ROI is the answer to this question. ROI or Return of
Investment is when the capital is now gained back and the business computes the
amount of profit during the time the investment was returned. Return of
investment is computed by dividing the benefit of investment over the cost of investment.
Answer:
10.38%
Explanation:
From the question above a bank offers to lend an amount of $10,000 for a period of 1 year
The bank expects an interest of $250 to be paid every 4 months
= $250×4
= $1,000
Total amount of interest= $1,000
The first step is to calculate the nominal interest
= (1000/10,000)×100
= 0.1×100
= 10%
Therefore, the effective annual rate on the loan can be calculated as follows
= (1+r/m)^m-1
r = 10% , m = 4
= [1+(10/100)/4]^-1
=[ (1+0.1/4)^4]-1
= (1+0.025^4)-1
= (1.025^4)-1
= 1.1038-1
= 0.1038×100
= 10.38%
Hence the effective annual rate in the loan is 10.38%
Answer:
$117,600
Explanation:
Given that the company has Cash sales that are normally 60% of total sales and Of the credit sales, 25% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale
In June, total sales $370,000
Amount that would not have been collected from this sale at the end of July
= 40% * 15% * $370,000
= $22,200
In July, total sales is $318,000,
Amount that would not have been collected from this sale at the end of July
= 40% *75% * $318,000
= $95,400
Hence the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31
= $22,200 + $95,400
= $117,600
The possible management structures and key terms of any operating agreement that must be considered to form an LLC are related to responsibility sharing, as an LLC is a type of entity owned by its partners.
Some features of the LLC are:
- Less formality.
- Tax savings.
- Flexible management.
- Simple organizational structure.
Therefore, the LLC is a single hybrid entity, more streamlined than a corporation, with the advantage that this proprietorship has limited liability protection.
Management is also more flexible, with decision-making being possible to be shared among its members, regardless of hierarchy.
It is also important to highlight the taxes, as in an LLC the taxation is simpler, with the losses and gains being reported in the tax returns, which helps to offset the income.
So this is a more streamlined and protected form of partnership that can be managed by a group of members more securely than a corporation.
It has less formal requirements to exist, and in case of bankruptcy or debt, there is greater protection for each member's personal property, as in an LLC the debts and obligations cannot be greater than the initial capital invested in the company.
Learn more here:
brainly.com/question/18567855
Answer and Explanation:
The computation is shown below:
a. The price per share under MM proposition is
= Debt ÷ Difference in Number of shares
= $1,330,000 ÷ (155,000 - 105,000)
= $26.60
b. The value of the firm under each plans is
For All equity plan
= Share price × Number of shares
= $26.6 × 155,000 shares
= $4,123,000
For Levered plan
= All equity plan value + Debt × Tax rate
= $4,123,000 + $1,330,000 × 0%
= $4,123,000
