Answer:
$16,800
Explanation:
The amount of the note payable as the current position of long term notes payable on the balance sheet as of December 31, 2016 can be calculated by just dividing the principal amount by the number of periods it has been borrowed for
Calculation: 84000/5 = $16,800
Answer:
Tax shield on depreciation = 600
Explanation:
given data
new piece of equipment = $11,000
salvage value = $1,000
marginal tax rate = 30%
average tax rate = 20%
time period = 5 year
to find out
net effect of annual depreciation on the free cash flow
solution
we know here cost of asset and Salvage value so we get depreciation cost
depreciation cost is = 11000 - 1000 = 10000
and
annual depreciation = 2000
so that Tax shield on depreciation will be
Tax shield on depreciation = 2000 × 30%
Tax shield on depreciation = 600
In this situation, the Average fixed cost wll be INCREASED.
AFC (average fixed cost) is calculated by adding up all total fixed cost within a certain period and divide it with the total years. If a business experienced an increased in any way to its fixed cost, the average will automatically increased.
Answer: Family.
Explanation:
The family a consumer is born into, strongly influences the way that consumer would make purchase for the rest of their lives. This occurs because in the family, the consumer is groomed to love a certain type of food, fashion and develop a specific type of taste that remains with them as long as they live.
Answer:
12.6%
Explanation:
Using the Capital Market Pricing Model (CAPM) to compute the expected rate of return on Dee's Fashion stock.
Expected rate of return = 
Where R(f) = risk free rate of return, or market return less risk premium = 12.6% - 8.7% = 3.9%
= the risk of the stock relative to the market risk. In this case, beta = 1, since the company is equally as risky as the market (as noted in the question)
R(m) = return of the stock market = 12.6%
Therefore, the expected rate of return on the stock
= 3.9% + 1 * (12.6% - 3.9%)
= 3.9% + 8.7%
= 12.6%.
The return is the same as the stock market return because the stock is equally as risky as the market.
