Answer:
option (d) $500
Explanation:
Data provided in the question:
Reynolds Construction's value of operations = $750 million
short-term investments = $50 million
accounts payable = $100 million
notes payable = $100 million
long-term debt = $200 million
common stock = $40 million
retained earnings = $160 million
Now,
Firm value of equity
= Free cash flow value + Investments - Debt - Notes payable
= $750 million + $50 million - $200 million - $100 million
= $500 million
Hence,
the correct answer is option (d) $500
Answer:
It is more profitable to raise the selling price by $2.
Explanation:
To determine whether the company should raise the selling price, we need to determine the effect on income. <u>The best option is the one with the higher sales revenue.</u>
Sales revenue= selling price * number of units
<u>Current:</u>
Sales revenue= 5.5*2,200= $12,100
<u>Proposal:</u>
Sales revenue= 7.5*1,800= $13,500
It is more profitable to raise the selling price by $2.
Answer:
The correct asnwer is $-214 billion.
Explanation:
A surplus occurs when an account exceeds the credit after having paid all its debts and obligations.
As the example says, assuming that China’s net debt forgiveness was zero in 2012, then the net balance of China's financial account balance would be -214 billion.
This means that China would be facing a deficit.
A defit means that more money comes out of our company's account than it enters.
Which causes China to have a<u> negative balance account.</u>
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