One disadvantage of a direct democracy might be

The Alto Horns Corp. is planning on introducing a new line of clarinets. They expected EBIT is $900,000. The unlevered cost of e

Vitek1552 [10]

Answer:

The correct option is B,correct annual cash flows to be used under WACC method is $640,000

Explanation:

Expected earnings before interest and tax is $900,000

interest expense on the 10% interest perpetual debt=10%*$1000,000=$100,000

earnings before tax=EBIT- interest expense=$900,000-$100,000=$800,000

earnings after tax=earnings before tax-tax expense

tax expense=earnings before tax*20%=$800,000*20%=$160,000

earnings after tax=$800,000-$160,000=$640,000

The correct amount of annual cash flow to be used under weighted average cost of capital method is $640,000 which after interest on debt and taxes have been deducted.

4 0

4 years ago

Ashley, a purchasing manager, tells Franklin, the human resource manager, that she has selected a candidate to be her purchasing

ale4655 [162]

Franklin replies that Ashley should add information about the job responsibilities, work schedule, and starting date.

<u>Explanation:</u>

The job offer letter is delivered by the authority to permit and ask an individual officially to join the firm or an organization under given time period by responding in respective manner. This offer letter for job joining carry various basic information like

Job profile: which carry the type of work candidate need to perform in firm.
Job responsibilities: carry point wise all the work or duties one need to perform on daily basis especially and also occasionally like closing or festive time.
Work schedule: carry the stage wise or time allotment to each duty respectively.
Joining date: the very important information is date, time and venue of joining.

4 0

3 years ago

The present value of an annuity considers which of the following factors? I. the timing of each cash flow II. the amount of each

Nitella [24]

Answer:

All of them.

Explanation:

For considering the annuity formula we can determinate all the proposed factor:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C represent II the amount of each cash flow

r = represent the discopunt rate

while time or "n" represent the numebr of cashflow we have to calcualte the present value.

The timing refer wether the payment are made at the beginning or end of the period.

When made at the beginning it is an annuity-due

and the (1+r) factor multiplies the previous formula to represent the addtional period of capitalization each cashflow has or the one period less to discount for each cashflwo in cases of prresent value.

8 0

3 years ago

The law of large numbers says that when many people are insured, the probability distribution of the losses will assume a normal

Dahasolnce [82]

Answer:

allows accurate predictions.

Explanation:

The law of large numbers states that the larger the amount of policy holders, the probability distribution of the number of claims (losses for the insurance company) will be shaped like a normal distribution. This allows the companies to make more accurate predictions about the future number of claims.

In statistics, the law of large numbers states that as the sample size increases, the mean will be much closer to the real mean of the total population.

6 0

3 years ago

Tanner Service Company reported an annual sales revenue of $560,000 in 2019. During the year, accounts receivable decreased from

otez555 [7]

Answer:

$563,700

Explanation:

Calculation of cash is as seen below.

Sales revenue. $560,000

Add: Decrease in accounts receivable ($22,500 - $18,800) $3,700

Cash received from customers. $563,700.

Note: other information given in the question are not relevant for the computation of cash received from customers for the year.

Therefore, cash received from customers for the year is $563,700

4 0

3 years ago