Answer:
Mental states selling
Explanation:
Mental states selling, or the formula approach to personal selling, assumes that the buying process for most buyers is essentially identical and that buyers can be led through certain mental states, or steps, in the buying process. Relies on a structured sales presentation just like the stimulus response. These mental states includes (AIDS) attention, interest, desire, and action
Answer: $200
Explanation:
To qualify as a Casualty loss, the event that led to the damage or destruction must have been unexpected such as an accident, hurricane, fire etc.
When calculating for the Casualty loss deduction, we simply deduct the money received from the insurance from the Adjusted basis,
Casualty loss deduction = Adjusted basis - Cash received from the Insurance company
= $14,000 - $10,000
= $4,000
Since it is After any limitations, we also deduct a cost per event floor of $100 and 10% of the AGI
=4,000 - 100 - (37,000*0.1)
= $200
Belinda's casualty loss deduction (after any limitations) is $200.
I would say that they should test the water purifier with tap water and run it through the purifier and see if it is actually purifying the water and that way determine if it is performing as it should an if not correct it.
Answer:
Gain= $63,000
Explanation:
<u>First, we need to calculate the book value:</u>
<u></u>
Book value= purchase price - accumulated depreciation
Book value= 250,000 - 35,000
Book value= 215,000
<u>Now, the gain or loss from the sale:</u>
Gain/loss= selling price - book value - selling expense
Gain/loss= 290,000 - 215,000 - 12,000
Gain= $63,000
Answer:
(A) Cost of equity= 15.74%
(B) WACC = 12.86%
Explanation:
Palencia paint corporation has a 35% debt from it's target capital structure and 65% common equity
The before-tax cost debt is 10%
Marginal tax rate is 25%
Po is $22.00
Do is $2.25
Constant rate(g) is 5%
(A) The cost of common equity can be calculated as follows
= [Do(1+g)/Po] + g
=[2.25(1+0.05)/22] + 5%
= [2.25(1.05)/22] + 5%
= 2.3625/22 + 5%
= 0.1074+5%
= 0.1074×100+5%
= 10.74%+5%
Cost of equity = 15.74%
(B) The WACC can be calculated as follows
= weight of debt×after-tax cost of debt + weight of equity×cost of equity
= (35%)(10%)(1-25%) + (65%)(15.74%)
= (35%)(10%)(1-0.25) + (65%)(15.74%)
=(35%)(10%)(0.75) + (65%)(15.74%)
= 2.63% + 10.23%
= 12.86%
Hence the cost of equity is 15.74% and the WACC is 12.86%
