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Nesterboy [21]
3 years ago
10

Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt.

Plan II would result in 8,700 shares of stock and $155,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $80,000. The all-equity plan would result in 18,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)

Business
1 answer:
spayn [35]3 years ago
4 0

Answer:

Please find attached detailed solution to the above question.

Explanation:

Please as attached detailed solution.

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The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years,
Lorico [155]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Initial investment= $270,000

Cash flow= $60,000

Number of years= 5

Discount rate= 12%

<u>To calculate the net present value (NPV), we need to use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

∑[Cf/(1+i)^n]:

Cf1= 60,000/1.12= 53,571.43

Cf2= 60,000/1.12^2= 47,831.63

.....

Cf5= 60,000/1.12^5= 34,045.61

∑[Cf/(1+i)^n]= 216,286.57

<u>Now, the NPV:</u>

NPV= -270,000 + 216,286.57

NPV= -53,713.43

5 0
3 years ago
The Occupational Safety and Health Act (OSHA) mandated that first-aid kits be available in business establishments employing mor
Galina-37 [17]

Answer:

The correct answer is D

Explanation:

OSHA stands for Occupational Safety and Health Act, which is passed in order to encourage the safer workplace conditions in the U.S. They set the standards as well as perform the inspections at the job sites.

OSHA made mandatary the first aid kits to be available in the business who are employing more than 3 years people. So, this newly formed company was successful in developing the kits, this is example of the government regulations as a source for the ideas of the new products.

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The __________ made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Ac
BaLLatris [955]

The Wheeler-Lea amendment made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act.

<h3>What was Federal Trade Commission Act?</h3>

The Federal Trade Commission was founded by the Federal Trade Commission Act of 1914, federal legislation of the United States. The Act, which was passed by US President Woodrow Wilson in 1914, forbids unfair business practices and unfair techniques of competition.

Unfair or misleading acts or practices in or affecting commerce are prohibited by Section 5 of the Federal Trade Commission Act (FTC Act) (15 USC 45). All individuals engaged in business, including banks, are subject to the restriction.

The Federal Trade Commission Act's Section 5 was modified by the Wheeler-Lea Act of 1938, which made "unfair or misleading acts or practices" and "unfair methods of competition" illegal. Civil penalties were offered for breaking Section 5 orders.

To know more about Wheeler-Lea Act refer to: brainly.com/question/16938880

#SPJ4

3 0
1 year ago
How does this app work?
konstantin123 [22]
Well people from all over answer u questions and when u answer u get points and level up and u need points to ask questions
6 0
3 years ago
Read 2 more answers
_____ benefit(s) from large economies of scale, in which the costs of goods decrease as output increases. natural monopolies per
adelina 88 [10]
Natural monopolies <span>benefit from large economies of scale, in which the costs of goods decrease as output increases.
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