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ad-work [718]
3 years ago
5

Hotel Cortez is an all-equity firm that has 10,900 shares of stock outstanding at a market price of $37 per share. The firm's ma

nagement has decided to issue $66,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 8 percent. What is the break-even EBIT
Business
1 answer:
Stella [2.4K]3 years ago
6 0

Answer:

$32,264.07

Explanation:

The computation of the Break-even EBIT  is shown below:

(EBIT ÷ Number of shares) = (EBIT - Interest) ÷ Number of shares  

(EBIT ÷ 10,900) = (EBIT - $66,000 × 0.08) ÷ (10,900 - (66,000 ÷ $37))

(EBIT ÷ 10,900) = (EBIT - $5,280) ÷ (10,900 - 1,783.78)

(EBIT ÷ 10,900) = (EBIT - $5,280) ÷ (9116.22)

After solving this, the value of break-even EBIT is $32,264.07

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The market price of pomegranates is $2, and JoAnne sells 25 pomegranates at the local farmer's market. The total revenue is and
leva [86]

Answer:

$50 and $2

Explanation:

The computation of the total revenue and the marginal revenue is shown below:

Total revenue is

= Price ×  quantity

= $2 × 25

= $50

And, the marginal revenue is received collected from one unit i.e price of the one units that equivalent to $2

Hence, we simply applied the above formula to determine the total revenue and the marginal revenue

4 0
3 years ago
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation achi
nata0808 [166]

Answer:

Margin Of Safety= $275,862

Explanation:

We can calculate the margin of safety easily by the formula given below

Formula: Margin of safety = Budgeted sales - Breakeven sales

As breakeven sales are not given in the data Firstly we need to find out break even sales in order to calculate margin of safety

Breakeven sales=  \frac{Total fixed cost}{Contribution margin ratio}

As you can see in the data fixed cost s given but contribution margin ratio is not

Contribution margin(Sales revenue - All variable cost)= $1,000,000 - ($270,000 + $240,000 + $150,000 + $50,000) = $1,000,000 - $710,000 = $290,000

Sales price per unit = Total sales/Number of units sold

Sales price per unit=  $1,000,000/50,000 = $20

Budgeted contribution margin= $290,000/50,000 = $5.80

Contribution margin ratio = Budgeted contribution margin per unit/Sales price per unit

Contribution margin ratio = $5.80/$20 = 29%

Lets put values in breakeven formula to find breakeven sales

Breakeven sales=  \frac{Total fixed cost}{Contribution margin ratio}

Breakeven sales=\frac{210000}{0.29}

Breakeven sales= $724,138

Now we have both budgeted sales and breakeven sales, we can  easily calculate e of safety

Margin of safety = $1,000,000- $724,138

Margin of safety = $275,862

7 0
3 years ago
_____________ is by far the most popular target for american franchisors seeking to establish franchises in other countries.
Ostrovityanka [42]
Canada is by tar the most popular target for american franchisors seeking to establish franchises in other countries. Canada is a great market for franchisors because it's close/easy to travel to. They have a large market and are similar to the U.S. with their expansion and growth as an economy. 
8 0
3 years ago
Corporations differ from partnerships and other forms of business association in two ways. One of these is that:________.
8090 [49]

Answer: c. they must be publicly registered or in some way officially acknowledged by the law.

Explanation:

Corporations tend to have many shareholders who would get hurt if the company fails and for this reason they are regulated by the law. They must be publicly registered to allow people to purchase and sell shares and they must have the official acknowledgement of the law.

The formation of a corporation can be complicated and require a relatively high number of legal processes and corporations are not regulated by the Federal Trade Commission.

Also, even though shareholders are technically entitled to the company's profits, they don't get to collect it immediately because the company needs money to function and grow.

7 0
3 years ago
__________ marketing involves developing a unique mix of goods and services for each individual customer.
AlladinOne [14]

One-to-one marketing involves developing a unique mix of goods and services for each individual customer.

What is One-to-one marketing?

  • Personalized marketing, also referred to as one-to-one marketing or individual marketing, may be a marketing strategy by which companies leverage digital technology and data analysis to deliver individualized messages and product offerings to current or prospective customers.
  • Advancements in data collection methods, analytics, digital electronics, and digital economics, have enabled marketers to deploy simpler real-time and prolonged customer experience personalization tactics.
  • Personalized marketing depends on many different types of technology for data collection, data classification, data analysis, data transfer, and data scalability.
  • Technology enables marketing professionals to gather first-party data such as gender, age group, location, and income and connect them with third-party data like click-through rates of online banner ads and social media participation

To learn more about One-to-one marketing: brainly.com/question/6189389

#SPJ4

6 0
1 year ago
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