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Charra [1.4K]
3 years ago
10

Galaxy Products is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P

lan I, Galaxy would have 245000 shares of stock outstanding. Under Plan II, there would be 237014 shares of stock outstanding and $310000 in debt outstanding. The interest rate on the debt is 9.9 percent and there are no taxes. What is the breakeven EBIT? g
Business
1 answer:
ivann1987 [24]3 years ago
4 0

Answer:

the breakeven EBIT for Galaxy Products is $767,250

Explanation:

Consider the following calculations and formulas of EBIT

EBIT/245,000 = [EBIT- 9.9%* 310,000]/237,014

0.96 EBIT = EBIT- 30690

0.04 EBIT = 30,690

Break Even EBIT = $767,250

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swat32
1. Piecework
2. Salary
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7 0
2 years ago
CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload
Mila [183]

Answer:

C) tender.

Explanation:

In contract law, a tender offer to perform is conditioned to the moment when the other party is willing and ready to perform as well. In this case, CrossCountry signed a contract, but the contract will be valid when the other party (Discount Outlet Stores) needs their services. If the other party does not require their services, CrossCountry is not able to perform nor demand performance.

6 0
2 years ago
H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory informatio
irinina [24]

Answer:

The calculation is shown below:

Explanation:

According to the scenario, the computation of the following data can be done as follows:

Total Cost = Quantity × Unit Cost

Total NRV = Net Realizable Value × Quantity

So, by putting the value in the formula, we get,

Item       Quantity     Total Cost        Total NRV    Lower of cost or NRV

A             59   $1,416.00         $1,239.00         $1,239.00

B             89   $3,471.00         $4,361.00         $3,471.00

C             19   $1,083.00        $1,159.00         $1,083.00

D             79   $2,686.00        $3,081.00         $2,686.00

E             359   $6,821.00         $5,026.00              $5,026.00

Total                   $15,477.00        $14,866.00         $13,505.00

6 0
2 years ago
A property title search firm is contemplating using online software to increase the productivity of the researcher performing th
Stella [2.4K]

Answer:

PRESENT= $5.21

COMPANY – A = $6.72

COMPANY – B= $6.64

Explanation:

Calculation for the higher productivity in terms of revenue per dollar of input

PRESENT

Average time =59 minutes

Cost=59 minutes x$1.30 per minute

Cost = $76.7

Productivity (per $input)=$400/$76.7

Productivity (per $input)= $5.21

COMPANY – A

Average time= (59 minutes-16 minutes)

Average time=43 minutes

Cost= 43 minutes x $1.30 per minute + $3.60

Cost=$55. 9+$3.60

= $59.50

Productivity (per $input)=$400/$59.50

Productivity (per $input) = $6.72

COMPANY – B

Average time= (59 minutes - 17 minutes)

Average time=42 minutes

Cost= 42 minutes x $1.30 per minute + $5.60

Cost=$54. 6+$5.60

= $60.20

Productivity (per $input)=$400/$60.20

Productivity (per $input) = $6.64

Summary

PRESENT:Productivity (per $input)= $5.21

COMPANY – A:Productivity (per $input) = $6.72

COMPANY – B:Productivity (per $input) = $6.64

Therefore COMPANY – A with the amount of $6.72 would have the higher productivity in terms of revenue per dollar of input because it has the highest amount.

4 0
3 years ago
what is the term for a group of project activities that are assigned to a single organizational unit?
ElenaW [278]
Product-service bundling is adding Value-added services to a firm's product offerings to create more value for the customer.
5 0
2 years ago
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