<span>A $10 million operating expense would be immediately expensed, increasing operating expenses by $10 million. This would lead to a reduction in taxes of $3.5 million. earnings would decline by $6.5 million. There would be no effect on next year's earnings.</span>
Answer:
$570,000
Explanation:
Calculation to determine How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Using this formula
Total Amount borrowed=Bonds*Face value*95% of par
Let plug in the formula
Total Amount borrowed=800*$750*0.95
Total Amount borrowed=$570,000
Therefore the amount the Mystery, Inc. will be able to borrow (in total) if each bond is sold at 95% of par is $570,000
Answer:
a. $40,000
b. $200
Explanation:
The computation of break-even point is shown below:-
Break-even Point (Q) = TFC ÷ (Price - AVC)
Now we will put the values into the above formula.
a. Break even point = $100,000 ÷ ($10 - $7.5)
= $100,000 ÷ 2.5
= $40,000
b. Break even point = $600,000 ÷ ($15,000 - $12,000)
= $600,000 ÷ $3,000
= $200
Therefore for computing the break even point we simply applied the above formula.
Answer:
c. sell stop limit order.
Explanation:
In this case, a stop order would be issued by a client that instructs his/her broker to sell the stock if the price falls below $40.
But this is a stop limit order because the client has instructed specifically that he/she will not accept a stock price lower than $39.75. A stop limit order sets an specific price limit that the customer will be willing to accept.
Answer:
I'm not 100% sure but I think its D
