Answer:
$13,200 per year
Explanation:
Amount incurred to improve the office space = $
Improvement expected to yield benefit = 10 years
Remaining life on it's lease = 8 years
Since the office space is not going to remain with Phoenix after the lease period, it means that the improvement expenses will be expensed over the remaining lease period I.e 8 years.
Therefore, the amount of expense that should be recorded the first year related to improvements can be calculated as;
= Amount incurred to improve the office space ÷ remaining life on its lease
= $105,600 ÷ 8
= $13,200 per year
Answer:
D. Investment income
Explanation:
Aggregate income is the total of all the incomes in an economy. Investment income itself is a component of aggregate income. Aggregate expenditure is the sum of consumer, investment, government and net exports expenditures.
At equilibrium aggregate expenditure is equal to income. Therefore option d is the answer to this question.
Answer:
Limited decision making
Explanation:
Limited decision making -
It is a consumer decision making process , which is applied , when the consumer purchases some product that is very much familiar to them , but still require more information of the goods or services , in order to make the perfect decision , i.e. , which brand or model is best for them , is referred to as limited decision making.
Hence, from the given scenario of the question,
The correct term is limited decision making.
Answer:
9%
Explanation:
Given:
The net income = $12,000
Total equity = $40,000
Total assets = $80,000
Dividend payout ratio = 40%
Now,
Internal rate of return, r =
or
Internal rate of return, r =
or
Internal rate of return, r = 15%
and,
Retention ratio = 1 - Dividend payout ratio
= 1 - 0.40
= 0.60 or 60%
Now,
Growth rate = Retention ratio × Internal rate of return
or
Growth rate = 0.60 × 0.15
or
Growth rate = 0.09
or
Growth rate = 9%