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solmaris [256]
3 years ago
12

Last year, Candle Corp had $200,000 of assets, $300,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 40%

. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $30,000. Assets, sales, and the debt ratio would not be affected. By how much would the cost reduction improve the ROE?
Business
1 answer:
Arisa [49]3 years ago
5 0

Answer: 342,000

Explanation:

200,000 + 300,000 + 20,000 = 520,000

520,000 * 40% = 208,000

520,000 - 208,000 = 312,000

312,000 + 30,000 = 342,000

Therefor your answer is 342,000

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Financial incentives given by the government to corporations, individuals, or other governments for the purpose of encouraging c
Dmitriy789 [7]

Answer:

It os D, subsidies. this is correct.

7 0
2 years ago
Hunter's Hut is considering a project that will require additional inventory of $48,000 and will increase accounts payable by $2
slamgirl [31]

Answer:

the project cash flow is $92,880

Explanation:

The computation of the project cash flow for the change in net working capital in the year 1 is shown below:

Working capital needed for the year 1 $55,000 ($550,000 × 10%)

Add: Additional inventory $48,000

Add: Increase in account receivable $11,880 ($297,000 × 4%)

Less: Increase in accounts payable $22,000

Project cash flow $92,880

Hence, the project cash flow is $92,880

3 0
2 years ago
Which of the following is the location where notes can be added?
Reptile [31]
No enough information added
5 0
3 years ago
At the end of each year, Carl and Linda Munson will deposit $2,100 into a 401k retirement account. Find the amount they will hav
gulaghasi [49]

Answer:

$14,091                

Explanation:

The compounding formula would be used here, which is as under:

Future Value = P * [1 -   (1+i)^-n]  / i

Here

P is the periodic payments of $2,100

n is the number of periodic payments made which is once in a year and total of 10 in 10 years. So n = 10 number of periodic payments.

r is the annual interest rate which is 8%

By putting this value in the equation, we have:

Future Value = $2,100 * [1   -  (1 + 8%)^-10]  / 8%

Future Value = $14,091

3 0
3 years ago
The current price of the futures contract is $30. A six-month call option on the futures contract with a strike price of $30 is
babymother [125]

Answer:

Put Price = $4

Explanation:

We are applying Put Call Parity Theorem. Future Price + Put Price = Call Price + Strike Price

$30 + Put Price = $4 + $30

Put Price = $4 + $30 - $30

Put Price = $4

Thus, the price of six month put option = $4

7 0
2 years ago
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