1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Snezhnost [94]
3 years ago
14

Katlin Markets is debating between a levered and an unlevered capital structure. The all-equity capital structure would consist

of 75,000 shares of stock. The debt and equity option would consist of 40,000 shares of stock plus $320,000 of debt with an interest rate of 6.25 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.a.$46,333.33b.$44,140.71c.$42,208.15d.$49,666.67e.$42,857.14
Business
1 answer:
Goshia [24]3 years ago
8 0

Answer:

e. $42,857.14

Explanation:

The computation of the break-even level of earnings before interest and taxes between these two options is shown below:

(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares  

(EBIT) ÷ (75,000 shares) = (EBIT - $20,000) ÷$40,000

40,000 × EBIT = 75,000 × EBIT - $1,500,000,000

35,000 × EBIT = $1,500,000,000

After solving this,  

The EBIT would be $42,857.14

The interest expense

= $320,000 × 6.25%

= $20,000

You might be interested in
An anesthesiology group is under contract to staff a hospital’s anesthesiology service. It believes it can provide coverage by h
jok3333 [9.3K]

Answer:

D.  Perception

Explanation:

In the work environment different perceptions coexist within the same group. The problem arises when these perspectives collide. There is a material or quantifiable conflict in those cases in which a person decides that they want to follow different solutions or goals to the rest.

This is a conflict of perception where two different stakeholders experience difference in responsibilities because of their perception.

Hope this helps!

7 0
3 years ago
How much was nasa paid to launch west germany's spas-01 satellite in 1983?
tresset_1 [31]
Nasa was paid 13 million to launch west germany's space-01 satellite in 1983

4 0
4 years ago
Donna pays $5 for a sandwich and bag of chips. What function is money serving in this example?
Anna35 [415]
The money is serving as a medium of exchange. You are exchanging money, which represents the ability to purchase any good of equal value, for the sandwich and bag of chips. 
4 0
4 years ago
Imagine that an exchange student from China visits your class. While your teacher discusses how the United States has a limited
Marrrta [24]

The point best highlights about the US government limited power is that limited government protects individual freedoms. Thus the option (C) is correct.

<h3>What is Government?</h3>

Government refers to the group of individual governing the nation. The main role of the government is the protect of its territory from the outsiders. It functions in various sectors such as health, education, defense, infrastructure etc.

As per the above scenario, a Chinese students asks his teacher that why the American government has the limited power the best reason for the limited power is government protects the individual freedom by diving the power into many hands.

With the distribution of the power in the different branches has led to the enjoy the individual freedom. Thus the option (C) is correct.

Learn more about Government here:

brainly.com/question/4160287

#SPJ1

8 0
2 years ago
The two kinds of stock issued by
Ira Lisetskai [31]

Answer:

yes but to check you can look it up

4 0
3 years ago
Read 2 more answers
Other questions:
  • When Americans buy German-made cars, Americans are _____ these cars. a.)exporting b.)importing c.)taxing
    10·2 answers
  • Delar Co. completed its year-end physical count of inventory. The inventory was valued at first-in, first-out (FIFO) costs and t
    10·1 answer
  • Business law
    15·1 answer
  • It is now 10 years after you have graduated. You are advising a large company regarding its compensation and tax planning for it
    12·1 answer
  • If the Federal Reserve decreases the interest rate paid on reserves, banks will tend to hold ____ excess reserves, which will __
    5·1 answer
  • can someone check how many ti i k t o k followers i have alexaasalvatore if u actually searh it ill give brainiest
    14·1 answer
  • Determine proper classification (LO11-1) Analysis of an income statement, balance sheet, and additional information from the acc
    8·2 answers
  • Assume the following for the town of Boone: it has a total population of 40,000 people, of which 1,000 are under 16 years of age
    10·1 answer
  • On october 4, 2020, concord company had credit sales transactions of $3300 from merchandise having cost $2600. the entries to re
    11·1 answer
  • What do you think are some of the risks and challenges associated with performing so many hypothesis tests? what would you do to
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!