<u>Return on Investment</u> is the compensation companies receive for purchasing capital assets.
Capital assets are significant pieces of property like houses, automobiles, rental properties, stocks, bonds, and even antiques or works of art. A capital asset for businesses is an asset with a useful life of more than a year that is not intended for sale during normal company operations.
Your investments in the business are the time and money you devote to strengthening your company. The profit you receive from your investments is the return. The ratio of net profit to the entire cost of the investment is how ROI is often defined.
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Answer:
E. as current assets
Explanation:
As we know that the
Balance sheet records the total assets, total liabilities and the stockholder equity
Where
The total assets comprises of current assets, tangible assets, and the intangible assets
And, the total liabilities comprises of current liabilities and the long term liabilities
In the given scenario, the purchase of the newest Dorothy Cannell book be listed on the store's balance sheet. So here, the newest Dorothy Cannel book represent the current asset side of the balance sheet
Answer: a. The professional software package included Web 2.0 applications, but it cost more than $1,200.
Explanation:
A simple rule for writing a correct number style is that when writing numbers between 1 - 9 ( single digits numbers), you should spell them out. When writing anything larger however or if writing multiple numbers, you should write them as numerals.
This convention can be typically broken every now and then in certain cases. One of those cases is that, if you have a situation where you have 2 numbers in a sentence, you have to use one style for it and if the 2 numbers consist of 1 small number and 1 large number you would preferably have to use numerals.
For this reason Option A which has two numbers written as numerals is correct.
It is worthy of note however, that different styles exist as do Citation Styles and this answer is based on the most rudimentary of said styles.
Answer:
$2400
Explanation:
Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:
Average cost = Total cost / number of units.
Given that:
The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25
From Average cost = Total cost / number of units.
Substituting gibes:
$1 = Total cost / 100 selfie stick
Total cost = $1 × 100 = $100
Total cost = $100
Revenue = Price per item × Number of items
Revenue = $25 × 100 = $2500
Profit = Revenue - Total cost
Profit = $2500 - $100 = $2400
Total cost = $2400
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.
