How many questions are on the ACT science test

Gulf Shores Inn is comparing two separate capital structures. The first structure consists of 300,000 shares of stock and no deb

tangare [24]

Answer:

The price per share of equity is $37.083

Explanation:

The first capital structure is purely equity based and Guld Shores will sell 300000 shares at price x to raise the needed capital.

The second structure is a mixed or leveraged structure where both debt and equity components are involved. The capital that needds to be raised remains constant.

Gulf has to give up 300000 - 252000 = 48000 shares and raise 1.78 million dollars from debt. We assumed that the amount that Gulf will raise is the ame from both th structures. Then 48000 shares at price x are equal to $1.78 million debt.

So, Price per share of equity is,

1,780,000 = 48000x

1780000 / 48000 = x

x or price per share = $37.083

6 0

3 years ago

Smooth Fusion Inc. is a software company that has built and acquired numerous assets over the years. According to the resource-b

djverab [1.8K]

Answer:

The expertise acquired by the employees in the company.

8 0

2 years ago

Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the

Tanya [424]

Answer: i - Socially optimal level of output

Explanation: At the point of intersection of the demand curve and the marginal cost, any quantity below this quantity, the marginal benefit to consumers overshadows the marginal cost to the producers.

4 0

2 years ago

Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When custo

Alik [6]

Answer:

1. The obligation to transfer the vacuum cleaner in lieu of the price.

2. To honour one year warranty for any product defect that is part of the purchase contract and an inherent obligation.

Explanation:

The contract for purchase of a vacuum cleaner has two performance obligations;

1. The obligation to transfer the vacuum cleaner in lieu of the price.

2. To honour one year warranty for any product defect that is part of the purchase contract and an inherent obligation.

it may be noted that the extended warranty is a separate performance obligation as it can be purchased at the same time of original purchase or later and separate consideration is payable for that and there is no direct co-relation of the extended warranty obligation with the initial purchase.

5 0

3 years ago

Volbeat Corp. shows the following information on its 2015 income statement: sales = $255,000; costs = $156,000; other expenses =

PIT_PIT [208]

Answer:

A. $69,855

B. $19,600

C. $5,700

D. $28,000

Explanation:

A. Calculation for the operating cash flow

Using this formula

Operating cash flow = EBIT + Depreciation

First step is to find the EBIT using this formula

EBIT = Sales – Cost – Other expenses - Depreciation

Let plug in the formula

EBIT = 255,000 -156,000 – 7,900 -15,600

EBIT = 75,500

Now let calculate the Operating cash flow using this formula

Operating cash flow = EBIT + Depreciation

Let plug in the formula

Operating cash flow = 75,500 + 15,600 -21,245

Operating cash flow =$69,855

B. Calculation for the 2015 cash flow to creditors

Using this formula

Cash flow to creditor = Redeemed long term debt + Interest

Let plug in the formula

Cash flow to creditor= 4,800 + 14,800

Cash flow to creditor= $19,600

C. Calculation for 2015 cash flow to stockholders

Using this formula

Cash flow to stockholders = Dividends – Issued equity

Let plug in the formula

Cash flow to stockholders= 12,000 – 6,300

Cash flow to stockholders=$5,700

D.If net fixed assets increased by the amount of $28,000 the addition to Net Working Capital will be the same amount of $28,000 reason been NET WORKING Capital has the following :Current assets – Current liability + Fixed asset which are all part of current asset.

7 0

3 years ago