Answer:
C
Explanation: I think its C cause it just makes sense lol
Answer: $400,000
Explanation: Given the following :
Operating Income (EBIT) = $4,000,000
Weighted average cost of Capital (WACC) = 10% = 0.1
Operating capital = $20,000,000
Taxes = 40% = 0.4
Economic Value Added (EVA) is given by;
EBIT x (1-Tax) - (WACC x Operating capital)
$4,000,000 × (1-0.4) - (0.1 × 20,000,000)
$4,000,000 × (0.6) - (2,000,000)
$2400,000 - $2,000,000
=$400,000
Answer:
The total non controlling interest after the additional shares are issued is equal to $252,000.
Explanation:
Before the issue Sage co's had 20,000 shares with total equity value of $500,000. After the issue of 5000 shares worth $200,000, the total number of shares and equity would be -
Total number of shares = 25,000 ( 20,0000 + 5000 )
Total equity value = $700,000
Now Thyme inc owns 16,000 number of shares , which means that minority holds 9000 number of shares . Now the price per share would be =
TOTAL EQUITY / NUMBER OF SHARES
$700,000 / 25,000
= $28
NON CONTROLLING INTEREST = Minority shares x Price per shares
= 9000 x $28
= $252,000
Price floor.
A floor, in real life, is at the bottom, below you — this then makes sense in business to say that a ‘floor’ represents the minimum value of something — in this case the price of video games.
In real life, a ceiling is above you, indicating that it could be used as a representative of a maximum value of something, like the price of a video game.
So, if we were to say that $120 was the ‘price ceiling’ for video games, then we would basically be saying that $120 is the most a video game could cost. If we were to say that $100 was the ‘price floor’ for video games, we would be saying that $100 is the minimum value that the price of a video game could assume.
I think it is C average total cost is minimized
