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Andreyy89
2 years ago
8

When corporate taxes and the cost of financial distress are taken into consideration, the market value of a firm is equal to the

value of the all-equity firm _____ the PV of the tax shield _____ the costs of financial distress
Business
1 answer:
Fudgin [204]2 years ago
3 0

Answer:

rise and decrease

Explanation:

  • Corporate tax is also called as company and is directly imposed by law on the incomes of capital and many countries imposed such taxes at the national levels and on the state level. Financial distress is a condition which the company make sufficient revenue and has higher fixed losses. This takes place due to some downturns.
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A disadvantage of adding a salad bar to a school lunch menu would be ?
bearhunter [10]
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
5 0
3 years ago
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Axcel software began a new development project in 2020. the project reached technological feasibility on june 30, 2021, and was
Neporo4naja [7]

The amortization of the software development costs for the year 2022 would be $5,60,000.

<h3>What is Amortization?</h3>

Amortization is the process of repaying a debt in equal amounts over time. A portion of each payment is applied to the loan principal, while the remainder is applied to interest.

When a mortgage loan is amortized, the amount paid toward principal begins small and steadily increases month after month.

<u>Computation</u>:

According to the given information,

The revenues of 2022 from the sale of new software(Sales Revenue)= $4,000,000.

Anticipated Additional Revenues = $6,000,000

Then, the total revenue is :

\text{Total Sales} = \text{Sales Revenue + AAR}\\\\\text{Total Sales} = \$4,000,000+ \$6,000,000\\\\\text{Total Sales} = \$10,000,000

Then, the percentage of Total Revenue would be:

\text{Percentage of Total Revenue} = \dfrac{\text{Sales Revenue}}{\text{Tota Revenue}}\\\\\text{Percentage of Total Revenue} = \dfrac{\$4,000,000}{\$10,000,000}\\\\\text{Percentage of Total Revenue} = 40\%

Then, the Cost incurred from June to the date of product release =

Therefore, the amortization of the software development costs for the year 2022:

=\text{Cost incurred to product release} \times \text{percentage of Total Revenue}\\\\=\$1,400,000 \times 40\% \\\\=\$5,60,000

Learn more about the Amortization, refer to:

brainly.com/question/24232991

$SPJ1

5 0
2 years ago
for each of the following goods that are imported in the united states, identify which of the three sources of comparative advan
olya-2409 [2.1K]

For each of the following goods that are imported in the United States, abundant input is the only source of comparative advantages that accounts for that country's comparative advantage. Therefore, the option A holds true.

<h3>What is the significance of a comparative advantage?</h3>

A comparative advantage can be referred to or considered as a situation in which a producer has an economic advantage over the other in a number of economic activities. At least two economies need to be a part of the society for the occurrence of a comparative advantage.

Abundant inputs is one of the key sources of comparative advantage. It is considered as a source that can account for another country's comparative advantage, when it lets the United States import its goods.

Therefore, the significance regarding comparative advantage has been aforementioned.

Learn more about comparative advantage here:

brainly.com/question/13221821

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7 0
1 year ago
Metlock, Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at Decemb
AURORKA [14]

Answer:

The $5,434 is the the amount of the ending inventory by applying the lower-of-cost-or-net realizable value basis.

Explanation:

Based on the Generally Accepted Accounting Principles (GAAP), the inventory value should be recorded at the cost or net realizable value whichever is lower.

So, by using the above information. Now we can compute the ending inventory.

For Camera :

1. Minolta = Unit price × lower cost of Net realizable value or cost

                 = 3 × 156

                = $468

2. Canon = Unit price × lower cost of Net realizable value or cost

                = 10 × 147

                = $1,470

For Light Meters:

1. Vivitar = Unit price × lower cost of Net realizable value or cost

               = 15 × 104

               = $1,560

2. Kodak = Unit price × lower cost of Net realizable value or cost

              = 16 × 121

              = $1,936

So, the ending inventory is sum of the value of all products which is equals to

Minolta + Canon + Vivitar + Kodak

$468 + $1,470 + $1,560 + $1,936

$5,434

Hence, $5,434 is the the amount of the ending inventory by applying the lower-of-cost-or-net realizable value basis.

7 0
3 years ago
On January 1, Puckett Company paid $1.71 million for 57,000 shares of Harrison’s voting common stock, which represents a 40 perc
vaieri [72.5K]

Answer:

Total 1,775,000

Explanation:

1.71m for 57,000 shares -->40% investment

$3 dividends per share

net income of 590,000

1.,710,000

+ 40% of net income 590,000  =   236,000

- 57,000 x $3 dividends per share = -171,000

The dividends under the equity method mean it is moving cash from one box (Harrison) to the main company (Puckett) so they decrease the Harrison valuation and increase cash, giving no effect on the assets of Puckett.

Total 1,775,000

5 0
3 years ago
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