Simple interest means that you only need to find the interest once and then keep adding it on every year. In this case, the interest would be 5.5% of $5000 every year, which is 275.
In 6 years, you'll have $1650, which is the amount earned from interest, plus $5000, which is the original investment.
So you'll have $6650 in 6 years.
Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
Answer:
60%
Explanation:
Contribution margin ratio is calculated by dividing the contribution margin amount by sales.
Contribution margin is sales less variable cost to produce a product.
Sale price 150
Variable cost (60)
Contribution margin 90
Contribution margin ratio: 90 / 150 = 60%
Answer:
The new EPS is $ 3.16
Explanation:
In order to compute the earnings per share after the share repurchase the shares repurchased must deducted from the weighted average number of share of 320,000 before repurchase so as to arrive at the number of shares eligible for the earnings after such repurchase.
The number of shares repurchased=$634,000/$62.97
= 10,068.29
The average weighted number of shares after repurchase is 309,931.71 (320,000-10,068.29)
EPS after repurchase=$980,000/309,931.71
=$3.16 per share
