1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
A disadvantage of corporations is that shareholders have to pay on profits.
olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0
2 years ago
Sheffield Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Bud
FinnZ [79.3K]

Answer:

How much is the total budgeted variable selling and administrative expenses for October?

  • $17,150

Explanation:

                                  Variable Cost          Fixed Cost        Total costs

                                  <u>   Per Unit        </u>        <u>                    </u>       <u>for 7,000 units</u>

Sales commissions        $0.60                     $7,000              $11,200

Shipping                          $1.20                                                $8,400

Advertising                     $0.30                                                $2,100

Executive salaries                                       $34,000           $34,000

Depreciation                                                  $8,000             $8,000

<u>Other                              $0.35                    $28,000           $30,450</u>

TOTAL                            $2.45                    $77,000            $94,150

How much is the total budgeted variable selling and administrative expenses for October?

total variable costs per unit = $2.45 x 7,000 units = $17,150

6 0
3 years ago
A lender determines that a homebuyer can afford to borrow $220,000 on a mortgage loan. The lender requires an 85% loan-to-value
Dmitry [639]

Answer:

D: $259,000

Explanation:

The computation of the paying amount which borrower can pay for a property is shown below:

= Mortgage loan amount for borrow ÷  loan-to-value ratio

= $220,000 ÷ 85%

= $258,823.53

= $259,000 round off

We simply divide the mortgage loan by the loan to value ratio so that paying amount could arrive which borrower can pay for a property.

7 0
3 years ago
If you expect the price of gold to increase in the near​ future, your demand for gold today will increase.A. TrueB. False
9966 [12]

Answer:

A. True

Explanation:

Gold is a valuable commodity acquired for various reasons.  In economists, gold is as a store of value and an investment tool. Gold is traded in the financial markets like other valuable metals such as silver and copper.

If investors anticipate the price of gold to rise in the near future, demand for gold will increase. Gold will be bought as an investment asset for speculative purposes. Traders will buy gold and the current prices and wait to sell when the prices rise. Investors take advantage of price movement to make profits.

5 0
3 years ago
Feelings of personal resposnibility for a project are most likley to lead to
damaskus [11]
It most likely lead to prior hypothesis, reasoning by analogy, representative, ivory tower planning , and escalating commitment. :)
6 0
3 years ago
Other questions:
  • You have been working as an assistant manager in Mimi and Jasmine's (M&amp;J) warehouse. M&amp;J is an innovative cosmetics comp
    6·1 answer
  • ​A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return i
    6·1 answer
  • Philosophers draw a distinction between ___________________, which describe the world as it is, and normative statements, which
    6·1 answer
  • Steve Jobs was a strong, charismatic leader who co-founded Apple and is credited with much of the success of the company. Some b
    11·1 answer
  • Which type of credit is most likely to be unsecured?
    9·2 answers
  • Is an internship required to be a dentist?
    5·1 answer
  • Interim financial statements: Multiple Choice Are required by the Congress. Are necessary to achieve full disclosure about a bus
    13·1 answer
  • You have 40 years left until retirement and want to retire with $5 million. Your salary is paid annually, and you will receive $
    5·1 answer
  • ________ models assist top-level managers in long-range planning, such as stating company objectives or planning plant locations
    7·1 answer
  • A city issues five-year bonds payable to finance construction of a new school. what recording should be made?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!