Ratio Analysis On Market Value

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Ratio analysis on Market value The market value of a leased vehicle is normally lower than the residual value. The residual value of a leased vehicle is adjusted downward towards carrying the value during the lease end that approximates the estimated end of term market value. During the quarterly periods, TMCC reviews the estimated end of term market values of a leased vehicle to assess the aptness of carrying the values. Thus, the factors affecting the estimated end of term market value is somewhat similar to the evaluation considered for the residual value. The contract maturity of the leased vehicle is less than its contractual residual value however; there is a higher probability for a vehicle to be returned. In addition, the higher the market supply of certain models of used vehicles cans ultimately lowering a relative level of demand. For example, the loss of severity during the end of term market value is less than the estimated residual value that is established during lease inception. Thus, the depreciation expense is recorded in order to provide a straight line of information to determine the depreciable basis of the leased vehicle. Return on Equity (ROE) TMCC equity price risks are related to its investments and equity mutual funds are included within the investment portfolio. The investments are designed to track the performance and the major equity market indices. With the fair market values, equity investments are mainly determined by
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