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Naddik [55]
3 years ago
9

Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed

with 30 percent debt, and it has no preferred stock outstanding. What is the retained earnings break point for Omega Inc.?
Business
1 answer:
REY [17]3 years ago
3 0

Answer: $700,000

Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.

Retained earnings break even can be computed as follows :-

Break\:even=\frac{retained\:earnings}{equity\:ratio}

where,

retained earnings = net income (1- payout ratio)

                              = $525,000 (1 - 60%)

                              =  $210,000

therefore,

Break\:even=\frac{210,000}{0.3}

=$700,000

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Your uncle is considering investing in a new company that will produce high quality stereo speakers. The sales price would be se
earnstyle [38]

Answer:

29,867 units

Explanation:

Variable cost per unit (VC) = $75.00

Sales price (P) = 1.50 * VC = $112.50

Fixed costs (FC) = $1,120,000

Units sold (n) = ?

EBIT is given by:

EBIT = P*n - VC*n -FC

Therefore, the number of units sold required to break even is:

0 = 112.50*n - 75.00*n -1,120,000\\n=\frac{1,120,000}{37.5} \\n=29,866.7

Round up the value obtained to the next whole unit and the sales volume needed is 29,867 units.

6 0
3 years ago
Read 2 more answers
Network Analytics Inc. (NAI) recently made a sale to a foreign trading partner, but the customer does not need to make a payment
emmainna [20.7K]

Answer:

The question is missing the options which can be found in the attached.

The correct option is banker's acceptance

Explanation:

Banker's acceptance is a guarantee by a bank to the exporting party to pay a sum of money at specific date.

In international business, exporters would require additional security against their receivable usually request for a banker's acceptance also known as bill of exchange.

The bank pays the exporter a discounted amount as agreed then chase the importer for the full value of the transaction.The difference between the discounted amount paid by the bank and the full value recoverable from the importer is the bank's margin.

4 0
3 years ago
Marketers who want to assess what their customers think about their goods and services can collect data from blogs, social media
Andre45 [30]

Answer:

The answer is B. Sentiment analysis.

Explanation:

There is a growing need for marketers to determine the impact of the products and services on customers especially on a social perspective. With the existence of social network, this has become possible by carrying out sentiment analysis. This implies that the possibility for marketers to assess the social opinion, either positive or negative, of goods and services through the identification, analysis, interpretation of texts, surveys, social media sites is done through sentiment analysis. For example, skimming and scanning through reviews to identify expressed or text emotions such as joy, hate ets is a form of sentiment anlaysis.

5 0
3 years ago
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Sydney has worked for WillCo for the last 20 years. She just had her 60th birthday and is thinking about retirement. WillCo spon
Wittaler [7]

Answer: c. Sydney can diversify 50% of her WillCo stock.

Explanation:

Employee stock ownership plan (ESOP) is simply referred to as an employee benefit where the employees of a particular company are given ownership interest as long as some certain criteria are met.

Once the workers become qualified participants, they can diversify certain percentage of their stocks. From the 1st-5th year, a qualified participant is allowed to diversify about 25% of his or her stock account and about 50% in the 6th year.

Based on the explanation, since Sydney has worked for WillCo for the last 20 years, Sydney can diversify 50% of her WillCo stock.

5 0
3 years ago
Which of the following is a major difference between a budget constraint and production possibilities frontier?
horrorfan [7]

Answer:

c

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

So, the PPF exhibits diminishing return. The slope of the PPF is different at different points. this makes the PPF a curve

the budget constraint is a straight line that shows the various combinations of goods a consumer can consume given her income. the budget constraint is a straight line because the slope is constant at each point on the curve

Also, the slope of the budget constraint is the relative prices of the two goods

8 0
3 years ago
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