Answer: No loss, no gain
Explanation:
When an employer changes group plan to another insurer, all employees under the previous coverage would be eligible to gain under the new plan without any delay for probation.
Answer:
B. EBIT times one minus the tax rate plus depreciation
Explanation:
The formula to calculate the operating cash flow is given below:
Operating cash flow = EBIT + Depreciation expenses - Income tax expense
The EBIT stands for earning before interest and taxes
And, EBIT - income tax expense = Earning after taxes (EAT)
The operating cash flow is the amount which is left after paying all the expenses related to cash
Answer:
e. Increase by $4,500.
Explanation:
<u>Analysis of the effect of discontinuing Product Line C</u>
Income :
Rent Income $6,000
Savings : Fixed Costs - Avoidable $3,000
Total Income $9,000
Costs :
Opportunity Cost - Contribution Margin $4,500
Total Costs $4,500
Net Income (Loss) $4,500
therefore,
By discontinuing Product Line C, operating income for the company will likely Increase by $4,500
Answer:
$23.25
Explanation:
the maximum that you would be willing to pay for a stock of Universal today can be determined using the multistage dividend discount model
The first step is to find the present value of the dividends over the next four years :
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $8
Cash flow in year 2 = $4
Cash flow in year 3 = $2
Cash flow in year 4 = $2
I = 15%
Present value = $12.44
Next we would find the present value of the perpetual growth of dividend
($2 x 1.04 ) / 0.15 - 0.04 = 18.91
the present value of this amount = $18.91 / = $10.81
Maximum value = $12.44 + $10.81 = $23.25
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute