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konstantin123 [22]
3 years ago
6

Ink Inc. has a capital structure consisting of 25 percent debt and 75 percent common equity financing. The company has $800 mill

ion in net income and plans to pay out 40 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock?
Business
1 answer:
Margarita [4]3 years ago
5 0

Answer:

$640 million

Explanation:

The computation of maximum amount of new financing is shown below:-

New financing from equity = $800 million × (1 - 40%)

= $480 million

New financing from debt = $480 million ÷ 75% × 25%

= $160 million

Now the maximum amount of new financing is

= $480 million + $160 million

= $640 million

Hence, the maximum amount of new financing is $640 million

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Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10
Zolol [24]

Answer:

Michael does not experience inflation because he only buys Tennis rackets

Explanation:

Inflation is defined as increases in price per unit price.

It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.

One of the direct impact of inflation is rise in price of goods and services.

As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.

6 0
3 years ago
Which question is an illustration of a macroeconomic question? rev: 05_10_2018 Multiple Choice Is a corporation unresponsive to
Tasya [4]

Answer:

How will the government’s budget deficit be affected by public infrastructure projects?

Explanation:

Macroeconomics is concerned with the general behavior and changes in the economy as a whole. Macroeconomics studies parameters that affect the entire economy, such as inflation, unemployment, national income, gross domestic product (GDP), and general price levels.  It contrasts microeconomics, which studies the choices and behavior of individual households and industries.

A government's budget is for the entire economy.  A deficit that affects public infrastructure projects will impact the country's economic development programs. Government spending forms part of fiscal policies that influence economic development in a country.

8 0
3 years ago
Calloway Company recorded a right-of-use asset of $790,000 in a 10-year finance lease. The interest rate charged by the lessor w
enot [183]

Answer:

$632,000

Explanation:

The computation of the amount of balance in the right of use asset after two years is shown below:

Balance in right of use asset after 2 years is

= Recorded value - ((Recorded value × rate of interest) × number of years)

= $790,000 - (($790,000 × 10%) × 2)

= $790,000 - ($79,000 × 2)

= $790,000 - $158,000

= $632,000

hence, the balance is $632,000

5 0
3 years ago
The following situations relate to the demand curve for iPhones [normal good]. For each situation, state whether it is a change
julia-pushkina [17]

An increase in the income of 18-25 year olds would lead to an increase in the demand for iPhones.

The announcement made by Apple, would lead to a decrease in the demand for iPhone.

An increase in the price of iPhones would lead to a decrease in the quantity demanded of iPhones.

A decrease in the price of android phones would lead to a decrease in the demand for iPhone.

A demand curve is a curve that shows the relationship between the price of a good and the quantity demanded. A normal demand curve is downward sloping. This means that as prices increases, the quantity demanded would decrease.

Only a change in the price of a good leads to a change in the quantity demanded. This would mean a movement along the demand curve for the good.  Other factors leads to a change in demand. This is shown by either an outward shift or inward shift of the demand curve. When demand increases, there is an outward shift. When demand decreases, there is an inward shift of the demand curve.

An increase in income would lead to an increase in demand for iPhone because iPhone is a normal good. This would lead to an outward shift of the demand curve.

As a result of the announcement, demand would decrease. This is because human beings would like to buy goods cheaper, so they would defer purchase to next month. This would lead to an inward shift of the demand curve.

An increase in the price of iPhones would lead to a decrease in the quantity demanded of iPhones.

If there is a decrease in the price of androids, there would be an increase in the demand for androids and a decrease in the demand for iPhone. This would lead to an inward shift of the demand curve.

To learn more, please check: brainly.com/question/16170188?referrer=searchResults

8 0
2 years ago
The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $81,145. During November, the total cash
m_a_m_a [10]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

                              Bank Reconciliation Statement

Particular                                                  Amount ($)

According to the bank statement cash balance 112,675

Add - 30,November deposits, not recorded by bank 12,200

Less - Charging check bank error ($7,250 - $2,750) -4,500

Less - outstanding checks -$41,840

Total Balance 78,535

According to the company’s record cash balance 66,935

Add - Including $385 interest note collected by bank  7,385

Add - Error in recording check($7,600-$760) 6,840

Less - bank service charge -125

Less - Because of insufficient funds check returned -2,500

Total Balance 78,535

According to the Company’s Record Cash Balance

= Company’s Indicated November Balance + Total Cash Deposits - Written Totaled  

= $81,145 + $293,150 - $307,360

= $66,935

Journal Entry

On Nov 30  

Cash A/c        Dr.$14,225

 To Interest receivables A/c   $7,000

 To Accounts payable A/c   $6,840

 To Interest revenue A/c   $385

(Being receipts of cash is recorded)

On Nov 30

Accounts receivables A/c      Dr. $2,500

Miscellaneous expense A/c    Dr. $125  

 To Cash A/c     $2,625  

(Being cash paid is recorded)

3). According to the analysis,  the cash should be reported $78,535 if balance sheet is prepared on 30 November,2019.  

5 0
3 years ago
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