Professional letters for business
The answer is an active cell. A circular reference occurs when a cell in an Excel<span> 2010 worksheet refers to itself.</span>
Answer:
The solution as per the given problem is provided below throughout the explanation portion below.
Explanation:
The given values are:
Debt issued,
= 120
Pretax earnings,
= 80
Tax,
= 35%
All equity firm,
= $320
Number of common stock,
= 50
(a)
Balance sheet before the debt issue's announcement will be:
<u>Assets </u><u> 320</u>
<u>Debt </u><u> 0</u>
<u>Equity </u><u> 320</u>
then,
The total will be "320".
(b)
The per share price will be:
= ![\frac{Equity}{Number \ of \ common \ stock}](https://tex.z-dn.net/?f=%5Cfrac%7BEquity%7D%7BNumber%20%5C%20of%20%5C%20common%20%5C%20stock%7D)
= ![\frac{320}{50}](https://tex.z-dn.net/?f=%5Cfrac%7B320%7D%7B50%7D)
= ![6.40](https://tex.z-dn.net/?f=6.40)
or,
After tax, the net income will be:
= ![EBIT(1-t)](https://tex.z-dn.net/?f=EBIT%281-t%29)
= ![80(1-0.35)](https://tex.z-dn.net/?f=80%281-0.35%29)
= ![80\times 0.65](https://tex.z-dn.net/?f=80%5Ctimes%200.65)
= ![52](https://tex.z-dn.net/?f=52)
(c)
The return on equity will be:
= ![\frac{Net \ income \ after \ taxes}{Value \ of \ equity}](https://tex.z-dn.net/?f=%5Cfrac%7BNet%20%5C%20income%20%5C%20after%20%5C%20taxes%7D%7BValue%20%5C%20of%20%5C%20equity%7D)
= ![\frac{52}{320}](https://tex.z-dn.net/?f=%5Cfrac%7B52%7D%7B320%7D)
= ![0.1625](https://tex.z-dn.net/?f=0.1625)
or,
=
(%)
Strategic planning is conducted at the highest levels of management and deals with products, capital, research, and the long- and short-term goals of a company.
A corporation, abbreviated as co., is a legal entity representing an association of persons, whether entity, legal or a mixture of the two, with a particular objective. The members of the company share a common goal and together achieve the stated specific goals.
A society may be established as an agency that gives society limited liability when its members perform or fail to perform their obligations under a publicly disclosed constitution or policy. to be announced. When a business closes, it may need to be liquidated to avoid other legal obligations.
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Answer:
Higher equilibrium price and lower quantity
Explanation:
If demands increases and the supply remains same then the equilibrium price of the quantity increases decreases the equilibirium quantity due to high demand of quantity.
Therefore, Correct option is (d) i.e., higher equilibrium price and lower quantity