Answer:
<u>A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).</u>
<u>Explanation</u>:
Remember, the key word here is about whether diversification into a particular industry would likely increase shareholders value.
Thus, any company wanting to test this out would consider whether conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).
This option is better because improved profits implies better shareholder value.
Answer:
Opportunity cost is giving up the working at Mc Donald's
Explanation:
Opportunity cost is the term which is stated as the profit, value of something or the benefit which is given up for something in order to acquire or accomplish something else.
In this case, Alexandra wants to work at Mc D and play soccer. So, she decided to play soccer. Therefore, the opportunity cost is working at Mc Donald in order to play.
Answer:
$99.09
Explanation:
Calculation for What is Tricki's expected price when it begins trading ex-rights
Using this formula
Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]
Let plug in the formula
Expected price=$100-[($100-$90)÷(10+1)]
Expected price=$100-($10÷11)
Expected price=$100-$0.91
Expected price=$99.09
Therefore Tricki's expected price when it begins trading ex-rights will be $99.09
Answer:
<u>Maximum Amount that can be loanded = $4139619</u>
Explanation:
DSCR = NOI / Debt Service
Debt Service = Principal + Interest
NOI = $ 500000
Debt Service = 500000 / 125 % = $ 400,000
The loan would be ammortized monthly over a period of 25 years.
Monthly Payment or EMI
E = P×r×(1 + r)n/ ((1 + r)n - 1)
12E = 400,000 = [P×r×(1 + r)n/ ((1 + r)n - 1)] * 12
or, P = 400000 / 0.0966272500154557 = $4139619
<u>Maximum Amount that can be loanded = $4139619</u>
Answer: 2.72%
Explanation:
An annuity is a series of payments that is made at equal intervals. Examples are monthly home mortgage payments, regular deposits to a savings account, pension payments.
Number of payment period (NPER) = 12 years
Payment per period (PMT) = $15000
Amount needed, PV = $156000
The formula for an annuity is calculated as:
P = PMT x ((1 – (1 / (1 + r) ^ -n)) / r)
= Rate(12,15000,-156000,1)
Rate = 2.72%
