Answer:
the Mitchell and the Sundial, Inc. should have a rate of 12.82%
Explanation:
a taxperson which the income of Mr. Jackson will be subject to a 22% tax rate
22% from $39,476 to $84,200
the bonds will be taxes at 22%
and we are asked at which rate they yield a 10% after tax
pre-tax x (1-t) = after-tax
pre-tax x (1-0.22) = 0.1
0.1/0.78 = pre-tax = 0.1282051
<u>Solution:</u>
The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.
Price = 2.5 * 2.50 = $6.25
Variable cost = $2.50
Fixed cost = $220,000
Break-Even Volume = Fixed cost / (Price - Variable cost)
= $220.000 / (6.25 - 2.50)
Break-Even Volume = 58,667 units
Answer:
A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40% chance you lose).
expected value = (50% x 20) + (10% x 50) + (40% x 0) = 10 + 5 + 0 = 15
B) There is a 50-50 chance of winning and there are no ties.
expected value = (50% x 50) + (50% x 0) + = 25 + 0 = 25
C) There is an 80% chance you lose and a 10% chance you win or tie.
expected value = (10% x 20) + (10% x 50) + (80% x 0) = 2 + 5 + 0 = 7
The expected value of an event is determined by adding up all the possible outcomes multiplied by their respective value.
Answer:
12%
Explanation:
For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:
Weight of capital structure
For debt
= $200 million ÷ $400 million
= 0.50
For equity
= 50 million × $4 ÷ $400 million
= 0.50
Now the WACC is
= 0.50 11% + 0.50 × 5%
= 8%
Since the value fo equity is declined by
= 50 × $3
= $150
Now the equity cost of capital is
= WACC + (WACC - interest rate) × (debt ÷ equity)
= 8% + (8% - 5%) × (200 ÷ 150)
= 12%
Answer:
C) may increase or decrease; increase.
As a result, the equilibrium price of digital cameras <u>may increase, decrease, or stay the same</u> and the equilibrium quantity <u>increases</u>.
Explanation:
We know for sure that the quantity demanded for digital cameras will increase, therefore increasing the equilibrium quantity.
Since the price of a key input falls, the price of digital cameras should decrease, but we must also consider the increase in the quantity demanded, which could generally increase the price of a product. So it is uncertain whether the price of digital cameras will increase, decrease or remain the same because opposing factors are involved.