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ELEN [110]
3 years ago
10

AA Tours is comparing two capital structures to determine how to best finance its operations. The first option consists of all e

quity financing. The second option is based on a debt-equity ratio of 0.45. What should AA Tours do if its expected earnings before interest and taxes (EBIT) are less than the break-even level? Assume there are no taxes. Group of answer choices
Business
1 answer:
-Dominant- [34]3 years ago
8 0

Answer:

d.select the unlevered option since the expected EBIT is less than the break-even level

Explanation:

Unlevered option comprises of more equity than the  debt, and is thus less risky. While an option leveraged is even more debt than equity, which brings additional risk. Since the estimated EBIT is below the break-even point, it would be safer to go for an unlevered (less riskier) option.

Hence, the correct option is d.

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When an individual goes to a supermarket and selects a box of cereal from several choices of type, brand, and size, it is an exa
Sidana [21]

Intermediaries are often known as individuals who are known to be a link in the distribution process. They connect the various channel partners.

When an individual goes to a supermarket and selects a box of cereal from several choices of type, brand, and size, it is an example of the value of marketing intermediaries who provide an assortment.

There are four types of intermediary. They are

  1. Agents
  2. Wholesalers
  3. Distributor, and
  4. Retailers.

An organization often has many intermediaries in its distribution channel as they want.

Conclusively, amidst the types of intermediaries, helps provide several alternative to humans, so that we can choose base on our preference.

Learn more from

brainly.com/question/9727245

6 0
3 years ago
Why is education considered as an investment
eimsori [14]
Education is considered as an investment in human capital. Human capital can be described as the knowledge, abilities and skills of an individual, acquired through education, training and experience, which help the latter to be more productive and thus improve his potential income earning.
7 0
3 years ago
Financial data for Joel de Paris, Inc., for last year follow:
Anon25 [30]

Answer:

Operating profit margin =  operating profits ÷ turnover

                                        = 405000 ÷  4,050,000

                                        = 0.1 = 10%

ROI      = Net operating Income/ Average Operating assets

             = 405,000 ÷ 1620,000

             = 0.25 = 25%

(note: Average operating assets = ( opening operating assets + closing operating assets ) ÷ 2 )

Turnover = sales/ average operating assets

               = 4,050,000/ 1620,000

               = 2.5

Residual income

minimum required return = minimum required rate of return ×  average                   operating assets

                  = 15% × 1620000

                  = 243000

Residual income = net operating income - minimum required return

                            = 162000

8 0
3 years ago
Burnett Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and wil
just olya [345]

Answer:

56.47% is the current share price

Explanation:

To solve this question, we use the mathematical approach.

First, we calculate the current share price =

$8.45*Present value of annuity factor(11.2%,13)

But before we can get the value for the current share price, we need the value for the present value of annuity factor.

Present value of annuity factor = Annuity[1-(1+interest rate)^-time period]/rate =

8.45[1-(1.112)^-13]/0.112=

= $8.45*6.682519757 = 56.47%

6 0
3 years ago
Which strategy best helps a famous brand company reach consumers
g100num [7]

Answer:

c) advertising nationally

Explanation:

This is a common mass marketing strategy used by famous brands,  and the only way to make sure all cohorts and demographics see your brand message.  Showcasing at trade shows will be effective just for a smaller group of people. Advertising nationally will not only help you attract more consumers, but it will help you build better marketing analytics and segmentation too.

8 0
3 years ago
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