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bulgar [2K]
3 years ago
15

A firm'sprofit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million. How mu

ch did the firm pay in taxes
Business
1 answer:
nordsb [41]3 years ago
5 0

Answer:

The firm paid taxes of $0.5 million

Explanation:

Profit margin is the percentage of net income to its sales. It is calculated as follow:

Profit Margin =  ( Net profit /  Sales ) x 100

20% = (Net profit / 5 million) x 100

(20/100) x 5 million = Net profit

Net profit = 1 million

EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.

net income is calculates from EBIT as follow

Net Income = EBIT - Interest expense - Tax

1 = 1.5 - $0 - Tax (ignoring the effect of financing)

Tax = $1.5 - $1

Tax = $0.5 million

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Assuming P≥0, suppose that a population develops according to the logistic equation ????P/????????=0.07P−0.00014P2 where ???? is
Natasha2012 [34]

Answer:

A complete description of the problem and solutions to each point are given below.

Explanation:

The Logistic Growth model of a population is defined as follows:

                                   dP/dt = kP (1 - P/M) (1)

Where:

dP/dt is the population growth rate.

k is the maximal individual growth rate for a given population

P is the number of individual in the population

M= carrying capacity of the population.

In the problem this first order derivative ecuation is given by

                               dP/dt= 0,07P - 0,00014P² (2)

So, we can factorize ecuation (1) and compare it with (2) to find the carryng capacity and k value (questions 1 and 2).

                                        kP (1 - P/M) = 0,07P - 0,00014P²

                                        kP - (k/M)P² = 0,07P - 0,00014P²

Here kP = 0,07P ⇒ k = 0,07 (answer to question 2)

Then, (k/M)P² = 0,00014P²⇒ (k/M) = 0,00014 and given that k= 0,07

⇒ 0,07/M = 0,00014 ⇒ M = 0,07/0,00014 ⇒ M=500 (answer to question 1)

Finally to find for which values of P is the population increasing/decreasing, we have to find the values at which dP/dt is zero. Analyzing the equation as a quadratic function (applying Baskara´s equation) we find that the values at which dP/dt is zero are P= 0 and P = -1.

x = [-0,07 ± √(0,07²)]/ 0,14 ⇒ x=  [-0,07 ± 0,07)]/ 0,14 ⇒ x = 0 and x= -1.

Then the vertex here is P = -0,5.

Now we can state that for P greater than - 0,5 the population is decreasimg (question 4), while for values from -∞ to - 0,5 the population is increasing (question 3).

Summarizing, given the first order derivative, the carrying capacity of the population is 500, the value of k is 0,07, the values of P for which dP/dt is positive (incresing population) are those comprised in the range (-∞, -0,5) and those for which the population is decreasing are (-0,5,∞).

3 0
3 years ago
A portfolio management organization analyzes 60 stocks and constructs a mean-variance efficient portfolio using only these 60 se
ser-zykov [4K]

Answer:

In a single index model:

ri - rf = α i + β i (r M - rf ) + e i

Equivalently, using excess returns:

R i = α i + β i R M + e i

The variance of the rate of return can be decomposed into the components:

The variance due to the common market factor

Bi^2stdvm^2

The variance due to firm specific unanticipated events

STDV^2(ei)

In this model

Cov(ri,rj) =BiBjSTDV

The number of parameter estimates is:

n = 60 estimates of the mean E(ri )

n = 60 estimates of the sensitivity coefficient β i

n = 60 estimates of the firm-specific variance σ2(ei )

1 estimate of the market mean E(rM )

1 estimate of the market variance

Therefore, in total, 182 estimates.

The single index model reduces the total number of required estimates from 1,890 to 182. In general, the number of parameter estimates is reduced from:

(n^2 +3n / 2) to (3n+2)

5 0
3 years ago
One of the benefits of planning is how it:
Lorico [155]

Answer:

b. encourages people to engage in behaviors directly related to goal accomplishment

Explanation:

When companies engage in planning, they establish a guide for the operations, setting goals and preparing the strategies and actions that will help accomplish those goals. Because of this, planning helps the employees to focus and work towards achieving the objectives.

7 0
2 years ago
The direct write-off method of accounting for bad debts uses an allowance account. uses a contra asset account. is the preferred
jeyben [28]

Answer:

The correct answer is letter "D": does not require estimates of bad debt losses.

Explanation:

There are mainly two approaches while recognizing bad debts (unpaid debts):  <em>the allowance method </em>and <em>the direct write-off method</em>. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.

The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.

8 0
3 years ago
an element of design that appears three-demensional and encloses volume such as cube ,sphere,pyramid,or cylinder​
topjm [15]
Trypisum is the correct answer
8 0
3 years ago
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