Answer:
James will lose money, since his earnings will be lower than the interest that he must pay.
Explanation:
The capitalization (cap) rate is a ratio calculated by dividing the net operating income over the property asset value.
For example, if James is purchasing the property at $100,000, his net earning will be $7,500 per year (cap rate of 7.5%), but he will have to $8,000 in interests for the property. The interests are higher than the earnings, therefore the leverage is negative.
Answer:
b. $358,500
Explanation:
Given;
Retained Earnings at December 31, 2018 = $300,000
In 2019,
Revenue = $600,000
Expenses = $525,000
Declared and paid dividends = $16,500
Retained earnings on the balance sheet as of December 31, 2019
= $300,000 + $600,000 - $525,000 - $16,500
= $358,500
The right option is b. $358,500
well... this is a statment not a question so it doesnt really make snce but yes you should research the company
Answer:
The correct answer is option d.
Explanation:
The fixed costs incurred in the production process of a good or service is the cost incurred on the fixed factors. These factors cannot be varied in the short run.
Fixed cost does not depend on the level of output. It does not change with the change in the volume of output.
In the given example, the cost incurred on the composition typesetting and jacket design for the book does not change with the volume of output. So these costs are the foxed cost involved in publishing a book.
