Those who provide financial capital must make two major choices: how much money to set aside and how to allocate it among various financial investments.
What kinds of factors will shift the demand and supply of financial capital?
People must consider their future needs to determine how much savings they should set aside for anticipated or unforeseen circumstances. Savings will move their money to Investment B if Investment A becomes riskier or offers a lower return, which will cause the supply curve of financial capital for Investment A to move back to the left while moving Investment B's supply curve to the right. Those that ask for financial resources do so because they intend to repay it in the future. People might, for instance, take out a loan to buy a house, a car, or another type of long-term possession. To create a factory or finance a project that won't pay off for five, ten, or even more years of research and development, a corporation may look for financial investment.
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Answer:
the after-tax cost of debt is: 27,090
Explanation:
assuming the entire among of the consulting services is tax deductible
we can determinate the after-tax cost as:
expense x (1 - tax rate) =
43,000 x (1 - 0.37) = <em>27,090</em>
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<em>the rate of return of a potential investment is not relevant for this purpose as is paying right away and not giving time to invest in a project to pay the amount next year.</em>
It depends on what type of meeting it is tell me what type of meeting it is and then i might give you some things necessary :)
Answer:
business would probably have more future opportunities but honestly whichever one you think you might actually wanna do in the future
Answer:
The company’s net income is $404,316.
Explanation:
Ivanhoe Company
Income statement for the period ended March 31, 2017
$
Sales 1,700,000
Cost of goods sold <u> (813,400) </u>
Gross Income 886,600
Depreciation expense <u>(175,000)</u>
Operating Income 711,600
Interest expense <u>(89,575) </u>
Income before Tax 622,025
Tax rate 35% <u> (217,709) </u>
Net Income <u> 404,316 </u>
