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Gwar [14]
4 years ago
14

Companies generate income from their "regular" operations and from things like interest on securities they hold, which is called

non-operating income. Mitel Metals recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non-operating income. It had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firm's operating income, or EBIT?
Business
1 answer:
Gekata [30.6K]4 years ago
4 0

Answer:

$1,500

Explanation:

Given that,

Sales = $9,000

Operating costs = $6,000

Depreciation = $1,500

Interest rate = 7%

Federal-plus-state income tax rate = 40%

Operating income or EBIT:

= Sales - Operating costs - Depreciation

= $9,000 - $6,000 - $1,500

= $1,500

Here, the interest rate and taxes were ignored as we want to determine the operating income or earnings before interest and taxes. Interest on bonds is a non operating income.

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If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate
Mariana [72]

Answer:

to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars

Explanation:

spot x (1 + (US rate - Australia rate) x time)

0.96 x (1+(0.03-0.05)x1 year) =

0.96 x 0.98 = 0.9408 forward exchange rate

$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars

3 0
3 years ago
The price-elasticity of demand coefficient, Ed, is measured in terms of:_______
Kaylis [27]

Answer:

c. percentage change in price and percentage change in quantity demanded.

Explanation:

A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.

The price-elasticity of demand coefficient, Ed, is measured in terms of percentage change in price and percentage change in quantity demanded.

The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.

7 0
3 years ago
What is the purpose of jim lentz’s series of presentations to toyota employees in california?.
Serggg [28]
<h3>Answer</h3>

To address employees concerns and provide details about relocation.

<h3></h3>

Explanation

CEO Jim Lent addressed the employees at Toyota to their concerns and to inform them about the relocation that is planned at a board level and then it is to be implemented.

CEO of Toyota is therefore addressing the employees to provide them details about relocation and to address their concerns.

<h3>Conclusion</h3>

Jim Lent CEO of Toyota, addressed the employees to provide them details about relocation and to address their concerns.

Learn more about Business at brainly.com/question/26562433

6 0
3 years ago
Match the following terms to their definitions: 1. privatization 2. restructuring 3. agent 4. leveraged buyouts 5. underpricing
RUDIKE [14]

Answer:

1) UNDERWRITE involves the act of taking on any risk that might be related with the issue of a new security.

2. BEST EFFORTS is the responsibility of sharing a security without transferring the risk associated with the new issue from the company to the investors.

3. UNDERWRITING SYNDICATE involves a group of investors formed to share the risk of a security offering.

4.UNDER PRICING is the process of setting the price of a new security slightly below the market value to ensure a receptive sale.

5. AFTERMARKET is a secondary market where securities are traded after its initial offering to the public.

6.AGENT is one who sells or places an asset for another party.

7. SHELF REGISTRATION permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

8. LEVERAGE BUYOUT occurs when either management or another investment group borrows the needed cash to rebuy all traded shares from the shareholders.

9. RESTRUCTURING involves the divisions and products are sold and assets redeployed into better yielding areas.

10. PRIVATIZATION is a situation Investors that take a company public, the investment bankers sell companies previously owned by governments.

8 0
3 years ago
What are the relationship between management and motivation
Lina20 [59]
Hello there,

The difference between \boxed{management} and \boxed{motivation} is that the word management means to manage something carefully and good. And the word motivation is to motivate someone to do something weather good or bad.

~Jurgen
4 0
3 years ago
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