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3 years ago

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What is the difference between accounting profits and economic profits? which of the two concepts is more appropriate for explai

ning decisions made by entrepreneurs? explain?

1 answer:

Leya [2.2K]3 years ago

8 0

Economic profits. An entrepreneur is more interested in economic profits

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Hsu Company reported the following on its income statement: Income before income taxes $302,634 Income tax expense 90,790 Net in

7nadin3 [17]

Answer:

5.79 times

Explanation:

The times interest earned ratio tells us the number of times the company's made earnings in multiple of its debt interest obligation.

The formula for times earned interest ratio is the income before interest and taxes divided by the interest expense.

income before tax is $302,634

income before interest and taxes= $302,634+$63,228=$365,862.00

times interest earned ratio=$365,862.00/ $63,228= 5.79 times

8 0

3 years ago

Suppose you want to realize a future value of $150,000 in 30 years on an investment you make. The average annual rate of return

tekilochka [14]

Answer:

PV= $12,111.93 = $12,112

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Interest rate (i)= 8.75% = 0.0875

Number of periods (n)= 30

<u>To calculate the present value (PV), we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 150,000 / (1.0875^30)

PV= $12,111.93

4 0

2 years ago

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8

Soloha48 [4]

Answer:

The amount of the last annual dividend paid is <u>$4.3</u>.

Explanation:

Given:

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.

Now, to find the amount of last annual dividend paid.

Let the amount of last annual dividend paid be $l.$

Price of per share ( $p$ ) = $\$42.$

Rate of return ( $r$ ) = $12.2\%.$

Rate of dividend growth ( $g$ ) = $1.8\%.$

Now, to get the amount of last dividend paid we put formula:

$p=\frac{l(1+g)}{r-g}$

$42=\frac{l(1+1.8\%)}{12.2\%-1.8\%}$

$42=\frac{l(1+0.018)}{0.122-0.018}$

$42=\frac{l\times 1.018}{0.104}$

<em>Multiplying both sides by 0.104 we get:</em>

<em /> $4.368=1.018l$ <em />

<em>Dividing both sides by 1.018 we get:</em>

$4.3=l$

$l=\$4.3.$

Therefore, the amount of the last annual dividend paid is $4.3.

6 0

3 years ago

Future Value of Multiple Annuities Assume that you contribute $150 per month to a retirement plan for 20 years. Then you are abl

love history [14]

Answer:

$641,455.26

Explanation:

Calculation to determine the value of your retirement plan after 40 years

First step is to determine FV Using financial calculator

N = 40*12 = 480

I = 8%/12 = .6667

PV = 0,

PMT = $150

CPT FV =$523,651.17

N = 20*12 = 240

I = 8%/12 = .6667

PV = 0

PMT = $200 ($350 - $150)

CPT FV =$117,804.08

Now let determine the value of your retirement plan after 40 years

Sum of FV =$523,651.17+$117,804.08

Sum of FV =$641,455.26

Therefore the value of your retirement plan after 40 years will be $641,455.26

5 0

3 years ago

A restaurant review published in the local newspaper is an example of ________.

V125BC [204]

<span>A restaurant review published in the local newspaper is an example of publicity. When the review they can increase the number of customers.now a days nobody is visiting restaurants without checking reviews. Negative reviews will definitely spoil the business. Hotel with more positive reviews using it for publicity.</span>

6 0

3 years ago