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2 years ago

An entrepreneur is a person who owes money to a bank or other financial institution

1 answer:

4 0

That statement is False.

An Entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit.

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Days sales outstanding. Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivab

marishachu [46]

Answer:

$230,000

Explanation:

Given that,

Days sales outstanding, DSO = 23 days

Annual sales = $3,650,000

Assume that it uses a 365 day year

Accounts receivable = (Annual sales × Days sales outstanding) ÷ 365 days

= ($3,650,000 × 23) ÷ 365 days

= $83,950,000 ÷ 365 days

= $230,000

Therefore, the Baxley Brothers has $230,000 balance in its accounts receivable.

4 0

3 years ago

You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the con

eimsori [14]

Answer:

Explanation:

In finance, short selling (also known as shorting or going short) is the practice of selling assets, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.

So in the given scenario the investor would be at lose of

Selling price = 3.74 per bushel

Purchase price = 3.61 per bushel

therefore lose of $ 0.13 per bushel you need to pay off.

3 0

3 years ago

In January the price of dark chocolate candy bars was $2.00, and Ajiâ€™s Chocolate Factory produced 80 pounds. In February the p

Natalija [7]

Answer:

a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February

1.5 elastic

b. Calculate the price elasticity of supply for Aji's Chocolate Factory in March

1.36 elastic

c. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?

If the company is producing at full capacity, then its price elasticity of supply will be perfectly inelastic even if the price increases. This is because any increase in price will not affect the quantity supplied because the company cannot increase it even if they wanted to.

Explanation:

price elasticity of supply = % change in quantity supplied / % change in price

It measures the proportional change in the quantity supplied that producers will make given a 1% change in the price of their product.

PES February = [(110 - 80)/80] / [(2.5 - 2)/2] = 0.375 / 0.25 = 1.5

PES March = [(140 - 110)/110] / [(3 - 2.5)/2.5] = 0.273 / 0.2 = 1.36

4 0

2 years ago

The required rate of return on the stock of Knight Titles is 8%. Its expected ROE is 10% and its expected earnings per share thi

tensa zangetsu [6.8K]

Answer: Ke = 8% = 0.08

ROE = 10% = 0.10

Expected EPS = $6

Plowback rate ( b) = 40% = 0.40

Dividend per share (D) = 60%x $6 = $3.60

Po = D(1+g )/ke-g

Po = $3.6(1+0.04)/0.08-0.04

Po = $3.744/0.04

Po = $93.60

The current market price is $93.60

The price-earnings ratio = market price per share/Earnings per share

= $93.6/$6

= 15.6

The correct answer is C

Explanation: The price-earnings ratio is the ratio of market price per share to earnings per share. In this scenario, it is important to obtain the market price per share using the above formula. Thereafter, the market price per share is divided by the earnings per share. There is need to calculate the dividend per share based on the retention rate of 40%. since the retention rate is 40%, the dividend pay-out rate will be 60%. Thus, dividend is 60% of the expected earnings per share. The estimation of growth rate (g) is based on Gordon's growth model, which is g = r x b. r represents return on equity while b denotes the plowback(retention rate).

4 0

3 years ago

The following table summarizes Nowman's non-cancelable operating lease payments with remaining terms in excess of one year for t

Anna007 [38]

Answer:

$1,872,000

Explanation:

The amount of operating lease obligation that needs to be reported on the balance sheet on December 31, 2018 is the total lease payment in next following years

= $220,000 + $180,000 + $240,000 + $210,000 + $190,000 + $832,000

= $1,872,000

If you want to know the payment lease in 2024 - 2027, we do as following:

The average of prior years between 2019 to 2023

= ($220,000 + $180,000 + $240,000 + $210,000 + $190,000)/ 5 years

= $208,000

And for years after 2023, the annual lease payment should be treated as the average of prior years between 2019 to 2023, then lease payment in 2024 - 2027 is $208,000 annually. Total $832,000 in 4 years.

8 0

3 years ago