1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andrej [43]
3 years ago
12

Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets.

Its tax bracket is 40%. If the firm uses short-term debt, its rate will be 7.5%, and if it uses long-term debt, its rate will be 9%. By how much will their earnings after taxes change if they choose the more aggressive financing plan instead of the more conservative plan
Business
1 answer:
Zepler [3.9K]3 years ago
8 0

Answer:

Hicks Health Clubs, Inc. earnings after taxes will change by minus $10,800 if they choose the more aggressive financing plan instead of the more conservative plan.

Explanation:

Note: I experienced a difficulty submitting the explanation here. Kindly find attached the full answer and explanation in the attached Microsoft word document.

Download docx
You might be interested in
2 2 user: the cost to mail a package is $7 for the first 2 pounds and 30 cents for each additional ounce. which of the following
NARA [144]

f(x) = 7 + 0.3x

tell me if I am wrong

7 0
3 years ago
Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $740 with his state income tax ret
oksano4ka [1.4K]

Answer: $5960

Explanation:

Based on the analysis and the information provided in the question, the amount of taxes that Tim can deduct as an itemized deduction will be the addition of the Tim's state income tax return for the previous year, the state tax that was held during the year and the estimated state tax payment. This will be:

= $740 + $4200 + $1020

= $5960

Therefore, the amount of taxes that Tim can deduct as an itemized deduction will be $5960.

3 0
3 years ago
Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer. The credit ca
zimovet [89]

Answer:

Account receivable balance = $1,100 - ($1,100* 5%)

Account receivable balance =$1,100 - $55

Account receivable balance = $1,045

Date    Account Title        Debit       Credit

           Cash Account      $1,045

                 To Accounts receivable  $1,045

7 0
3 years ago
The __________ states that businesses will produce more products when they can sell them at higher prices.
jeka94
The answer that would best complete the given statement above would be option A. It is the LAW OF SUPPLY that states that businesses will produce more products when they can sell them at higher prices. On the other hand, the law of demand<span> states that buyers will want more products when prices are low. Hope this answers your question.</span>
7 0
2 years ago
Read 2 more answers
French mining engineer Henri Fayol defined management as a process involving which of the following?
AleksandrR [38]

Answer:

Option D

Explanation:

As per French mining engineer Henri Fayol, management as a process involves five elements -

a) Planning

b) Organizing

c) Commanding (leading)

d) Coordinating

e) Controlling.

Hence, all the three elements i.e Planning, organizing and Leading are present

Hence, option D is correct

8 0
2 years ago
Other questions:
  • Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years
    14·1 answer
  • In​ economics, the best definition of technology is: A. the speed of communication. B. the development of new products. C. the p
    14·1 answer
  • The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods invent
    6·1 answer
  • If a material error is discovered in an accounting period subsequent to the period in which the error is made:
    14·1 answer
  • The estimated unit costs for a company to produce and sell a product at a level of 15,000 units per month are as follows:Cost It
    12·1 answer
  • From the following facts calculate what Eva Main paid Jade Co. for the purchase of a dining room set. Sale terms are 4​/10, ​n/3
    14·1 answer
  • Wilcox Electronics uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Ide
    15·1 answer
  • In the long-run, the supply of high-skill is perfectly elastic.
    7·1 answer
  • If a beneficiary is enrolled in a ma-only hmo and they also sign up for a pdp plan, they will be automatically dropped from thei
    10·1 answer
  • the body that determines how taxes will be used to support schools, what will or will not be taught, and the length of the schoo
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!