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2 years ago

What two elements do you need to know in order to gauge whether your post-college debt will be affordable?

1 answer:

8 0

The two elements we need to know in order to gauge whether your post-college debt will be affordable are given below.

Amount owed
Future income

Debt entails borrowing money directly, while equity means selling a stake in your company in the hopes of securing economic backing. Both have professional and cons, and many companies pick to use an aggregate of the two financing answers.

Debt approaches the quantity of money which needs to be repaid lower back and financing manner offering price range for use in commercial enterprise sports. A crucial characteristic in debt financing is the reality that you aren't losing ownership of the corporation.

Debt is something owed by way of one party to every other. Examples of debt include amounts owed on credit score cards, car loans, and mortgages.

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Ginny currently earns a (real or nominal) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.0

rewona [7]

Answer:

Her nominal wage increase by: (12.48/12)-1= 0.04= 4%

Her real wage decreased by: 4% - 7$= -3%

Explanation:

Giving the following information:

Ginny currently earns a (real or nominal) wage of $12.00 per hour. Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 turned out to be 7%, not 4%.

Her nominal wage increase by: (12.48/12)-1= 0.04= 4%

Her real wage decreased by: 4% - 7$= -3%

5 0

3 years ago

Assume that Jack, Hal, and Sophia enter into a valid contract for the sale of the restaurant and for the covenant not to compete

Andrei [34K]

Answer: C. Reformation

Explanation: A non-compete agreement or clause is a legal binding entered into by two or more parties which restricts the parties from being in competition with the other usually through the sale of similar product. However, in the context above, since the non-compete clause has been breached by Jack, and the judge feels the time constraint in the clause was unreasonably long, The reformation process will be best to remediate the situation, which refers to the change or alteration of the terms of an existing document using the judicial process and requires the conformation of the parties involved.

6 0

3 years ago

Star, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one th

Dmitry_Shevchenko [17]

Answer:

Explanation:

1) The earnings per share are:

EPS = $39,100/17,000 shares

EPS = $2.30

Cash flow for the company is:

Cash flow = $2.30 X 150 shares

Cash flow = $345

2) Need to determine the EPS of the firm under the proposed capital structure. The market value of the firm is:

MV = $47*17,000 = $799,000

Under the proposed capital structure, the firm will raise new debt in the amount of D = 0.20*$799,000 = $159,800 in debt. The number of shares repurchased will be:

Shares repurchased = $159,800/$47 = 3400

Under the new capital structure, the company will have to make an interest payment on the new debt. The net income with the interest payment will be:

NI = $39,100 – 0.065*$159,800 = $39100-10,387= $28,713

EPS under the new capital structure will be:

EPS = $28,713/13,600 shares = $2.11

Shareholder cash flow = $2.11*150 shares = $316.5

3) In this case, capital structure is irrelevant because shareholders can create their own leverage or unlever the stock to create different capital structures. This has no connection with the capital structure that firm chooses.

6 0

3 years ago

Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0

bagirrra123 [75]

Answer:

$11,000 cost, five-year life, and $1,000 salvage value

Explanation:

given data

cost = $11,000

residual value = $1,000

estimated to be good = 5,000 hour

solution

as per the straight-line method

formula to compute the depreciation expense that is express as

depreciation expense = (Purchase value of generator - residual value) ÷ (estimated useful life) .......................1

and

here by considering here these three item

and other information that is not relevant that ignore

depreciation expense = ($11,000 - $1,000) ÷ 5 years = 2000

so $11,000 cost, five-year life, and $1,000 salvage value

3 0

3 years ago

What does the Lorenz Curve illustrate about the economy?

Alex_Xolod [135]

Answer:

Lorenz curve can be understood as a graphical representation of distribution of wealth or income among the population in a given economy.

Explanation:

Lorenz Curve was proposed by Max O. Lorenz in the year 1905 to represent inequality in the distribution of income among the given population. This curve illustrates that the distribution of wealth is not equal, where one section of the population has all the wealth or income of the economy and the other section of the population is left with none. Whereas in the case of perfect equality, each section of the population should receive an equal amount of wealth of the economy. This means that N% of the society should always have N% of income and not more and not less than that. Thus, this situation is hypothetical and thus, the idea of the Lorenz Curve comes into consideration.

6 0

3 years ago