Answer:
A. 8%
Explanation:
Profit margin = (Operating income / Revenue)
Profit margin = ($80,000 / $1,000,000)
Profit margin = 0.08
Profit margin = 8%
Answer: Competitive aggression is exploiting a distinctive competence or improving internal efficiency for competitive advantage. Your answer is D.
Answer:
d.$38,448
Explanation:
The computation of the expected change in net income is shown below:
The net purchase for one day = $11,760
For 20 days excluding discount period i.e 10 days , it would be
= $11,760 × 20 days
= $235,200
The interest would be
= $235,200 × 10%
= $23,520
Now the gross purchase is
= (Net purchase × total number of days in a year) ÷ (1 - discount rate)
= ($11,760 × 365 days) ÷ (1 - 0.02)
= $4,292,400 ÷ 0.98
= $4,380,000
The discount is
= $4,380,000 × 0.02
= $87,600
After tax rate, the change in net income would be
= ($87,600 - $23,520) × (1 - tax rate)
= $64,080 × 0.60
= $38,448
The answer to the question above is "evaluation of alternatives" which is the step when a consumer arms with information and narrows down his/her choices by comparing the pros and cons of each remaining option. There is several steps of consumers decision making process. This step is the third step in the process.
Answer:
$22,592,593
Explanation:
For the computation of maximum initial cost first we need to follow some steps which are shown below:-
Let equity be 1 so debt = 1 × 0.80
= 0.80
weight of debt = 0.80 ÷ 1.8
= 0.44444
weight of equity = 1 ÷ 1.8
= 0.55556
Now
Cost of capital = (After tax cost of debt × Weight of debt) + (Cost of equity × Weight of equity)
= (5.1 × 0.44444) + (12.3 × 0.55556)
= 2.266644 + 6.833388
= 9.10 %
And,
Adjusted cost of capital is
= 9.1 + 1
= 10.1%
Maximum amount willing to pay = CF1 ÷ (Adjusted cost of capital -G)
= $1,830,000 ÷ (0.101 - 0.02)
= $1,830,000 ÷ 0.081
= $22,592,593
