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crimeas [40]
3 years ago
8

Rolston corporation is comparing two different capital structures, an all-equity plan (plan i) and a levered plan (plan ii). und

er plan i, rolston would have 190,000 shares of stock outstanding. under plan ii, there would be 140,000 shares of stock outstanding and $2.00 million in debt outstanding. the interest rate on the debt is 8 percent and there are no taxes.
a. if ebit is $625,000, what is the eps for each pla
Business
1 answer:
Komok [63]3 years ago
6 0
<span>Texan leader who defeated Santa Anna at the Battle of San Jacinto</span>
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A company will make $74,000 in annual revenue each year for the next seven years from a new investment. The interest rate of 7.2
UkoKoshka [18]

Answer:

The present value is $395,354.84

Explanation:

The computation of the Present value is shown below

= Present value of all yearly cash inflows after applying discount factor

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,  

rate is 7.25%  

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.0725 ^ 1 = 0.9324

For Year 2 = 1 ÷ 1.0725 ^ 2 = 0.8694

For Year 3 = 1 ÷ 1.0725 ^ 3  = 0.8106

For Year 4 = 1 ÷ 1.0725 ^ 4  = 0.7558

For Year 5 = 1 ÷ 1.0725 ^ 5  = 0.7047

For Year 6 = 1 ÷ 1.0725 ^ 6  = 0.6571

For Year 7 = 1 ÷ 1.0725 ^ 7  = 0.6127

So, the calculation of a Present value of all yearly cash inflows are shown below

= (Year 1 cash inflow × Present Factor of Year 1) + (Year 2 cash inflow × Present Factor of Year 2) + (Year 3 cash inflow × Present Factor of Year 3) + (Year 4 cash inflow × Present Factor of Year 4)  + (Year 5 cash inflow × Present Factor of Year 5)  + (Year 6 cash inflow × Present Factor of Year 6)  + (Year 7 cash inflow × Present Factor of Year 7)

= ($74,000 × 0.9324 ) + ($74,000 × 0.8694  ) + ($74,000 × 0.8106 )  + ($74,000 ×  0.7558 )  + ($74,000 × 0.7047  ) + ($74,000 × 0.6571 )  + ($74,000 × 0.6127  )

= $68,997.67  + $64,333.49  + $59,984.61  + $55,929.70  + $52,148.91  + $48,623.69  + $45,336.77

= $395,354.84

We take the first four digits of the discount factor.  

4 0
3 years ago
Which of the following is NOT a proactive hiring procedure? a. ​conducting background investigations on prospective employees b.
velikii [3]

Answer:

The correct answer is letter "D": ​instilling in employees a desire to develop ethical awareness and courage to do the right thing.

Explanation:

Proactive hiring procedures are practices performed by the <em>Human Resources (HR) Department</em> of a company by which prospective employees are contacted not necessarily when there is an opening in the company but to establish a relationship with those individuals.  

Thus, <em>​instilling in employees a desire to develop ethical awareness and courage to do the right thing is an activity developed when people are already hired in a firm</em>. Then, it is not part of proactive hiring.

6 0
3 years ago
What is the total amount of cash dividends paid to common stockholders for the years ended (a) September 30, 2017, and (b) Septe
s344n2d4d5 [400]

Answer:

Note: Missing question but the full question is attached as picture below

The Cash dividends paid to common stockholders can be obtained the financing activities section of the Consolidated statement of cash flows tagged (Payments of dividends and dividends equivalents)

                            Cash dividend paid

Common stock issued and outstanding             Cash dividends

(a) September 30, 2017                                        $12,769,000,000

(b) September 24, 2016                                        $12,150,000,000

3 0
2 years ago
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,288,076
Xelga [282]

Answer:

Using the FIFO cost method:

beginning WIP 34,600 units

materials $79,000 (100% complete)

conversion $48,200 (30% complete, 70% remaining = 24,220 EU)

units started 662,700

materials added $1,594,520

conversion costs added $566,356

ending WIP 24,100

100% complete for materials

40% complete for conversion = 9,640 EU

units completed and transferred out = 34,600 + 662,700 - 24,100 = 673,200

units started and completed = 662,700 - 34,600 - 24,100 = 604,000

total equivalent units for the month:

materials 662,700

conversion = 24,220 + 604,000 + 9,640 = 637,860

total cost per EU:

materials = $1,594,520 / 662,700 = $2.4061

conversion = $566,356 / 637,860 = $0.8879

total = $3.294

cost of ending WIP:

materials = 24,100 x $2.4061 = $57,987

conversion = 9,640 x $0.8879 = $8,559.36 ≈ $8,559

total = $66,546

cost of units transferred out = $79,000 + $48,200 + $1,594,520 + $566,356 - $66,546 = $2,221,530

total units transferred out = 673,200

production cost per unit = $2,221,530 / 673,200 = $3.30

3 0
3 years ago
An investor buys an 8% municipal bond in the secondary market on a 10% basis. The investor does not accrete the bond discount an
adell [148]

Answer: C

Explanation:

This is because although the coupon rate is devoid of federal income tax any market discount is taxed as interest income earned. So so if there is a way that they can be taxed without jeopardizing their basic Federal income tax-free status, why not? The discount can be accreted annually and tax paid, or the tax can be paid at maturity or sale date.

5 0
3 years ago
Read 2 more answers
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