Answer:
Explanation:
An increase of sales to $33000: (33000 - 30000) / 30000 = 10%
Sales 33000
Cost (22000+ 10% of 22000) (24200
)
EBIT 8800
Tax 40% 3520
Net Income 5280
Assets (56100+10% of 56100) 61710
Total 58960
Debt 20500
Equity 38460
Total 61710
External financing needed is the difference between Assets and Liabilities+Equity, which is 61710 - 58960 = 2750
Answer: Cost leadership strategy
Explanation:
Cost leadership strategy is a business strategy in which a business operates at the lowest possible cost within it's industry so as to create a competitive advantage. This strategy is controlled by size, scope and cumulative experience, efficiency, etc.
Cost leadership strategy helps to :
I. Reduce the rate of competition in the market.
II. Enhance business sustainability.
III. Yield more profit for businesses.
Answer: $22.22 and $9.52
Explanation:
The market to book ratio compares market value and book value. In this question, the market to book ratio is 4.5 times which means that Tina's Track Supply's common stock is trading at 4.5 times of the book value.
4.5 = ![\frac{Market value}{Book Value}](https://tex.z-dn.net/?f=%5Cfrac%7BMarket%20value%7D%7BBook%20Value%7D)
= ![\frac{100}{Book Value}](https://tex.z-dn.net/?f=%5Cfrac%7B100%7D%7BBook%20Value%7D)
Book value = ![\frac{100}{4.5}](https://tex.z-dn.net/?f=%5Cfrac%7B100%7D%7B4.5%7D)
=$22.22
The Price Earning ratio is calculated by dividing price per share by earnings per share (EPS)
10.5 = ![\frac{100}{EPS}](https://tex.z-dn.net/?f=%5Cfrac%7B100%7D%7BEPS%7D)
EPS = ![\frac{100}{10.5}](https://tex.z-dn.net/?f=%5Cfrac%7B100%7D%7B10.5%7D)
=$9.52
Answer:
The free cash flow that Wells generated is $2050.
Explanation:
EBIT = sales - operating costs - depreciation
= $8,250 - $4,500 - $950
= $2,800
free cash flow
= EBIT(1 - t) + depreciation - investment in fixed assets - investment in NOWC
= $2100 + $950 - $750 - $250
= $2050
Therefore, The free cash flow that Wells generated is $2050.
The correct answer to this question is "decrease to a new equilibrium quantity." Hundreds of clothing stores closed in new york city this year. the supply of clothes, at each price level, will <span>decrease to a new equilibrium quantity. Hope this helps answer your question.</span>