Answer:
the Swiss Chalet had higher occupancy than its competitive set in 2019
Answer:
Increase in tax rate will reduce income form bond but will not affect the benefits derivable from the purchase of the new luxury auto.
Explanation:
First, a look at the after tax rates for when tax is 35% and when it is increased to 50%.
Step 1: Compute the after tax rate when tax is 35%
=Interest rate x (1-tax rate)
= 0.08 x (1- 0.35)
-5.2%
Step 2: Compute the after tax rate when tax is increased to 50%
= Interest rate x (1- tax rate)
= 0.08 x (1-0.5)
=4%
The first outcome is that an increase in tax rate leads to a decrease in income. Meaning an increased tax rate reduces the income from the bonds.
However, an increase in tax rate although it will affect the income will have no effect on the new luxury condo, that Ms V wants to buy. This is because, the benefits Ms V will get from the auto cannot be taxed as compared with the interest on the bond.
Hence, it becomes easier for Ms V to buy the luxury auto than invest in bonds if the tax rate should increase
Answer:
a. $14,200
Explanation:
The computation of the bad debt expense is shown below:
Balance in Allowance for doubtful Accounts = Opening Balance in Allowance for Doubtful Account - Accounts Wrote Off + Bad debts recovered
= $20,000 - $11,400 + $4,200
= $9,800
And, Closing Balance is
= $480,000 × 5%
= $24,000
So, the bad debt expense is
= $24,000 - $9,800
= $14,200
We simply applied the above calculations
Answer:
a. The simple ranking method
Explanation:
The simple ranking method -
It refers to the method of evaluation used in a company , in order to rank the employees from best to worst depending on various factors , is referred to as the simple ranking method .
Factors like , negative impact , ratings , feedback etc. all are considered while making the ranking .
Hence , from the given scenario of the question ,
The correct answer is a. The simple ranking method .
If dividends are expected at regular intervals forever, then this is a perpetuity and the present value of expected future dividends can be found using the perpetuity formula
P0 = D / R
P0 = .50 / (.1 / 4) = $20
Your price would be $20
Hope this helps :)
