Answer:
A. Business interruption insurance
Explanation:
Business interruption insurance is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
Answer:
Check the explanation
Explanation:
Check the attached image below for:
1) Value of equity = EBIT x (1 - tax) / Cost of equity
2) Stock Price
3) PV of tax shield
Value of the firm
4) Price per share
5) No. of shares repurchased
6) New price
7) Value of equity = (EBIT - Interest) x (1 - tax) / Cost of equity
Answer:
$6,278
Explanation:
The discount of issuance of bond will be amortized until period of maturity while Total interest expense on a discounted bond is the addition of amortization of the discount amount and coupon payment.
Therefore;
Coupon payment = $73,000 × 8%
= $5,840
Discount on the bond = $73,000 - $70,810
= $2,190
Discount amortized per year = $2,190/5
= $438
Total interest expense = Coupon payment + Amortization of discount
= $5,840 + $438
= $6,278
Answer:
Their debt ratio is about 0.039.
Explanation:
Given information:
liabilities = $16700
Assets = $433,000
We need to find their debt ratio.

Substitute the given values in the above formula.




Therefore, their debt ratio is about 0.039.
Answer:
differential analysis:
No further process Process further Differential
amount
Sales revenue $410,000 $1,213,400 $803,400
Production costs ($340,000) ($580,000) ($240,000)
Operating income $70,000 $633,400 $563,400
The company should process further and sell products B and C because its operating income will increase by $563,400.