Answer:
d. 8.18 million
MVA is $380 million
Explanation:
Net residual Income is the value of the firm. All the preferred and required / agreed return on any the funding availed is deducted from the net earning after profit to make the value for the firm. The income purely associated to the firm is considered as the value of the firm.
Earning Before Interest and tax = Net Sales - Operating costs = $80 million - $52 million = $28 million
Net Operating profit after tax = $28 x ( 1 - 40% ) = $16.8 million
Return on investor-supplied capital = $115 million x 7.5% = $8.625 million
Value created for the firm = Net operating profit after tax - Return on investor-supplied capital = $16.8 - $8.625 = $8.175 million = $8.18 million
MVA is the net of market capitalization and stockholders equity of the firm. It is the difference of market value and book value of equity of a firm.
MVA = ( Outstanding shares x Market value of shares ) - Book value od the equity = ( 20 million shares x $25 per share ) - $120 million = $500 million - $120 million = $380 million
Answer: b. people face trade-offs
Explanation:
From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.
We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.
Answer:
Raise taxes
Explanation:
This will help reduce the amount of money in circulation because during recession money loses its value due to large amount of money in circulation
True , True , True , True , True