Answer:
The effect on net operating income would be an increase of $137,900
Explanation:
Giving the following information:
Selling price $85
Variable expenses per unit $ 35
If Price Paper spends an additional $12,100 on advertising, sales volume should increase by 3,000 units.
To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:
Effect on income= 3,000*(85 - 35) - 12,100= $137,900
Answer:
$58,002.60
Explanation:
First, it is clear to include the $21,000 as part of the value of the equipment.
Now, the $9,000 annual payment after every year for six years need to be presented in its present value, meaning what is the value of those future amounts of $9,000 on June 30, 2018.
To calculate the present value of annuity (annuity means constant and equal payments) for those 6 payments of $9,000, we would need the Present Value Factor which is supplied from the Present Value Table.
Looking at 12% for 6 periods ("six annual installments") on the table, it gives the PV factor of 4.1114.
Just multiply $9,000 by 4.1114 and we get 37,002.60
Finally add the downpayment of $21,000 with the present value $37,002.60 and we would get the total value of the equipment of 58,002.60
Answer:
price earning ratio = 2
Explanation:
given data
Book value = $40 per share
Par value = $12 per share
Dividends = $5 per share
Dividend payout ratio = 20 %
Dividend yield ratio = 10 %
solution
first we get here market price per share by dividend yield ratio that is express as
dividend yield ratio = Dividends per share ÷ market price per share ........................1
put here value we get
market price per share = 
market price per share = $50
and
now we get earning per share by dividend payout ratio that is express as
dividend payout ratio = dividend per share ÷ earning per share .................................2
put here value we get
earning per share = 
earning per share = $25
so now we get here price earning ratio that is
price earning ratio = market price per share ÷ earning per share ..........................3
put here value we get
price earning ratio = 
price earning ratio = 2
A prospectus is given to potential investors.
Every individual or business wants to make profit this is done by providing goods and services that satisfy people's needs and wants.
<h3>What is a business?</h3>
A business is an organization that aims at making a profit by providing goods and services that are desired by individuals also known as customers.
Business meets a need and gets profit in return.
Therefore, A Business is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.
learn more on business here
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