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Y_Kistochka [10]
3 years ago
15

If a firm has a $1,500,000 debt limit before AT kd will change and if taxes are 40% and total equity in the capital structure is

40% and the rest is debt, calculate the debt breakpoint in the MCC schedule.
Business
1 answer:
andrew-mc [135]3 years ago
6 0

Answer:

$2,500,000

Explanation:

Break Point = Level of debt / Weight of debt

(100%-40%)

=60%

Hence:

= 1,500,000 / 60%

= $2,500,000

Therefore the debt breakpoint in the MCC schedule will be $2,500,000

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Trading in foreign currency options would most likely be: __________
kumpel [21]

There are different kinds of trade. Trading in foreign currency options would most likely be an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.

<h3>Currency option hedges</h3>

  • Currency option hedges are known to be tools that are used in international business.

An example, when an American importer is said to agree to buy some food equipment from a Chinese manufacturer at a later future date. The transaction will be carried out in Chinese currency.

The American importer has therefore made an hedge by buing currency options on the Chinese currency.

Learn more about trade from

brainly.com/question/4957225

3 0
3 years ago
Wen Co. purchased a building for $200,000. Wen paid $20,000 in lawyer and title fees. Wen also paid an additional $15,000 to mod
Alexeev081 [22]

Answer:

$235,000

Explanation:

A company can capitalize the cost of assets, delivery cost, legal & documentation charge and any other directly attributable cost that is incurred to bring the asset in the condition as intended by management.

Therefore, cost of asset, title fee and building modification fee shall be added in the cost of asset as follows:

Cost of Asset                           200,000

Lawyer and title fee                   20,000

Building Accommodation        <u>   15,000</u>

Total                                          <u>235,000</u>

4 0
3 years ago
The facts that money must withstand the wear and tear that comes from being used over and over again is a measure of its?
Lemur [1.5K]
I think the correct answer from the choices listed above is option C. <span>The facts that money must withstand the wear and tear that comes from being used over and over again is a measure of its durability. Hope this answers the question. Have a nice day.</span>
3 0
3 years ago
Read 2 more answers
The ledger of Oriole Company on July 31, 2017, includes the selected accounts below before adjusting entries have been.
Katarina [22]

Answer:

July 31                                            Dr.           Cr.

1.  Interest Receivable                 $220

   Interest Income                                        $220

2. Cost of Goods Sold                 $4,100  

   Supplies                                                    $4,100

3. Rent Expense                           $1,050

   Prepaid Rent                                             $1,050

4. Salaries and Wages Expense $3,500

   Salaries and Wages Payable                    $3.500

5. Depreciation                            $470    

   Accumulated Depreciation                       $470

6. Unearned Service Revenue   $4,850

   Serivce Revenue                                       $4,850

7.  Maintainance & repair Exp.    $2,150

    Maintainance & repair Payable               $2,150

Explanation:

1.

Interest Income from Note receivable  = $22,000 x 12% x 1/12 = 220

2.

Reduction in supllies will be adjusted in Cost of Goods Sold by $4,100 ( $22,500 - $18,400 ).

3.

Monthly rent accrues = 4,200 / 4 = $1,050

4.

Unpaid salaried are recorded as the Salaries and Wages Payable of $3,500

5.

Depreciation per month = $5,640 / 12 = $470

6.

Service revenue will b recognized and balance is transferred from unearned revenue to service revenue.

7.

Maintenance and repair costs is recorded as as the maintenance and repair payable by $2,150.

4 0
3 years ago
You’ve borrowed $23,072 on margin to buy shares in Ixnay, which is now selling at $41.2 per share. You invest 1,120 shares. Your
BlackZzzverrR [31]

Answer:

(a) Since the percentage margin is more than maintenance margin, there would be no call

(b) A margin call would be received when the price is $15.26

Explanation:

(a) Total investment = $23,072 × \frac{100}{50} = $46,144

Total shares = Total investment ÷ share price

= $46,144 ÷ $41.2 = 1,120

Value of share in market = new price × number of shares

= $41 × 1,120

= $45,920

Value of equity = Value of share in the market - borrowed cash

= $45,920 - $23,072

= $22,848

Percentage margin = Value of equity ÷ Value of shares

= ($22,848 ÷ $45,920) × 100%

= 49.76%

(b) Total number of shares = 1,120

Assumed value of shares = $1,120X

Borrowed fund = $23,072

Value of equity = $1,120X - $23,072

Margin = Value of equity ÷ Value of shares

0.35 = ($1,120X - $23,072) ÷ $1,120X

392X = $1,120X - $23,072

1512X = $23,072

X = $15.26

7 0
3 years ago
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