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
Alenkinab [10]
4 years ago
8

White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $475,000. To do so

, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that White Lion expects to earn on its project (net of its flotation costs) is:___________.
Business
1 answer:
Dmitriy789 [7]4 years ago
4 0

Answer:

22.81%

Explanation:

The computation of the rate of return is shown below:

= (cash inflow ÷ total cost) - 1

where,

Cash inflow is $595,000

And, the total cost is

= $475,000 + $475,000 × 2%

= $475,000 + $9,500

= $484,500

So, the rate of return is

= ($595,000 ÷ $484,500) - 1

= 22.81%

Hence, the rate of return is 22.81%

Basically we applied the above formulas

You might be interested in
Bài 1
Lerok [7]

Answer: sorry hvfhbhdbhdbhb

Explanation:

6 0
2 years ago
What does a speech-language pathologist do??
Nezavi [6.7K]
<span>Speech-language pathologists must be able to listen to and communicate with their patient in order to determine the right course of treatment.
             
                                                    Answer: </span>
<span> A Speech-language pathologists must be able to listen to and communicate with their patient in order to determine the right course of treatment.</span>
7 0
3 years ago
Generally, a high ___________ ratio could lead investors and creditors to view the company as being very risky debt to owners' e
Ipatiy [6.2K]

High <u>debt to owner's equity ratio. </u>

This is total liabilities divided by total assets and shows a company's financial leverage, also known as their ability to handle current and future financial obligations.

6 0
3 years ago
Read 2 more answers
The estimated amount of depreciation on equipment for the current year is $8,200. Journalize the adjusting entry to record the d
olchik [2.2K]

Answer:

Dr.    Depreciation Expense Account $8,200

Cr.    Accumulated Depreciation         $8,200

Explanation:

Depreciation is the expense that is charged from the fixed assets to the revenue. All the depreciation of the fixed asset are accumulated in a account of accumulated depreciation, which is contra asset account. the assets are reported on the balance sheet net of accumulated depreciation.

6 0
4 years ago
As a person becomes an expert in an area, he or she will begin to ________ to help organize the information.
Katarina [22]

A. Use larger chunks

8 0
3 years ago
Other questions:
  • At​ UPS, business was strong but profits were​ down, leading managers to look for ways to increase profits from existing operati
    10·1 answer
  • Many years ago, a father opened a UGMA account for his young son. The son has just turned 17 and the father believes that the so
    11·1 answer
  • Roberta deposited 3,116.92 into savings account with an inteest rate of 3.9% compounded quarterly. About how long will it take f
    14·1 answer
  • Concord Corporation makes and sells widgets. The company is in the process of preparing its selling and administrative expense b
    6·1 answer
  • Do mountains last forever?
    14·2 answers
  • Unloading the dishwasher is an example of a _____.
    8·1 answer
  • Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sh
    9·1 answer
  • Raul owned a small graphic design business. He used 3-D software and computers to create animations for his clients. Which facto
    8·1 answer
  • What is the present value of $500 invested each year for 10 years at a rate of 5%?​
    10·1 answer
  • Shoppers drug mart often runs newspaper ads that contain a coupon. This is considered what type of advertising?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!