Answer:
<u>A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).</u>
<u>Explanation</u>:
Remember, the key word here is about whether diversification into a particular industry would likely increase shareholders value.
Thus, any company wanting to test this out would consider whether conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).
This option is better because improved profits implies better shareholder value.
Answer:
C) $77,090
Explanation:
June 69000 (40% in July, 50% in AUgust)
July 80000 (40% in August, 50% in Sepetember)
August 77500 (40% in September, 50% in October)
September 77900 (40% in October)
October 71800 (10% in October)
Total budgeted cash payments in October = 71,800 x 10% + 77,900 x 40% + 77,500 x 50% = 77,090
Answer
Closing costs are calculated based on price of the house minus down payment
Explanation
Closing costs are either brought as cash to closing or financed into a loan.They are usually used when people buy or rent properties and the closing cost is the amount a person pays based on the down payment. To estimate the closing cost, you subtract the down payment from the purchase price of the home.
Answer:
An increase in net operating income of $127,200
Explanation:
Consider the variable effect of the changes.
Sales ($400 x 400) $160,000
Less Variable expenses ( $82 x 400) ($32,800)
Contribution $127,200
therefore,
An increase in net operating income of $127,200
