1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solong [7]
3 years ago
7

Company A Company B Market Value of Equity $250,000 $200,000 Market Value of Debt $600,000 $500,000 Cost of Equity 8% 10% Cost o

f Debt 2% 2% Tax Rate 35% 30% Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of 5%? a) Neither Company A nor Company B b) Only Company B c) Only Company A d) Both Company A and Company B
Business
1 answer:
mihalych1998 [28]3 years ago
3 0

Answer:

Neither company

Explanation:

They did not receive an investment.

You might be interested in
Your campus computer store reported Sales Revenue of $168,000. The company's gross profit percentage was 60.0 percent. What amou
Pachacha [2.7K]

Answer:

COGS= $67,200

Explanation:

Giving the following information:

Your campus computer store reported:

Sales Revenue of $168,000.

The company's gross profit percentage was 60%.

Gross profit= sales revenue - cost of goods sold

sales= 168,000

COGS=?

gross profit= 168,000*0.6= 100,800

COGS= 168,000 - 100,800= $67,200

8 0
3 years ago
On April 23, Mrs. Y purchased a taxi business from Mr. M for a $60,000 lump-sum price. The business consisted of a two-year-old
vladimir2022 [97]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

It must allocate \$19000 for both the taxicab and \$41,000 for the rest of the license, the client list, and the company name registered.

Its cost of intangible material could be amortized for 180 months starting in April. (\frac{41,000}{180}) \times 9\ \ months = \$2,050 is her amortization deduction.

She could also use Section 179 to decrease her taxable money to \$17,890 (\$36,890 - \$19,000) but include her deduction.

Her taxable annual income is \$15,840 (\$17,890 - \$2,050).

In point b:

They must allocate \$19,000 for the taxi and\$41,000 for their licenses, the customer list as well as the business by interacting with people register. Its cost of the material could be depreciated for 180 months, starting in April.

(\frac{41,000}{180}) \times 9\ \ months = \$2,050  is her amortization deduction.

The taxable income here = \$0 (from \  \$17,100 -\$19,000) = -1,900.

Section 179 could be requested if another income is earned on the tax return (such as W-2 wages).

As all Section 179 is unpaid with other earned income, it is carried forward into the next year.

3 0
3 years ago
Profit maximization occurs when:
lianna [129]

Answer:

The correct answer is option B.

Explanation:

Profit maximization refers to the situation when a firm is able to maximize the total profit that it could earn through the production of goods and services.  

The total profit is maximized when the marginal profit is zero or when the marginal revenue is equal to marginal cost. The marginal profit is the difference between marginal revenue and marginal cost.  

If the marginal revenue is greater than the marginal cost the firm should increase production till both are equal.  

In case, marginal revenue is less than the marginal cost the firm should stop producing more and reduce production till both are equal.

3 0
3 years ago
Suppose that Dmitri, an economist from an AM talk radio program, and Frances, an economist from a school of industrial relations
lions [1.4K]

Answer:

1. The disagreement between these economists is most likely due to

a. differences in values

2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?

a. Lawyers make up an excessive percentage of elected officials.

Explanation:

Economists chosen at random do not usually agree on economic events and realities, instead, they are more likely to agree on issues that are not economic.  They offer differing opinions based on similar principles.  Most of their disagreements stem from differences in what they place their values on.  Some value market-oriented approaches while others value government interventions in market situations, with other variants in-between.

7 0
3 years ago
On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The co
ivolga24 [154]

Answer:

a. Cash 5,684 Sales discounts 116 , Accounts receivable 5,800

Explanation:

The journal entry is shown below:

Cash A/c Dr                   $5,684

Sales Discount A/c Dr $116

     To  Accounts receivable    $5,800

(Being cash received recorded)

The computation of the account receivable  

= $5,800

And, the discount would be

= Accounts receivable × percentage given

= $5,800 × 2%

= $116

The remaining amount would be credited to the cash account i.e $5,684 ($5,800 - $116)

7 0
3 years ago
Other questions:
  • Student Emergency Financial Services, Inc., which makes small loans to college students, offers to lend $550. The borrower is re
    10·1 answer
  • A bottling plant fills 2,400 bottles every two hours. The lead time is 20 minutes and a container accommodates 80 bottles. The s
    8·1 answer
  • Is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and contro
    8·1 answer
  • The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% pe
    12·1 answer
  • Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is
    8·1 answer
  • Which of the following hiring procedures provides the most control over the accuracy of information submitted on an employment a
    7·1 answer
  • True Moto Corp. (TMC) is a leading automobile company. The company has been able to sustain its competitive advantage primarily
    14·1 answer
  • A bookstore organizes its stock by topic. It has a mystery novel section, a romance novel section, a how-to-do-it section, a tra
    12·1 answer
  • Jennifer Schwab is an investor in The Handy Man Pro Shops. On January 1, she purchased 225 shares of stock at a price of $15 per
    7·1 answer
  • Advantage of running your own shop by yourself and disadvantage of running your own shop?​
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!