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34kurt
2 years ago
7

sand key development company estimates that it will generate an operating income of $3.25 million. which financing option should

sand key use?
Business
1 answer:
Nataly_w [17]2 years ago
5 0

The financing option that the sand key development company should use is the equity financing option. The correct option is c.

<h3>What is financing?</h3>

A firm or business gets funded through financing through this technique. On interest rates, this is stated. Banks handle financing; they give businesses funds and charge them an interest in exchange.

Equity financing is when you increase the money of the company by sharing the shares of the company with the shareholders or new investors. The investors use the stake minority.

Thus, the correct option is c, The equity financing option.

To learn more about financing, refer to the link:

#SPJ4

The question is incomplete. Your most probably complete question is given below:

We don't have enough information to answer this.

Sand Key is indifferent between the two options.

The equity financing option.

The debt financing option.

They should abandon plans for expansion.

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Answer: length- roads, yard stick, square footage in a room

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6 0
3 years ago
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Suppose you have three producers of oil A, B, and C, with extractions costs of $8, $10, and $12 per barrel of oil. Assume there
saw5 [17]

Answer:

From the information given in the question, producer A will be only producer that can produced the oil if oil market price is $9/barrel as producer B and C will not cover the extraction cost at this price. Hence,  only 100 barrel oil is produced

Explanation:

Given data:

Extraction cost of oil producer A = $8

Extraction cost of oil producer B = $10

Extraction cost of oil producer C = $12

Total production of oil per day = 100

From the information given in the question, producer A will be only producer that can produced the oil if oil market price is $9/barrel as producer B and C will not cover the extraction cost at this price. Hence,  only 100 barrel oil is produced

8 0
4 years ago
Jarrod receives a scholarship of $28,000 from Riggers University to be used to pursue a bachelor's degree. He spends $16,800 on
Diano4ka-milaya [45]

Answer:

The amount might exclude $18,200 from the Gross Income.

Explanation:

The gross income is the amount which the person earn or gain before anything is taken out or deducted for the taxes or the other deductions.

So, in this case, the Gross income is as follows:

The person received the scholarship worth $28,000, out of which he spend $16,800 on tuition, %5,600 on room, $4,200 for the personal expenses and $1,400 on books and supplies.

From all the expenses which will be excluded from the Gross Income are the amount of  fees and the amount spent on books and supplies as these are required for the course.

So, the amount which is excludable from Gross Income is:

Amount which is excludable = Tuition + books

= $16,800 + $1,400

= $18,200

6 0
4 years ago
Explain how you would value a stock. Provide an example of a valuation of a stock based on retrieved real data. Include evidence
beks73 [17]

Answer with Explanation:

There are numerous stock valuing models but here, I will use Dividend Valuation Model which is based on finding the intrinsic value of Stock which is the present value of the stock at a required rate of return. The formula to calculate Intrinsic value of stock is given as under:

P0= D0   *  (1 + g) / (ke - g)

Here

P0 is the intrinsic value of the stock

D0 is the dividend just paid

g is the growth rate

ke is the investor's required rate of return

The model doesn't holds if the company doesn't pays Dividend.

Now suppose that the Dividend just paid by Apple is $20 per stock. The anticipated growth rate of dividend is 10% and the required rate of return is at 15%.

By putting values in the above equation, we have:

P0= $20 * (1 + 10%) / (15% - 10%)

= $20 / (15% - 10%)

= $400 per share

The value of stock of Apple is $400 per share which must be its fair market value as per the Dividend Valuation Model.

As per the model, if the value of stock is higher as per dividend valuation model then we must purchase the stock as it will generate higher value and vice versa. The inherent limitation of the model is that it assumes that the dividend is growing at constant rate and is consistently paid. The main disadvantage of Dividend valuation model is that it doesn't account for political factors, economical factors, evolving business risks, technological factors, etc.

8 0
4 years ago
At the beginning of the year, managers at King Industries estimated $400,000 in manufacturing overhead, 20,000 direct labor hour
zaharov [31]

Answer:

Allocated Overhead= $440,000

Explanation:

Giving the following information:

The estimated overhead= $400,000

Estimated direct labor hours= 20,000

Actual direct labor hours= 22,000 direct labor hours

First, we need to calculate the estimated overhead rate. Then, allocate overhead based on actual direct labor hours:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 400,000/20,000= $20 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH=20*22,000= $440,000

6 0
3 years ago
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