How can companies increase return on common stockholders’ equity without increasing revenue?

Newspaper vending machines are often built so that customers can pay to lift a door and take a paper off a pile of daily newspap

worty [1.4K]

Newspaper distributors are not concerned because the second copy that is taken will be of less value to the customer or thief since they would contain the same information. Thus, acquiring more than one copy is not a loss of revenue to the distributors.

8 0

4 years ago

Joann fabrics inc. has created a new combination of colors and fabric types. the firm wants to know how customers will perceive

Inessa [10]

Answer:

C) image

Explanation:

A product's image is how consumers perceive and view a company's product.

Sometimes the concept of product image is broader than how potential customers perceive your specific product, since it can include how they perceive your brand as a whole or the type of product as a whole.

For example, if the public considers a brand to be low quality, when they see an attractive product from that brand, their product will be nice but low quality.

3 0

3 years ago

Suppose an economist argues that it would be fairer if everyone in society had to pay the same portion of their income in taxes

nata0808 [166]

Answer:

Proportional Tax

Explanation:

A proportional tax imposes the same flat rate (in %) on income as payable tax.

Other types of taxes are Progressive and Regressive Tax. In progressive, the higher you earn, the higher tax you pay while in Regressive, the higher you earn, the lower income tax paid and vice versa.

8 0

3 years ago

Let A equal the reported inventory value if the lower-of-cost-or-market rule is applied to individual items of inventory while B

Lera25 [3.4K]

Answer:

The correct answer is A will always be equal to or less than B.

Explanation:

In general terms, inventory is valued in terms of cost. But there must be a deviation from the cost basis of the inventory valuation and it must be reduced below cost when the utility of the goods has decreased and its sale product or item value will be less than its cost.

The decrease in the value of inventory below cost can be due to different causes, such as physical deterioration, obsolescence, a drop in the price level, etc. In these situations, the inventory is recorded at its market value. The difference in value (cost-to-market value) is recognized as a loss for the current period. It should be understood that the market value of the inventory must be estimated since the inventory has in fact not been sold. As a general rule, the concept of market value is used in terms of the current replacement cost of inventory, that is, what it will currently cost to purchase or manufacture the item.

5 0

3 years ago

Sun City issues $50 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A Portion of

inna [77]

Answer:

1. Bonds are issued at a premium.

2. $55,338,768.

3. $50,000,000

4. 8%

5. 7%

6. $74,661,232

Explanation:

The well arranged table is as below for clarity:

Date Cash Paid Interest Decrease in Carrying Value

Expense Carrying Value

01/01/2021 $55,338,768

06/30/2021 $2,000,000 $1,936,857 $63,143 55,275,625

12/31/2021 2,000,000 1,936,857 65,353 55,210,272

1. Face Value of Bonds = $50,000,000

Issue Value of Bonds = $55,338,768

Issue value of bonds is higher than its face amount; therefore, bonds are issued at a premium.

2. Original issue value of bonds is $55,338,768.

3. Face amount of the bonds is $50,000,000.

4. Semiannual interest rate = Cash paid / Face value of bonds

Stated semiannual interest rate = $2,000,000 / $50,000,000 = 0.04 =4%

Stated annual interest rate = 4% × 2 = 8%

The stated annual interest rate is 8%

5. Market semiannual interest rate = Interest expense on 6/30/21 / Carrying value on 1/1/2021

Market semiannual interest rate = $1,936,857 / $55,338,768

Market semiannual interest rate = 0.035 = 3.50%

Market annual interest rate = 2 × Market semiannual interest rate

Market annual interest rate = 2 × 0.035 = 7%

The market annual interest rate is 7%

6. Tenure of bonds = 20 years

Number of semiannual payment = 2 * Life of bonds = 2×20 = 40

Total cash paid = Number of semiannual payment × Semiannual interest payment + Maturity value of bonds

Total cash paid = 40 × $2,000,000 + $50,000,000

Total cash paid = $130,000,000

Total cash paid for interest = Total cash paid - Issue value of bonds

Total cash paid for interest = $130,000,000 - $55,338,768

Total cash paid for interest = $74,661,232

The total cash paid for interest assuming the bonds mature in 20 years is $74,661,232.

6 0

4 years ago