Answer:
The book debt-to-value ratio is 0.57
Explanation:
The computation of the book debt-to-value ratio is shown below:
Book debt-to-value ratio = (Book value) ÷ (book value of debt)
where,
Book value is $30.0 per share
Book value of debt = Outstanding shares × book value + long term debt
= 0.730 × $30 + $30.50
= $21.90 + $30.50
= $52.40
Now put these values to the above formula
So, the value would equal to
= $30.00 ÷ $52.40
= 0.57
Answer:
correct option is B.$2,273
Explanation:
given data
purchased = $150,000
building = $100,000
land = $50,000
to find out
Tom's maximum depreciation for this first year
solution
we will apply here The mid month convention applies
and recovery period for Residential property = 27.5-year
maximum depreciation will be here as
maximum depreciation = $100,000 × 2.273%
maximum depreciation = $100,000 × 0.02273
maximum depreciation = $2,273
so correct option is B.$2,273
Answer: c) investment opportunities with superior returns.
Explanation:
Manufacturing more than there is demand means that the day when the demand stops, you will be left with a bunch of inventory you cant sell or get rid of
Answer:
Find the explanation below.
Explanation:
1. The company I chose to operate would be Celebrity Hair Salon. The Celebrity Hair Salon is a standard salon with comfortable furnishings and state-of-the-art equipment intended to tend to the needs of celebrities. Clients are expected to make appointments for their services which the salon strictly adheres to.
2. I would prefer to fund this new business through debt financing. Debt funding entails borrowing funds from Creditors with the intention of paying back at a later time with the attached interest. Equity funding entails giving an investor a certain percentage of the company's returns thus making him a co-owner of the company. This affords him the right to make decisions for the business. Detaching the investor from this business is difficult because it requires buying him out.
I would prefer debt financing because I wish to retain sole ownership of the business. I can also go through some government agencies to obtain funds at lower interest rates. Moreso, there is a fixed debt repayment plan that I can set a target to meet until the debt is paid. Finally, I can regain my freedom after the payment is completed, thus regaining my business and not entitling me to anyone.
