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3 years ago

Capital brought into a business in exchange for a percent of ownership in the business is called

Business

1 answer:

neonofarm [45]3 years ago

3 0

Answer:

D: Equity financing

Explanation:

Equity is ownership in the business - equity financing means giving up ownership in order to secure financing.

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Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has

Alex_Xolod [135]

Answer:

Colsen Communications

Project's Cash Flow for the first year:

Sales revenues $20,000,000

Operating costs

(excluding depreciation) 14,000,000

Interest expense 4,000,000

Net cash flow $2,000,000

Explanation:

a) Data and Calculations:

Sales revenues $20 million

Operating costs (excluding depreciation) 14 million

Depreciation 4 million

Interest expense 4 million

Income Tax 40%

WACC is 13%

Income Statement for the first year:

Sales revenues $20,000,000

Operating costs

(excluding depreciation) 14,000,000

Depreciation 4,000,000

Operating income $2,000,000

Interest expense 4,000,000

Income before tax ($2,000,000)

Income Tax 40%

Project's Cash Flow for the first year:

Sales revenues $20,000,000

Operating costs

(excluding depreciation) 14,000,000

Interest expense 4,000,000

Net cash flow $2,000,000

4 0

3 years ago

Odeletta Corporation is considering an investment of $ 506 comma 000 in a land development project. The investment will yield ca

elena-14-01-66 [18.8K]

Answer:

$318,680

Explanation:

initial investment ($506,000)

cash flow year 1 = $212,000

cash flow year 2 = $212,000

cash flow year 3 = $212,000

cash flow year 4 = $212,000

cash flow year 5 = $212,000

discount rate 9%

present value of an ordinary annuity for 5 years and 9% discount rate = 3.89

the net present value = (yearly cash flow x annuity value) - initial investment = ($212,000 x 3.89) -$506,000 = $824,680 - $506,000 = $318,680

The net present value of an investment equals the difference between the present value of the cash flows generated by the investment minus the initial cost of the investment.

5 0

3 years ago

Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $

AlladinOne [14]

Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

5 0

3 years ago

g If the economy experiences economic contraction, the government can combat this with an Group of answer choices increase in go

Charra [1.4K]

Answer:

increase in government purchases

Explanation:

If there is a contraction in the economy, the government should conduct expansionary policies to increase money supply.

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

5 0

3 years ago

Brandon has completed the first draft of his business report and is in the third phase of the writing process, revision. what sh

Dmitry [639]

The phase 3 of a business report is the revision phase.
The revision phase involves revising, proof reading and evaluation.
In this phase, improving the content and sentence structure of the report, correcting the grammer, spelling, punctuation, and format of the report and adding, cutting, and recasting what has been written.

Therefore, the correct answer to the question is äll answer choices are correct".

3 0

3 years ago