Tangible assets are first recorded at costs to acquire them for use.
- Tangible assets are fixed assets which is referred to as the physical assets which a company/Buisness owns to carry out its daily activities in order to create profit .
- They include<em> investments, cash, inventory, vehicles, office equipment, buildings,machines, </em>etc
Tangible assets are very important to businesses as they
- Help in business operations to provide goods and services
- Serve as collateral for loans
- In case of emergency, they can generate cash
Tangible assets are first recorded in the balance sheet as costs to acquire them for use.
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Answer:
$7.60
Explanation:
Find PV dividend per year at 14% discount rate;
0.30 / 1.14 = 0.2632
0.50 / 1.14² = 0.3847
0.75 / 1.14³ = 0.5062
1 / (1.14^4) = 0.5921
1.20 / (1.14^5) = 0.6232
Find the PV of the terminal cashflow;
Next, sum up the PVs to find the price of the stock today;
Price = 0.2632 + 0.3847 + 0.5062 + 0.5921 + 0.6232 + 5.2308
= $7.60
Answer: This rate setting scheme creates an adverse selection problem: Homeowners with houses on unstable soil are more likely to purchase insurance than homeowners with houses that rest on bedrock
Explanation:
California has its own earthquake insurance program for homeowners and the rates vary by the ZIP code, which depends on the proximity of nearest fault line.
However, critics claim that the people who set the rates ignored soil type. Some houses rest on bedrock while others sit on unstable soil. If the soil type is used, rate setting scheme creates an adverse selection problem.
An adverse selection problem is tendency of those in high-risk areas to purchase the insurance claim because there are higher chances they may get affected. Therefore, the homeowners with houses on unstable soil will more like buy insurance than the homeowners with houses that rest on bedrock.
Answer:
Price
Quality
Explanation:
There are many things to be considered when choosing a supplier, however, price (covering price, Total Cost of Opportunity ) and Quality ( covering product and service quality and quality history) should be prioritized.
