One of the ways in which monopolistic competitors differ from perfect competitors is that?

Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its

Delicious77 [7]

I think this is false

3 0

3 years ago

Casey Motors recently reported net income of $55 million. The firm's tax rate was 40.0% and interest expense was $19 million. Th

nadezda [96]

Answer:

$31.76 million

Explanation:

Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:

EVA=NOPAT-(WACC*invested capital)

NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)

Net income=Earnings before tax*(1-tax rate)

net income= $55 million

EBT=unknown

tax rate=40.0%

$55=EBT*(1-40.0%)

$55=EBT*0.60

EBT=$55/0.60

EBT=$91.67

EBIT=EBT+interest

EBIT=$91.67+$19

EBIT=$110.67

NOPAT=$110.67*(1-40%)

NOPAT=$66.41

WACC=9.0%

perating capital employed=$385

EVA=$66.41-(9.0%*$385)

EVA=$31.76 million

operating capital em

3 0

3 years ago

Summit Software, Inc., recently celebrated its fifth year of business. Jim Mueller, the proprietor, started the software manufac

kirill115 [55]

Answer:Q1. Is Summit software is gazelle? Support your answer.

Ans. .Gazelle define as a gazelle company is a high-growth company that has been increasing its revenues by at least 20% annually for four years or more, starting from a revenue base of at least $1 million. Yes from this definition, we can say that this software is gazelle.

Q2.What problems may Jim face by owning such a fast-growing business?

Ans. Faces problems that the As the business grows rapidly, there would be more expectations from the customers. They would expect for change and more innovation in their products. Mr. JM has only three employees and they are burdened with heavy load of work.

The competition arises between firms. Some might be healthy and some might be unhealthy. Unhealthy competition may lead Mr. JM to go in a wrong path.

Q3. Are gazelle more important to the economy that traditional growth business?why or why not?

Ans. Gazelles are vital for the growth of the economy as the country is being benefitted by the profit received by gazelles. Gazelles grow rapidly and hence the economy of the country grows rapidly. Traditional growths in businesses are very slow but they also bring steady profit for the country at a lower and standard level.

Explanation:

7 0

3 years ago

g Our investment manager hedges a portfolio of German Government bonds with a 3-month forward contract. The current spot rate is

siniylev [52]

<u>Solution and Explanation:</u>

The US investor is Investing in German bond and he is also hedging for the protection against the exchange rate fluctuations

So we have two types of gain, One due to bond and one due to hedging

Part B)

Interest gain = 1% [ 4% per annum ]

Gain due to price change = 3%

Total gain = 3% plus 1% = 4%

These all are in Euro if and the dollar has depreciated so actual gain in USD

Earlier Exchange rate = 0.94

Exchange rate Now = 0.85

Let the investor invested X USD , Convert this into Euro

X USD = X divided by 0.94 EURO

Gain on this is 4% in euro terms, So after 3 months X/0.94 becomes X/0.94 *1.04

Now we will convert this to USD based on current exchange rate so present value

$=x / 0.94 * 1.04 * 0.85=$ 0.9404X

So loss = X minus 0.9404X = 0.05957 = 5.957%

Part A )

Now, we can see the gain by hedging

We have gain of 0.91 minus 0.85 = 0.06 Euro / Dollar

So , we can add this gain to the current spot rate as effective rate will be spot + gain due to forward

Now we will convert this to USD based on current exchange rate so present value $=\mathrm{X} / 0.94 * 1.04 *(0.85+0.06)$ = 1.0068X

Profit = 1.0068X minus X = = 0.681%

6 0

3 years ago

A reconciliation of Zack's Company's pretax accounting income with its taxable income for 2018, its first year of operations, is

Y_Kistochka [10]

Answer:

the total deferred tax liability is $50,000

Explanation:

The computation of the total deferred tax liability is shown below:

Tax Depreciation 2019 $17500 {[$150000 ÷ 3] × 35%}

Tax Depreciation 2020 $17500 {[$150000 ÷ 3] × 35%}

Tax Depreciation 2021 $15000 {[$150000 ÷ 3] × 30%}

Total Deferred Tax Liability $50,000

Hence, the total deferred tax liability is $50,000

7 0

3 years ago