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3 years ago

__________ is the amount a business earns over and above what it spends for salaries and other expenses.

Business

2 answers:

Darya [45]3 years ago

7 0

Answer:

Profits

Explanation:

All businesses are established with a motive to make profits. The reward a business earns for engaging in economic activities is its profits. In determining if a business has been profitable, total expenses are compared with the total revenue. If the revenue exceeds the net expenses, the business has made profits.

To increase the chance of making profits, managers use their skills and experiences to increase revenues while keeping the expenses low. Increasing revenue involves generating more income streams and increasing sales volume. Minimizing expenses include cost-cutting measures such as waste reduction.

cestrela7 [59]3 years ago

6 0

The answer seems to be “profit”.

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You are given the following information concerning Around Town Tours:Debt: 7,500, 6.8 percent coupon bonds outstanding, with 11

gtnhenbr [62]

Answer:

9.0%

Explanation:

Calculation to determine the WACC for this firm

First step

Common stock=284,000 × $68

Common stock= $19,312,000

Second step is to calculate the Preferred stock

Preferred stock=9,000 × $88

Preferred stock= $792,000

Debt= 7,500 × .979 × $1,000

Debt = $7,342,500

Value = $19,312,000 + 792,000 + $7,342,500

Value= $27,446,500

Second step

RE = .041 + 1.04(.146-.041)

RE= .1502

RE = ($2.62 /$68) + .025

RE= .0635

Average RE = (.1502+ .0635)/2

Average RE = .1069

RP = $8/$88

RP = .0909

Fourth step

$979 = [(.068 × $1,000) / 2] × ({1- 1 / [1 + (r/ 2)]22} / (r / 2)) + $1,000 / [1 + (r / 2)]22

r = 7.08 %

Now let calculate the WACC

WACC = ($19,312,000/$27,446,500)(.1069) + ($792,000/$27,446,500)(.0909) + ($7,342,500/$27,446,500)(.0708)(1 -.34)

WACC= .090*100

WACC=9.0 %

Therefore the WACC for this firm is 9.0%

7 0

3 years ago

Lani's generated net income of $911, depreciation expense was $47, and dividends paid were $25. Accounts payables increased by $

guajiro [1.7K]

Answer:

What was the net cash flow from operating activity? $959

Explanation:

Net Income 911

Addition to cash

Depreciation 47

958

Operation activities

Account Payable 15 Increase

Account receivables -28 Increase

Inventory 14 Decrease

Cash flow from

operating activities 959

5 0

3 years ago

Vangaurd Health System bonds have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If y

Umnica [9.8K]

Answer:

Price willing to pay=$1105.94

Explanation:

Annual Coupon Payment=$1,000*0.08

Annual Coupon Payment=$80

Calculating Present Value (PV) of Par Value:

$PV=\frac{FV}{(1+i)^{20}}$

Where:

i is the rate of return.

FV is par value

$PV=\frac{\$1000}{(1+0.07)^{20}}$

PV= $258.419.

Calculating PV of annual Coupon Payment:

$PV=A\frac{1-(1+i)^{-20}}{i}$

i is the coupon rate

A is the annual Payment

$PV=\$80\frac{1-(1+0.07)^{-20}}{0.07}$

PV=$847.521

Price willing to pay= Present Value (PV) of Par Value+ PV of annual Coupon Payment

Price willing to pay=$258.419+$847.521

Price willing to pay=$1105.94

8 0

3 years ago

Interest rates on 3-year Treasury securities are currently 1.92%, while 10-year Treasury securities yield 5.62%. If the pure exp

FromTheMoon [43]

Answer: 7.24%

Explanation:

From the question, we are told that:

3 years treasury securities have an interest rate = 1.92%

10 years treasury security has an interest rate = 5.62%

Let the 7 year treasury security interest in 3 years be represented by z.

Based on the expectation theory

( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10

(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10

(1.0192)^3 (1 + z%)^7 = (1.0562)^10

1.05871(1 + z%)^7 = 1.72767

Divide both side by 1.05871

(1 + z%)^7 = 1.72767/1.05871

(1 + z%)^7= 1.6319

1 + z% = 1.6319^1/7

1 + z% = 1.6319^0.1429

1 + z% = 1.0724

z% = 1.0724 - 1

z% = 0.0724

We then convert the decimal to percentage

z = 7.24%

The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .

3 0

3 years ago

Your client has called for help with that bank fees in QuickBooks Online you began by asking them to open the bank and tab in th

viktelen [127]

This doesn’t make sense :(

3 0

3 years ago