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tankabanditka [31]
3 years ago
6

Hurricane Industries had a net income of $129,650 and paid 40 percent of this amount to shareholders in dividends. During the ye

ar, the company sold $80,250 in new common stock. What was the company's cash flow to stockholders?
a. 28390
b. 49400
c. -28390
d. 51860
Business
2 answers:
oksano4ka [1.4K]3 years ago
8 0

Answer:

a. 28390

Explanation:

Stockholders cash flow is the net of cash inflows from stockholders and cash outflows to stockholders.

Net Income = $129,650

Payout Ratio = 40%

Cash outflow

Amount of Dividend Paid = $129,650 x 40% = $51,860

Cash Inflow

Common stock issue = $80,250

Net Stockholder's cash flow = $80,250 - $51,860

Net Stockholder's cash flow = $28,390

vesna_86 [32]3 years ago
5 0

Answer:

C. -28390

Explanation:

The formula for calculating cash flow to share holders is

CFS = dividends paid - net new equity raised

dividends = 129650 * 0.4 =51860

new common stock = 80250

CFS= 51860 - 80250 =-28390

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LL Incorporated's currently outstanding 7% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at
Hitman42 [59]

Answer:

The after-tax cost of debt of LL Incorporated  rounded to decimal places is 9.80%

Explanation:

First and foremost ,the before tax cost of debt is the yield to maturity of 14%

Having determined the before-tax cost of debt,the after-tax cost of debt is the before-tax cost of debt adjusted for marginal tax rate of 30% as computed thus:

after-tax cost of debt=before-tax cost of debt*(1-t)

the t is the tax rate of 30% which is also 0.3

after tax cost of debt=14%*(1-0.3)

                                  =14%*0.7=9.80%

6 0
3 years ago
Crane company produces flash drives for computers, which it sells for $20 each. the variable cost to make each flash drive is $1
Butoxors [25]
The break even level of sales is <span>$1400</span> +$13*n
7 0
3 years ago
When a company strives to achieve lower overall costs than rivals and appeals to a broad spectrum of customers, it pursues Multi
dybincka [34]

Answer:

an overall low-cost provider strategy.

Explanation:

Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.

This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.

A overall low-cost provider strategy is a strategic business model that's typically focused on a broad customer base (segment) while still making profit by providing low-cost goods and services to the customers, as well as underpricing rivals in the same industry.

This ultimately implies that, it is a business strategy that involves lowering the price of goods and services in order to stimulate demand, generate more revenue, draw more customers and gain a competitive advantage over competitors or rivals in the same industry.

Hence, when a company strives to achieve lower overall costs than its rivals in the same industry and appeals to a broad spectrum of customers, it is considered to pursue an overall low-cost provider strategy.

6 0
3 years ago
"when money specifies the value of something"
d1i1m1o1n [39]
<span>Money provides four key functions for an economy,
1. medium of exchange
2. unit of account
3. store of value
4. standard of deferred payment
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6 0
4 years ago
In a
artcher [175]

Answer:

Free-enterprise; government.

Explanation:

An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.

Basically, there are four (4) main types of economy and these are;

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II. Command economy.

III. Traditional economy.

IV. Free-enterprise economy.

A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.

Hence, in a free-enterprise system, supply and demand forces affect the production and consumption decisions. There is little to no government control in such a system.

4 0
3 years ago
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