Answer:
$32,264.07
Explanation:
The computation of the Break-even EBIT is shown below:
(EBIT ÷ Number of shares) = (EBIT - Interest) ÷ Number of shares
(EBIT ÷ 10,900) = (EBIT - $66,000 × 0.08) ÷ (10,900 - (66,000 ÷ $37))
(EBIT ÷ 10,900) = (EBIT - $5,280) ÷ (10,900 - 1,783.78)
(EBIT ÷ 10,900) = (EBIT - $5,280) ÷ (9116.22)
After solving this, the value of break-even EBIT is $32,264.07
Answer:
Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed. it can help you identify areas where you spend too much money
Answer:
Option A
Explanation:
Effectiveness refers to the capability of an institution to produce the desired result or the required performance. Once something is considered to be successful, it implies it has a planned or anticipated impact, or it generates a deep, vibrant impression.
In other words, The magnitude to which goals are accomplished and to what extent perceived needs are met is effective. Unlike efficiency, effectiveness is measured in regards to expenses and while output implies "doing the right thing," effectiveness, means "just doing correct thing."
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.