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sveticcg [70]
2 years ago
5

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recrea

tional Vehicle valued at $110,000. Car valued at $27,000. Medical bills totaling $8,700. Loan balance of $80,000. Savings of $5,000. Retirement fund of $50,000. Credit card balance of $2,300. A. Recreational vehicle value decreasing to $100,000 b. Borrowing $10,000 more in loans c. Withdrawing $20,000 from the retirement fund d. Adding $1,000 in credit card debt Please select the best answer from the choices provided A B C D.
Business
1 answer:
Usimov [2.4K]2 years ago
8 0

Given what we know, we can confirm that in order to achieve a net worth of exactly 100 thousand dollars, the correct approach would be option D, to add 1,000 dollars in <u>credit card </u>debt.

<h3>Why would this result in the desired net worth?</h3>
  • When adding the initial net worth, we need to <u>add </u>assets and then <u>subtract </u>the liabilities.
  • Assets are anything that adds positive value to our balance sheet.
  • Meanwhile, liabilities are those which add negative values, such as debt.
  • The initial net worth adds up to 101 thousand.
  • Therefore, to reduce this to 100 thousand we must add a thousand in liabilities.

Therefore, given that all the previous balances resulted in a net worth of 101 thousand, and our desired net worth is 100 thousand, we needed to add one thousand in liabilities, which is achieved with the credit card debt addition.

To learn more about net worth visit:

brainly.com/question/12294231?referrer=searchResults

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What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expec
zhenek [66]

Answer:

Confidentiality

Explanation:

The Ethical standard of Confidentiality is one that demands an individual keeps information about a person or company out of public knowledge. It means that any information you have about a client or company that you work for is strictly meant to be between you and the company; no third parties. Information such as health details, company earnings, therapy session details, etc are examples of information meant to be kept confidential. A failure to keep confidentiality can result in legal action being taken against the erring individual.

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4 0
3 years ago
Matthew Granger is a member of the board of directors at Produxicore Inc. Over a period of one year, Matthew failed to attend mo
FrozenT [24]

Answer: Negligence of duties

Explanation:

As a board member it's one of his primary duty to keep abreast of the firm performance. Not been aware for a year on the excuse of not been informed and not seeking to find out personally shows a negligence of duties.

7 0
3 years ago
13. Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its comp
Irina18 [472]

Answer: Strategic Analysis.

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Strategic analysis refers to the process of conducting research on a company and its operating environment within which its operates to formulate a strategy. Strategic analysis helps define a strategy that will help stand out from the competitors and to also remain competitive. Another important function of strategic analysis is the prediction of future events and the planning of an alternative approach if the first fail to deliver.

4 0
3 years ago
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p
raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

                                     = 1.75

Therefore, the  capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

                       = 1.00 ÷ 1.75

                       = 0.5714 or 57.14 %

7 0
3 years ago
DuBois, Inc. announces a large stock dividend of 65% of the 4.96 million outstanding shares of common stock. The current price p
Karolina [17]

Answer:

Option (B) is correct.

Explanation:

Dividend per share:

= (65% of Par value of the stock)

= (65% × 0.01)

= $0.0065

Hence, the total dividend:

= (Dividend per share × outstanding shares of common stock)

= (0.0065 × 4.96 million)

= $32,240

Hence, the dividend would cause a decrease in retained earnings.

Therefore, the correct option is B.

6 0
3 years ago
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