Answer and explanation:
In the corporate world, outside or external financing resources refer to all the sources from where a business can obtain the necessary capital to handle its operations without using the firm's assets. Common examples of external financing resources are:
- Venture Capitals:<em> funding performed at an initial stage of companies after making research on the market and the company.
</em>
- Term loans:<em> provided by financial institutions that profit from the interest rate established in the loan or assets as collateral in case of payment failure.
</em>
- Debt Factoring:<em> short-term financing in which an organization sells its account receivables at a discount.</em>
A customer owns shares of restricted stock and now intends to sell them. if the proper forms are filed with the sec, the customer may sell these shares Over a 90-day period.
The stock exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded. The central function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information regarding securities trading on that exchange.
The exchange enables businesses to raise capital and investors to make informed decisions based on real-time pricing information. An exchange can be a physical location or an electronic trading platform. Bitcoin He is like one stock and advisers do not recommend investing the majority of his portfolio in one company. Planners suggest that if you're passionate about Bitcoin, don't invest more than 1% to 10% in it at most.
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Answer:
1,875,000 Economic Value Added
Explanation:
Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added
This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.
3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes
18,000,000 x 5% = (900,000) Required Return
1,875,000 Economic Value Added
The amount that must be put aside now is $458,796.85.
<h3>How much should be put aside now?</h3>
The first step is to determine the future value of the annuity:
Future value = yearly payment x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- r = interest rate = 6%
- n = number of years = 20
$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65
Now, determine the present value of this amount: $1,471,423.65 / (1.06^20) =$458,796.85
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<span>We know that Profit = Earnings - Cost</span>
Case 1: Sold as is
Profit = (300 fans* $20/fan) - (300 fans*
$55/fan)
Profit = - $10, 500 (deficit)
Case 2: Processed further then sell
Profit = (300 fans* $90/fan) – [(300 fans*
$55/fan)
+ (300 fans* $40/fan)]
Profit = - $1, 500 (deficit)
<span>Since Case 2 has lower deficit, then it is better to
process the fans further then sell to normal selling price.</span>
