Answer:
7%
Explanation:
the firm’s effective interest rate on its borrowing= %paid in form of LIBOR+ % at which bond was issued- % of fixed received.
=5%+ 8%- 6%
=7%
Answer:
Net cash flow from investing activities is $47.2 million -$58.6 million =-11.4 million.
Explanation:
Draft Cashflow Statement.
Operating Activities; $0.0 million
Investing Activties;
Cash Inflows;
Sales of ; investment $32.0 million,plus sales of Land $15.2 million =$47.2 million.
Cash outflows; Purchase of ; treasury stock -$21.2, plus equipment -$25.2 million, plus patent -$12.2 million =-$58.6 million
Net cash flow from investing activities is $47.2 million less $58.6 million=-11.4 million.
Financing Activities;
Issues of common stock $40.4
Note that sales of own common stock is a financing activity
Answer:
Income = $30,000
Explanation
<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product </em><u><em>with he highest contribution per unit of the scare resource</em></u>
Product Cont/unit machine hr /unit cont/hr Ranking
A $8 2 hrs $4/hr 2nd
B $18 3 hrs $6/hr 1st
<em>Hence the company should allocate the resource to the product B</em>
<em>Hence the total contribution</em>
= 5000 hrs × $6 per hr.
= $30,000
Income = $30,000
A monopoly is a market for a good or service that wants to take over another company.
Answer:
The correct answer is (B)
Explanation:
Producers are influenced by the benefits and profits they hope to pick up from the products or administrations in a free market economy. The idea of producers is to create goods and services and sell them at maximum profits because they feel consumer will buy their products because they need them. A profit motive is generally beneficial to the overall economy of the country. It is expected to give a motivating force to create productivity and development.
