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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
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What is the difference between statistics and business statistics?​
Alik [6]

Answer:

Statistics is extended part of mathematics were you deal about only formulas numbers and business statistics deals about your knowledge about financial business marketing.

8 0
3 years ago
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A decrease in energy prices will: decrease short-run aggregate supply. increase short-run aggregate supply. decrease aggregate d
Alex73 [517]

Answer:

increase short-run aggregate supply.

Explanation:

Given that energy is an important part of the production process. It is often considered to be the next in line after labor, thereby having a significant effect on the economy's aggregate supply of real production.

Hence, a decrease in energy prices will decrease the production cost and in turn lead to an increase in short-run aggregate supply, thereby making the SRAS curve shift rightward.

This is because a decrease in energy prices will make it possible for companies to increase their supply of real production at a cheaper cost

7 0
2 years ago
Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $ 3,500 winnings in the bank. The reserve requ
Katarina [22]

Answer:

$3,325

Explanation:

Reserves are maintained to fulfil the customers withdrawal requirement. It is imposed by the State bank over the Banks to hold a specific percent of cash as reserves. Bank hold the reserves and invest or utilize the residual in the market.

In this question 5% of $3,500 will be reserved and the remaining $3,325 will be available for the money supply in the market in different forms.

the maximum possible increase in the money supply as a result of your bank deposit is $3,325.

5 0
2 years ago
individuals in different segments should have ______ within the segment and ______ across the segments.
pochemuha

Answer:

similarities; differences Is correct answer

Explanation:

individuals in different segments should have similarities within the segment and differences across the segments.

(Hope this helps can I pls have brainlist (crown)☺️)

5 0
2 years ago
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leas
stepladder [879]

Answer:

Calculating the cost of each activity,

Unloading = $ 80,100

Counting = $ 37,500

Inspecting = $54,450

Explanation:

Given:

Unloading lease = $15,000 per year

Fuel for the forklift = $3,600 per year

Maintenance for the forklift = $1,500 per year

Inspection uses some special testing equipment that has depreciation of $1,200 per year

Operating cost = $750.

Receiving employees average salary = $50,000 per year

Salaries; 3 × 50,000 = 150,000

Unloading salary = 40%  × 150,000 = 60,000

Counting salary = 25%  × 150,000 = 37,500

Inspecting salary = 35% × 150,000 = 52,500

                              Unloading                 Counting                    Inspection

Equipment               15,000                                                             1,200

Fuel                           3,600

Operation cost          1,500                                                                750

Labor                       60,000                   37,500                          52,500

Total cost                 80,100                   37,500                          54,450

6 0
2 years ago
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