100%Equity
<span>---------------------------- </span>
<span>EBIT: $200,000 </span>
<span>Interest: $0 </span>
<span>Taxes: ($80,000) </span>
<span>EAT: $120,000 </span>
<span>Equity: $1,000,000 </span>
<span>ROE12.0% </span>
<span>50% Debt </span>
<span>-------------- </span>
<span>EBIT: $200,000 </span>
<span>Interest: ($40,000) </span>
<span>Taxes: ($64,000) </span>
<span>EAT: $96,000 </span>
<span>Equity: $500,000 </span>
<span>ROE: 19.2% </span>
<span>This is my thought and is contingent on interest expense being tax deductible to the corporation. </span>
<span>Under the equity scenario. Taxes are $80,000 or 40% of $200,000 which is 20% of the $1mm asset base. So the $120,000 earnings after tax divided by the $1mm base is 12% </span>
<span>With 50% leverage, you deduct $40,000 (8% of $500,000 financing) and taxes on remaining amount. The new equity base is smaller at $500,000 so the ROE is higher at 19.2%.</span>
The journey of a manufactured goods from its raw materials
to a consumer’s hands is its marketing channel. The initial step in scheming a
marketing channel is recognizing what the target consumer necessitates. Getting
this step right is critical, or you’ll wind up with a mound of unsold goods.
Market research is a complicated industry, but with the correct implements and direction,
you can make a high-demand good that essentially sells itself.
Answer: Britain has been offering interest rates since the 18th century.
Explanation:
Over the decades, interest rates offered by British banks have fluctuated. During the eighteenth century, that interest rate varied between 4 and 5%. During the 19th century, the interest rate ranged between 4 and 10%. This policy experienced many fluctuations during the 20th century and during that period formed the form as we know it today. In the late 1970s, the interest rate in Britain was the highest at 17%. The government justified this move as the only mechanism in the fight against inflation. This was followed by years of varying interest rate turbulence in Britain. According to the information available in 2007. by 2017, the interest rate in Britain has fallen significantly and stands at 5.75%, which is the lowest rate in recent centuries. Interest history is almost as old as civilization. The first vestiges of interest can be traced back to the Babylonian culture when interest was calculated based on wheat and other goods.
Sales for January = 50,000 units
Sales for February = January sales + 4 % of January sales = 50,000 units + 4 % * 50,000 units
Sales for February = 52,000 units
Total units needed to be purchased in February = Sales for February + Ending inventory - Beginning Inventory
Ending inventory = 10,000 units
Beginning inventory = 10,000 units
Total units needed to be purchased in February = 52,000 units + 10,000 units - 10,000 units
Total units needed to be purchased in February = 52,000 units
Answer: 1. a. The Statute of Frauds
19. a. Calculation error
Explanation:
1. The Statute of Frauds
This is a common law concept that requires that certain types of transactions and/contracts are to be immortalised in writing.
Some of the contracts involved include the sale of Land ( which this scenario falls under) and contracts that will last a year and beyond.
19. Fraud is the act of misrepresenting facts to deceive others intentionally and make more often than not make financial gains from it.
The key thing to remember is that this done INTENTIONALLY. A Calculation error is just that, an Error. So it is not intentional which means that it is not an element of fraud.
