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aev [14]
3 years ago
7

According to the​ Break-Even EBIT​ analysis, shareholders are​ ____ off with debt when EBIT is​ _____ the​ Break-Even EBIT level

. A. ​worse; above B. ​better; above C. ​better; below D. ​better; equal to
Business
1 answer:
Kobotan [32]3 years ago
3 0

Answer:

Answer B.

Explanation:

EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.

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John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather
jeka94

Answer:

John must invest $3719.4

Explanation:

It is given that John grandfather withdraws $120 per month for 3 year

So total month = 12 ×3 =36 months

Total amount withdrawn S = 36×120 = 4320

m = 12 times per year

Rate of interest i = 5 % = 0.05

We know that S=P(1+\frac{i}{m})^{mt}

4320=P(1+\frac{0.05}{12})^{36}

4320=P\times 1.1614

P = $3719.41

So john must invest $3719.4

6 0
3 years ago
How is aggregate demand related to individual demand
marusya05 [52]

Answer: Individual demand refers to the demand for a good or a service by an individual (or a household). Individual demand comes from the interaction of an individual's desires. Where as an aggregate demand is an economic measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.

Explanation:

7 0
2 years ago
an information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When t
dangina [55]
Given:
<span>initial cost $95,000 to implement over a one-year period and will produce no savings during that year.
the company will save $30,000 during the first year of operation.
For the next four years, the savings will be $20,000 per year.
5 percent discount rate

Year      Future Value            Factor                Present Value
0                                                                       (95,000)
1               30,000                 (1+0.05)</span>¹              28,571.43<span>
2               20,000                 (1+0.05)</span>²              18,140.59
3               20,000                 (1+0.05)³              17,276.75
4               20,000                 (1+0.05)⁴             16,454.05
5               20,000                 (1+0.05)⁵             15,670.52
Net Present Value                              1,113.34

Present Value = Future Value / Factor

The NPV of the system is 1,113.34
4 0
2 years ago
Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertica
sukhopar [10]

Answer:

Possible options are:

A. The equilibrium price is $5.00

B. The equilibrium, quantity is 100 units

C. There is an excess supply of 75 units at $5.00

D. There is an excess demand of 75 units at $5.00

Answer: C. There is an excess supply of 75 units at $5.00

Explanation:

The slope of the demand curve (downward to the right) indicates that a greater quantity will be demanded when the price is lower. On the other hand, the slope of the supply curve (upward to the right) tells us that as the price goes up, producers are willing to produce more goods.

In this situation, If the consumers' willingness to pay for the hundredth unit and the seller's willingness to accept for the 175th unit are both $5.00, then it means there is an excess supply of 75 units at $5.00

4 0
3 years ago
Assume that currently banks pay 2% interest on money that customers deposit in savings accounts. As the overall amount of money
postnew [5]

Answer:

The supply of savings increases.

Explanation:

We know that the supply of loanable funds is dependent upon the amount of deposits in the savings account. Supply curve of loanable funds represents the direct relationship between the quantity supplied and the interest rate. It is a upward sloping curve which indicates that an increase in the interest rate will lead to increase the quantity supply of loanable funds.

There is a change in the supply of loanable funds if there is any change in the savings behavior of the customers. If the savings of the customers increases then as a result the supply of savings also increases.

3 0
3 years ago
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