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1 year ago

11

Over its first two years a new car loses at least 30% of its resale value. What will the average resale value of a new car costi

ng $22,000 be after two years?

1 answer:

Andreas93 [3]1 year ago

5 0

$15,400

Why:
Original cost is $22,000 and 30% of that is $6,600.
$22,000 - $6,600 = $15,400

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You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely

VMariaS [17]

Answer:

$45.76

Explanation:

Next dividend = Dividend just paid * (1 + Dividend growth rate) = $3.71 * (1 + 0.036) = $3.84356

Using the formula for the dividend discount model, we can calculate he price per share of the company's stock as follows:

Stock price = Next dividend / (Required return - Dividend growth rate) = $3.84356 / (0.12 - 0.036) = $45.76

Therefore, the price per share of the company's stock is $45.76.

3 0

2 years ago

Suppose a piece of plant equipment that PepsiCo put into service on January 1, 2014 at a total cost of $300,000 with an expected

LenaWriter [7]

Answer:

Preparation of how the journal entry will look like to record the sale

Dr Cash $60,000

Dr Accumulated Depreciation $216,000

Dr Gain/Loss on Disposal of Assets $24,000

Cr Property, Plant & Equipment $300,000

Explanation:

Since we assumed that a piece of plant equipment was put into service on January 1, 2014 at a cost of $300,000 with a salvage value of $60,000 which is been sold out on June 30, 2018 for $60,000 in which the accumulated depreciation was $216,000 this means we have to record the transaction by Debiting Cash with $60,000 ,Debiting Accumulated Depreciation with $216,000 and Debiting Gain/Loss on Disposal of Assets with $24,000 while we Credit Property, Plant & Equipment with $300,000

Calculation of Gain/Loss on Disposal of Assets

Using this formula

Carrying Value = Cost - Accumulated

Depreciation

The Carrying value will be :

300,000 - 216,000 = $84000

The asset loss on disposal of Assets will be:

60,000 - 84,000 = loss of 24000

8 0

2 years ago

What is one negative effect of current patterns in global trade?

mel-nik [20]

The market for a certain item can go down. It can simply be caused by too much of a supply and not enough demand which can usually cause a company to go into debt if they specialize in one product only (e.g. fuels)

4 0

2 years ago

Read 2 more answers

A mass transit authority charges bus fares of $1.25 during morning rush hours but only $1.00 during late morning non-rush hours.

amm1812

Answer:

The correct answer is more inelastic; more elastic.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.

The elasticity of demand, also known as the elasticity-price of demand, is defined as the percentage change of the quantity demanded before a percentage change in the price.

An elastic demand is that demand that is sensitive to a change in price. In this way, a small variation in the price causes a more than proportional change in the quantity demanded. Thus, for example, if the price increases by 10% and in response the quantity demanded is reduced by more than 10%, then the demand is said to be elastic.

7 0

1 year ago

Ron was vacationing in France, when his camera was stolen. As he walked into a camera store, Ron noticed that camera prices we

Mnenie [13.5K]

Answer:

130.43 euros

Explanation:

Since Ron willing to Pay is $150

Now we have to convert $150 in euros

As we know that

exchange rate × willing to pay in euro = Willing to pay in Dollar

i.e.

willing to pay in euro = Willing to pay in Dollar ÷ Exchange rate

= 150 ÷ 1.15

= 130.43 euros

Hence, the ron be paying in euros is 130.43

The same would be relevant

5 0

1 year ago