1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kkurt [141]
3 years ago
9

DAR Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under P

lan I, the company would have 170,000 shares of stock outstanding. Under Plan II, there would be 120,000 shares of stock outstanding and $2.4 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes.If EBIT is $450,000, what is the EPS for each plan?plan 1:plan 2:If EBIT is $700,000, what is the EPS for each plan?plan 1:plan 2:What is the break-even EBIT?
Business
1 answer:
spin [16.1K]3 years ago
8 0

Answer:

The answer is given below;

Explanation:

                           

Download xlsx
You might be interested in
Tread Inc. is the market leader for sports shoes in the subcontinent of Gavon. Though the brand has not introduced any new produ
Harman [31]

Answer: The answer is b

Explanation:

The concept of advertising response function is based on the theory of marginal physical product and shows the relationship between advertising and the level of consumption of the goods by the consumers. The theory of marginal physical product states that when there is a change in total product resulting from one unit change in the quantity of the resources used per unit of time. When average product is increasing ,marginal physical product is greater than average product,when average product is maximum ,marginal physical equals average product .when average product is decreasing marginal physical product is less than average product.The theory of marginal physical product can also be called the law of diminishing return which states that if increasing quantities of one factor of production are used in conjunction with a fixed quantity of other factors then, after a certain point each successive unit of the variable factor will make smaller and smaller addition to the total output. In this case, the law tells the Trend Inc when to stop adding more input of the variable factor to a fixed factor.

Invariably, we are saying that it high time for Trend Inc, should spend proportionately less on advertising than on newer line. It should now spend more money on bringing of new product into the market than spending more on the advertisement of the sport shoes because at a certain point the demand for the old product will fall when diminishing return must have set in on the product demand.

5 0
3 years ago
If government spending occurs, there will be a(n) _______ of private-sector investors, described as a(n) _______ of that spendin
MrRa [10]

If government spending occurs, there will be a(n)crowding out of private-sector investors, described as a(n) opportunity cost of that spending.

<h3>What is government spending?</h3>

This is the term that is used to refer to all forms of expenditures that the government of a place may embark on.

Spending is an expansionary policy that helps to stimulate the government of a place.

Read more on government spending here:

brainly.com/question/25125137

#SPJ1

3 0
1 year ago
Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred.
satela [25.4K]

The May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system are:

Charlie Company Journal entries

May 13

Debit Account receivable $360

(8×$45)

Credit Sales $360

(To record credit sales)

May 13

Debit Cost of goods sold $208

(8×$26)

Credit Merchandise inventory $208

(To record cost of goods sold)

May 16

Debit Sales return and allowances $45

Credit Account receivable $45

(To record goods returned)

May 16

Debit Merchandise inventory $26

Credit Cost of goods sold $26

(To record cost of goods sold returned)

May 23

Debit Cash $302

($315-$13)

Debit Sales discount $13

(4%×$315)

Credit Account receivable $315

($360-$45)

Learn more here:

brainly.com/question/16912611

3 0
2 years ago
When the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually for a selling price of $
Gre4nikov [31]

Answer:

casate conmigo cikitita

Explanation:

marry me little girl

6 0
2 years ago
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The b
Cerrena [4.2K]

Answer:

Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

Explanation:

The journal entry is given below

Insurance expense A/c Dr $2,400

        To Prepaid Insurance $2,400

(Being insurance expense is recorded)

The computation is shown below:

= Insurance premium ÷ number of months × required months

= $4,800 ÷ 4 months × 2 months

= $2,400 months

The 2 months is taken from November 1 to December 31

6 0
3 years ago
Other questions:
  • AlphaBrona Industries manufactures 50,000 components per year. The manufacturing cost of the components was determined as follow
    8·1 answer
  • _____________ is the new-product development phase where hope springs decides that the flavor additive has enough market interes
    10·1 answer
  • Which tasks are commonly done by employees in the Energy cluster? Check all that apply.
    11·2 answers
  • Aberecrombie Fitch is discriminating aganist people or do you think thry exrcsing thier right as a private business to hire base
    7·1 answer
  • Cobe Company has already manufactured 19,000 units of Product A at a cost of $25 per unit. The 19,000 units can be sold at this
    13·1 answer
  • If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change
    7·1 answer
  • what term refers to selling goods in a foreign market at a price that is far below the cost of production? A. profiteering B. sc
    11·1 answer
  • Temporary investments such as in trading securities are a.recorded at fair market value and reported at fair market value b.reco
    7·1 answer
  • The following data were gathered to use in reconciling the bank account of Photo Op. Company: Balance per bank $ 14,400 Balance
    12·1 answer
  • In 2020, Indigo Corporation had pretax financial income of $175,000 and taxable income of $130,000. The difference is due to the
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!