Answer:
$30,000 decrease
Explanation:
The computation of the effect of the remaining company is shown below:
Sales $600,000
Less: variable Expenses -$420,000
Contribution $180,000
Less: Fixed Cost $150,000 ($300,000 × 50%)
Net Income $30,000
If Alligator segment is eliminated, the net income should be decreased by $30,000
We applied the above computation so the proper effect could arrive
B. independence
the rest of the answers are disadvantages
Answer:
9.44%
Explanation:
Market price = Next dividend/(return on equity - growth rate)
Therefore, we have:
$75 = $7 / (Return on equity - 5%)
(Return on equity - 5%) * $75 = $7
(Return on equity * $75) - (75$ * 5%) = $7
(Return on equity * $75) - $3.75 = $7
(Return on equity * $75) = $7 + $3.75
Return on equity = $10.75 / $75 = 0.1433, or 14.33%
WACC = (50% * 14.33%) + [(50% * 7% * (100% - 35%)] = 9.44%
Answer:
I think it's management or implement I will choose management if I were you