Answer:
Explanation:
Let x be the amount loaned at 7% and ($19,000 - x) be the amount loaned at 15%
Given:
Interest incurred at 7%, I1 + Interest incurred at 15%, I2 = $2000
Interest, I = amount × rate
I1 = 7/100 × x
I2 = 15/100 × ($19,000 - x)
From the above expressions,
(0.07)x + (0.15) × ($19,000 - x) = $2,000
Solving for x,
0.07x + 2850 - 0.15x = 2000
Collecting like terms,
0.08x = 850
x = $10625
The amount loaned at 7% interest is
$10625
The amount loaned at 15% interest is ($19000 - $10625)
= $8375
Missing information:
<u>Balance sheet
</u>
Current assets $3,300 Current liabilities $2,200
Fixed assets $10,200 Long-term debt $3,750
Equity $7,550
Total $13,500 Total $13,500
<u>Income statement</u>
Sales $6,600
Costs $5,250
Taxable income $1,350
Taxes (34%) $459
Net income $891
Answer:
$1,350.60
Explanation:
external financing needed = [(assets / sales) x ($ Δ sales)] - [(current liabilities / sales) x ($ Δ sales)] - [profit margin x forecasted sales x (1 - dividend payout ratio)]
EFN = [($13,500 / $6,600) x $1,188] - [($2,200 / $6,600) x $1,188] - [(0.135 x $7,788 x (1 - 0.35)]
EFN = $2,430 - $396 - $683.40 = $1,350.60
External financing refers to the amount of money that a business must either borrow or raise capital in order to keep operating as they have been doing so.
Answer:
c. cash, checking account balances, and travelers' checks.
Explanation:
Money Supply is the concept that means the amount of the liquid financial products and total currency in the market or economy. It is regulated the macro-economically by the monetary policy. So, there are types of measures of money supply or stock:
-M0: narrowly, it means the hard currency in circulation
-MB: it equals M0+ the hard currency which are not technically in circulation and in bank reserves.
-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.
-M2: covers M1 and saving accounts and CDs.
-M3: it surrounds the larger deposits.
-MZM: finally, this indicates the money market deposits.
That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.
Answer:
Option (C) is correct.
Explanation:
Manufacturing costs:
= Direct Materials + Direct Labor + Variable overhead
= $160,000 + $80,000 + (150,000 × 75%)
= $160,000 + $80,000 + $112,500
= $352,500
Operating income:
= Sales (1,100 units) - Manufacturing costs
= $370,000 - $352,500
= $17,500
Therefore, if Model A02777 is dropped from the product line, operating income will decrease by $17,500.
Answer:
a)
Pre-tax Cost Of Debt = 7.64%
b)
Tax Rate = 40%
Post Tax cost of debt = 7.33% * (1 - 40%) = 4.58%
So Post Tax cost of Debt = 4.58%
Explanation:
Bond Par Value = 12,900,000
Bond Market Price 93% of face value = 11,997,000
Years To maturity = 5.00
Annual Interest 5.9% = 761,100
Formula = [Annual Interest + (Par Value-Market Value) / Years to Maturity] / [(Par value+Market Price*2)/3]
Year To Maturity = [761100 + (12900000 - 11997000) / 5] / (12900000 + 2*11997000) / 3
Year to maturity = 7.33%
