State tax is 5%, so 0,05
0,05•4000=200$
Federal tax is 25% so 0,25
0,25•4000=1000$
Total of taxes to pay =1000+200=1200$
So the real profit will be
4000-1200=3800$
The real value of Annie's profit is 3800$
Answer:
B
Explanation:
when debts are sent to collection agencies they start to accrue interest which can quickly make an unsolved debt $100's very quickly
Answer:
It is a disadvantage to continue processing QI. The lost on profit is= $5500
Explanation:
Product QI has been allocated $18,300 of the total joint costs of $39,000.
A total of 2,500 units of product QI are produced.
Product QI can be sold at the split-off point for $14 per unit.
It can be processed further for an additional total cost of $10,500 and then sold for $16 per unit.
<u>Split-off point:</u>
Sales= 2500q*$14=$35000
Total cost=$18300
Profit=$16700
<u>Post-split-off:</u>
Sales=2500*16=$40000
Cost previous split-off=$18300
Added cost= $10500
Profit=$11200
Comparing profits (16700>11200) it is not beneficial to continue processing QI products.
Answer:
The answer is below
Explanation:
Vertical merger is a business term, that describes the acquisition of one or more firms by another firm, in which the firms involved are not in direct competition.
In other words, it is a situation where by, a firm acquires a supplier or distributor. A vertical merger, is considered to result to reduced cost and increment in productivity of the firm that acquires other firm.
Benefits of Vertical Merger.
1. Operational Improvements: one of the benefits vertical mergers, is in operational improvements, such that, as the reduction in cost, the delay in delivery of supplies will be greatly reduced or outrightly eliminated. It could also created avenue or marketing opportunity in supplying materials to competitors or other firms
2. Financial Synergies: this implies that, vertical merger could increase the company access to capital, funds, or credit facility from banks, which can be used in smooth running of the firm.
3. Management Efficiencies: vertical merger can leads to reduction in the cost and running of executives, such that, the inefficient personnels are removed and at the same time, increase the overall operations and commun of the excutives.
Answer:
Option (B) is correct.
Explanation:
Expected EPS1 = $3.50
Payout ratio = 65%
Expected dividend,
D1 = EPS × Payout ratio
= $3.50 × 65%
= $2.275
Current stock price = $32.50
Expected constant dividend growth rate, g = 6.00%
Flotation cost, F = 5.00%
Therefore, the Cost of equity from new common stock:
= D1 ÷ [P0 × (1 - F)] + g
= $2.275 ÷ [$32.50 × (1 - 0.05)] + 0.06
= 0.07368 + 0.06
= 0.0737 + 0.06
= 0.1337
= 13.37%