Answer:
$150,350
Explanation:
The computation of the cash collected in December is shown below:
Particulars Sept Oct Nov Dec
Sales $165,000 $156,000 $140,000 $177,000
Given percentage 30% 55% 15%
December collection amount $46,800 $77,000 $26,550
Total December collection $150,350
Answer:
The answer is 8 years
Explanation:
FV= PV(1+r)^n
Where
PV= let's assume PV is $100
FV = Since FV will be doubled, the we have $200($100 x 2)
n= ?
r= 9percent
Let us use the rule of 72 which states that an investment will double when:
Annual Investment Rate x Number of Years = 72.
Number of years = 72/9
= 8 years
The investment is doubled in 8 years at the rate of 9percent
Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets
Explanation:
US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.
Answer:
The correct answer is letter "B": They should be ignored in a bidding war.
Explanation:
Negotiations are vital in every aspect. They allow individuals to deal with situations in which parties need from each other but either of them is willing to take the first step to come to an agreement. Negotiations can also be useful out of problematic situations when parties voluntarily want to make a pact but the initial terms are unclear.
Placing limits for negotiations is important as well. Limits will prevent parties from giving to much of themselves or avoiding the other party to take advantage of a given situation. Thus, in front of war, limits must be placed in a negotiation.
Answer:
The solution as per the given problem is provided below throughout the explanation portion below.
Explanation:
The given values are:
Debt issued,
= 120
Pretax earnings,
= 80
Tax,
= 35%
All equity firm,
= $320
Number of common stock,
= 50
(a)
Balance sheet before the debt issue's announcement will be:
<u>Assets </u><u> 320</u>
<u>Debt </u><u> 0</u>
<u>Equity </u><u> 320</u>
then,
The total will be "320".
(b)
The per share price will be:
= ![\frac{Equity}{Number \ of \ common \ stock}](https://tex.z-dn.net/?f=%5Cfrac%7BEquity%7D%7BNumber%20%5C%20of%20%5C%20common%20%5C%20stock%7D)
= ![\frac{320}{50}](https://tex.z-dn.net/?f=%5Cfrac%7B320%7D%7B50%7D)
= ![6.40](https://tex.z-dn.net/?f=6.40)
or,
After tax, the net income will be:
= ![EBIT(1-t)](https://tex.z-dn.net/?f=EBIT%281-t%29)
= ![80(1-0.35)](https://tex.z-dn.net/?f=80%281-0.35%29)
= ![80\times 0.65](https://tex.z-dn.net/?f=80%5Ctimes%200.65)
= ![52](https://tex.z-dn.net/?f=52)
(c)
The return on equity will be:
= ![\frac{Net \ income \ after \ taxes}{Value \ of \ equity}](https://tex.z-dn.net/?f=%5Cfrac%7BNet%20%5C%20income%20%5C%20after%20%5C%20taxes%7D%7BValue%20%5C%20of%20%5C%20equity%7D)
= ![\frac{52}{320}](https://tex.z-dn.net/?f=%5Cfrac%7B52%7D%7B320%7D)
= ![0.1625](https://tex.z-dn.net/?f=0.1625)
or,
=
(%)