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ira [324]
3 years ago
8

A firm is considering financing its $20 million dollars of assets with one of two plans. Plan A consists of $3 million of debt w

ith an interest rate of 6.6%, and 1.7 million shares of common stock. Plan B consists of $10 million dollars in debt with an interest rate of 7.2%, and 1 million shares of common stock. The firm’s tax rate is 30%. Calculate the EBIT-EPS breakeven point, and then calculate the earnings per share at this level of EBIT.

Business
1 answer:
skad [1K]3 years ago
3 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses
Airida [17]

Answer:

Explanation:

Hi, I have attached the full question as images below

Total Product Cost = ($70,000 + $35,500 + $43,700) ÷ 1,000 = $149.20

Total Period Cost = $30,600 + $29,300 = $59,900

Total Direct Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,900

Total Indirect Manufacturing Cost = $28,300

Total Manufacturing Cost  = $70,000 + $35,500 + $43,700 = $149,200

Total Non Manufacturing Cost = $30,600 + $29,300 = $59,900

Total Conversion Cost = $35,500 + $43,700 = $79,200

Total Prime Cost = $70,000 + $35,500 = $105,500

Total Variable Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,000

Total Fixed Costs = $25,200 + $18,400 + $28,300 = $71,900

Variable Cost per unit = ($70,000 + $35,500 + $15,400 + $12,200 + $4,100) ÷ 1000 = $137.20

Incremental manufacturing cost = ($70,000 + $35,500 + $15,400) ÷ 1,000 = $120.90

5 0
3 years ago
Why do you earn more money using compound interest than you would using simple interest?
PilotLPTM [1.2K]

Interest is calculated as a <u>percentage of the principal</u>. With compound interest, the interest earned is <u>added back into the principle</u> so during the next period you start earning interest on the new, higher amount. Every time the interest compounds, it gets added into the principal and you earn more and more interest.

Example:

10% simple interest on $100:

(.1 * 100) +100 = 10 + 100 = $110

But if you do 10% interest compounding monthly for 3 months you have:

Month 1: (.1 * 100) +100 = 10 + 100 = $110

Month 2: (.1*110) +110 = $121

Month 3: (.1*121) + 121 = $133.10

Even with this simple example you can see how much more money is earned when your interest is compounded and added back into the principal.

8 0
4 years ago
Assume that Global Cleaning Service performed cleaning services for a department store on account for​ $180. How would this tran
tamaranim1 [39]

Answer:

(B) Increase both assets and equity by $180

Explanation:

The transaction analysis model tells us that:

Assets = Liabilities + Owner's Equity

Owner's equity = Contributed Capital + Retained Earnings

Retained Earnings = Net Income − Dividends

and

Net Income = Income − Expenses

The expanded accounting equation is obtain if all substitutions are made:

Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends

In the Global Cleaning Service`s case:

Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.  

7 0
3 years ago
Heightened Homes is a real estate firm based in Texas. The company ensures that employees' pay is dependent on what they are cap
Oxana [17]

Answer: skill-based pay systems

Explanation:

3 0
3 years ago
Mrs. roberts has original medicare and would like to enroll in a private fee-for-service (pffs) plan. all types of pffs plans ar
bekas [8.4K]

The option that Mrs. Roberts could consider before selecting a PFFS plan is:  A Medicare Advantage Prescription Drug  PFFS plan that had both medical benefits and Part D prescription drug coverage.

<h3>What is Medicare?</h3>

Medicare can  be defined as a heath coverage that help to cover the medical costs of people  under the plan.

Based on the given scenario she should  choose a Medicare Advantage Prescription Drug PFFS plan which will includes medical health care benefits as well as a drug prescription coverage.

Therefore she should consider Medicare Advantage Prescription Drug  PFFS plan.

Learn more about medicare here:brainly.com/question/1960701

#SPJ1

3 0
2 years ago
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