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barxatty [35]
4 years ago
10

A local restaurant owner is considering expanding into another rural area. The expansion project will be financed through a line

of credit with City Bank. The administrative costs of obtaining the line of credit are​ $500, and the interest payments are expected to be​ $1,000 per month. The new restaurant will occupy an existing building that can be rented for​ $2,500 per month. The incremental cash flows for the new restaurant include A. ​$500 administrative​ costs, $1,000 per month interest​ payments, $2,500 per month rent. B. ​$2,500 per month rent. C. ​$500 administrative​ costs, $2,500 per month rent. D. ​$1,000 per month interest​ payments, $2,500 per month rent.
Business
1 answer:
Vladimir79 [104]4 years ago
5 0

Answer:

B) ​$2,500 per month rent.

Explanation:

Incremental cash flows do not include interest payments on investment capital, since the cash flows should be equally generated if you invest your own money, another partner invests his money or someone else lends it to you. The same logic applies to the administrative costs of the credit line.

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Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constan
White raven [17]

Answer:

the stock value per share is $53

Explanation:

The computation of the stock value per share is shown below:

Value of operations = Free cash flows ÷ ( Capitalization Rate - growth rate )

= $175 Million ÷ ( (10% - 4%)

= $2,917  

Now stock value per share is

= $2,917 ÷  55 million shares

= $53 per share

Hence, the stock value per share is $53

8 0
3 years ago
The supply and demand curves show data for trendy smartphone covers. How would the graph change if the producer hired a popular
yaroslaw [1]

Answer: The correct answer is option B; Add D2 to the right of D, showing an increase in demand and increase in equilibrium price.

Explanation: The demand for a commodity is usually affected either positively or negatively by some factors or determinants. Foremost among the factors of demand is price of the commodity. Other factors include;

(a) Price of substitute commodities

(b) Consumers preferences

(c) Population

(d) Weather conditions

(e) Advertising

In the question above, the use of a popular actor as the spokesperson of the product is a form of advertising that is intended to improve upon the perception of the commodity and hence encourage consumers to buy more of it. If the popular personality endorses a product, there is an almost one hundred percent likelihood that consumers would see the product as a preferred choice and this would cause the demand to go up or increase.

An increase in the market demand would be signified by the outward shift of the demand curve to the right from D to D2. Since the x-axis shows the quantity demanded increasing towards the right hand side, then an increase in market demand would be reflected by a shift of the demand curve to the right.

As a result of that, the price would now move from P to P2 which shows an increase in equilibrium price. Also the quantity demanded would move from Q to Q2 which also indicates an increase in demand.

6 0
3 years ago
The ________ mark is a certification that is granted to products that are determined to promote sustainable farming and provide
DaniilM [7]

The word referred to above is called the Fairtrade Mark. The purpose of this mark is to enable consumers to encourage sustainable farming practices by buying produces that has such a mark.

<h3>Who issues the Fairtrade Mark?</h3>

The Fairtrade Certification which is issued by a third-party auditor called FLOCERT is used to identify companies that have manufactured products that comply with Fairtrade's international standards.

The Fairtrade mark standards look at three major areas:

  • Environmental Standards
  • Economic standards
  • Social standards

Please see the link below for more about Fairtrade Mark:

brainly.com/question/797907

3 0
2 years ago
Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt abo
wlad13 [49]

Answer:

test marketing stage

Explanation:

Test marketing stage  -

It is the method , where the population is made to decide about the sample of any product before the complete launch of the product , is known as test marketing stage .

This method helps to get the proper opinion of the product , whether it can survive in the market or not , before the launch of the complete range of product .

hence , from the question , the correct term for the given information of the question is test marketing stage .

8 0
4 years ago
The Celler-Kefauver Antimerger Act of 1950:________.
UkoKoshka [18]

Answer:

b. banned anticompetitive mergers that occurred as a result of one company acquiring the physical assets of another company.

Explanation:

  • The Sailor-Kefauver Act was a United States federal law passed in 1950 that amended and strengthened the Clayton Antitrust Act of 1914, which amended the Sherman Antitrust Act of 1890.
  • The Sailor-Kefauver Act was passed to eliminate a loophole to link firms to the acquisition and acquisition of assets that are not direct competitors.
  • The Clayton Act prohibited stock purchase mergers, the competition was reduced, and smarter traders were able to find ways to buy competitive property around the Clayton Act. Under the Sailor-Kefauver Act, asset acquisition competition decreases, and that practice is banned.
5 0
4 years ago
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