Answer:
The pp's new value of operations would be $487,805. The right answer is e
Explanation:
According to the given data we have the following:
ke=12%
kd=8%
wd=30%
we=70%
To calculate the pp's new value of operations we would have to calculate the WACC as follows:
WACC=we*ke+wd*kd*(1-t)
WACC=70%*12%+30%*8%*(1-0.4)
WACC=9.84%
Therefore, pp's new value of operations=EBIT(1-t)/WACC
=$80,000(1-0.4)/9.84%
=$487,805
The pp's new value of operations would be $487,805
Answer:
Lee buys insurance to protect her home after crime rates go up
Explanation: Property insurance gives protection against majority of risks that can occur to a property.
Homeowners and Renters insurance are two types of property insurance. They usually provide insurance against personal property.
Carmen insuring her car is known as motor vehicle insurance.
The New Deal changed the role of government completely. Before the New Deal, government had essentially no role in steering the economy or in providing for the people. After the New Deal, the government has come to play a huge role in both of these things.
Before the New Deal, the government was expected to be more or less laissez-faire. It was supposed to just stay out of the way and let the economy rise or fall "naturally." If people were too old to work, they needed to rely on family. If a bank failed, its depositors were out of luck. The New Deal changed all of that.
Answer:
Simple Payback period is 2.52 years.
Discounted Payback period is 2.97 years
Explanation:
Payback period is the number of years that a project takes to recover the project's initial investment.
Simple Payback
Project A
Time: 0 1 2 3 4 5
Cash flow –$1,500 $550 $630 $620 $400 $200
Payback period = 550/550 + 630/630 + (1500-550-630)/620 = 2.52 years
Payback period = Approximately 2.52 years
In simple term it will take 2.52 years to recover the initial investment.
Discounted payback
Project A
Time: 0 1 2 3 4 5
Cash flow –$1,500 $550 $630 $620 $400 $200
PV @ 9% –$1,500 $505 $530 $479 $283 $130
Payback period = 505/505 + 530/530 + (1500-505-530)/479 = 2.97 years
Payback period = Approximately 2.97 years
It will take about 2.97 years to recover the initial investment of $1,500 using discount rate of 9%
Answer:
The transfer price is $452.85
Explanation:
The computation of the transfer price is shown below:
= Selling price + shipping cost + import duties - commission charges - advertising expenses
= $450 + $17.50 + $21 - $34 - $1.65
= $452.85
The shipping cost and import duties should be added whereas commission charges and the advertising expenses should be deducted while computing the transfer price
