A trademark is a tangible asset with an indefinite useful life.
Answer the following statement true (T) or false (F)
False
A trademark is a name or symbol that identifies a company or a product and is an intangible asset. Trademarks are registered with the federal government and have an indefinite legal lifetime.
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Regarding mystery shoppers, they:
A) have been greatly improved with use of hidden video. B) should only go to random locations. C) work best when they observe general conditions rather than pre-determined things. D) are best used to catch workers doing things wrong.
Which of the following data/tools that inhabit the experience data ecosystem provides purely diagnostic data and no tracking data?
A) customer experience measurement systems B) user testing C) web analytics D) voice-of-the-customer programs
Complete the following by filling in the blanks: (1) The Prepaid Insurance account had a $545 debit balance at the beginning of the current year; $650 of insurance premiums were paid during the year; and the year-end balance sheet showed $420 of prepaid insurance; consequently, the income statement for the year must have shown $________ of insurance expense.(2) The Office Supplies account began the current year with a $235 debit balance; the income statement for the year showed $475 of office supplies expense; and the year-end balance sheet showed the current asset, office supplies, at $275; consequently, if all supplies were accounted for, $________ of office supplies must have been purchased during the year.
What will be an ideal response?
Readable Materials Inc., a manufacturer of coated freshet and coated ground-wood paper used in catalogs, magazines, and commercial printing applications, has three bond issues outstanding. The following table describes these issues:
In addition, the firm’s 100,000 preferred shares of stock pay $0.75 per share quarterly and currently have a market price of $30 per share and a book value of $20 per share. The flotation costs for debt, preferred, and common equity are 3%, 5%, and 7%, respectively. The current price per share of the firm’s 200,000 shares of common stock is $50, but they have book value of $30 per share. The firm expects an average common dividend growth rate of 3% indefinitely and a dividend yield of 12% for the next year. The firm’s beta coefficient is 1.5 and its marginal tax rate is 40%. If the current risk free rate and market risk premium are 3% and 7% respectively, answer the following:
a) What are the book and market value weights for each source of capital?
b) What are the component costs of capital (i.e., debt, preferred equity, retained earnings, and new common equity)? Use the weighted average of the bond market values to determine the cost of debt and the arithmetic average of the dividend discount model and CAPM model for the cost of retained earnings.
c) What is the weighted average cost of capital using both the market and book value weights?