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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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The correct answer would be B, Client Information Sheet.

Explanation:

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3 years ago
Your friends own a lawn care business. They own their own equipment and trailers to transport it. Eventually they buy out anothe
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Horizontal consolidation is the answer
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3 years ago
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Fogelberg Company purchased equipment for $30,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charg
Y_Kistochka [10]

Answer:

Cost of the equipment  = $32350

Explanation:

given data

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installation costs  = $450

solution

we get here Cost of the equipment that is express as

Cost of the equipment  = Purchase cost + Sales tax paid + Freight + Installation cost    .........................1

put here value and we will get

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4 0
3 years ago
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2 years ago
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The domestic variety is cheaper because there is no import duties or no charges imposed on it because of the import from other countries.

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A country produces a lot of goods and services in it's own economy using the resources which are present in it's own country. But the goods and the services that are not available in the country but are demanded by the citizens of the country are imported from other countries.

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