to the company's expenditure on physical assets such as buildings or equipment. Capital expenditure is unusual and can not be deducted from income for tax purposes; instead, the value of capital expenditure is added to the assets of the company and the value is reduced annually by depreciation and amortization.

Therefore, <em>replacing an engine in a company car is a necessary, unexpected expense the firm has to incur.</em>

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How do you define success?
bearhunter [10]

Answer:

if ur happy then ig I could say ur successful

if made it to the top I could say ur successful

if u reached the destination if ur dream I would say ur successful

3 0
3 years ago
Read 2 more answers
you worked from 9:00 am to 7:00 pm with a 45 minute unpaid lunch and an unpaid 15 minute break. you will be paid time and 1/2 fo
Viktor [21]

Answer:

His overtime wage = $18.75

Total wages for one day = $118.75

Explanation:

Given,

He worked from - 9:00 am (Internationally - 9:00)

He stopped at - 7:00 pm (Internationally - 19:00)

Therefore, he worked for = (19:00 - 9:00) = 10 hours

Again,

He had unpaid 45 minute lunch break

He had unpaid 15 minute break

Total unpaid time = (45 + 15) minutes = 1 hour.

Therefore, he will be paid for = 9 hours

Again,

His normal wage = $12.50 per hour

<em>His overtime wage = 1.5 times of his normal salary = $12.50*1.5 = $18.75</em>

Since he worked more than 8 hours, he worked 1 overtime hour. Therefore,

(8 hours x $12.50) + (1 hour x $18.75) = $118.75

5 0
3 years ago
is the sum of all the values that customers exchange for the benefits of having or using a product or service.
snow_tiger [21]

Price. It is the sum of all values that buyers exchange for the benefits of having or using a good or service. can be defined very narrowly as the amount of money charged for a product or a service. However, the price is really more than that.

3 0
3 years ago
Read 2 more answers
Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales o
LenaWriter [7]

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

  1. and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
  2. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

6 0
3 years ago
Siebel Incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 6
Readme [11.4K]

Answer:

Answer of each requirement is given seperatly below.

a What is the value of Siebel using the DCF method?

Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)

Putting values (assuming after tax earning is all in cash)

Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars

 

"WAAC calculation

Here WAAC is equal to cost of equity (ke) as company is debt free.

so

Ke = risk free rate + beta (risk premium)

    = 5 + 2.5 (6) = 20%

b What is the value using the comparable recent transactions method?

Based on recent tansaction the value of siebel incorporated will be               calculated as shown below

 Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars

Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.

c What would be the value of the firm if we combine the results of both methods?

By combining value of both value technique we get 189 + 250 = 439 million dollars.

8 0
3 years ago
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