Knowles & Foreman Company took the following data from its income statement at the end of the current year:Per-unit product
cost$35Gross margin percentage41.20%Selling and administrative expenses$30,900Operating income$10,300How many units were sold during the year?a.3,333 unitsb.1,000 unitsc.1,500 unitsd.1,680 units
1 answer:
You might be interested in
Answer:
value of the firm = 21.20 million
value of the firm = 20.80 million
Explanation:
given data
current profits = $400,000
annual rate = 4 percent
opportunity cost = 6 percent
solution
we get here value of the firm before pays out current profits as dividend is express as
value of the firm = current profits ( 1+opportunity cost ) ÷ ( opportunity cost - annual rate ) ................1
put here value
value of the firm =
value of the firm = 21.20 million
and
value of the firm after pays is
value of the firm = current profits ( 1+annual rate ) ÷ ( opportunity cost - annual rate ) ................2
value of the firm =
value of the firm = 20.80 million