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Mashcka [7]
3 years ago
11

McMahon Inc. reported the following on the company's statement of cash flows in 2016 and 2015:

Business
1 answer:
podryga [215]3 years ago
3 0

Answer:

$137,200; $103,600

Explanation:

In 2015:

Free cash flow:

= Net cash flow from operating activity - Capital expenditure

= $294,000 - (70% × $224,000)

= $294,000 - $156,800

= $137,200

In 2016:

Free cash flow:

= Net cash flow from operating activity - Capital expenditure

= $280,000 - (70% × $252,000)

= $280,000 - $176,400

= $103,600

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If the insurer takes the policy as applied for the coverage will take effect when the conditions of the receipt are met and from the date of the application or medical exam. The two types of conditional receipts are insurability and approval. The insurability receipt provides interim coverage as the applicant is insurable while the approval receipt will not begin until the insurer will approve the claim. However, conditional receipts will provide the coverage if the applicant is insurable as applied for and coverage will not be delivered until the applicant accepts the coverage if the insurer concerns a counter-offer because the applicant is substandard risk. 
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3 years ago
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi
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Answer:

a. Compute the cost of retained earnings (Ke)

$60 = $3 / (Ke - 8%)

Ke - 8% = $3 / $60 = 5%

Ke = 13%

b. If a $5 flotation cost is involved, compute the cost of new common stock (Kn).

$60 (1 - $5/$60) = $3 / (Kn - 8%)

$55 = $3 / (Kn - 8%)

Kn - 8% = $3 / $55 = 5.45%

Kn = 13.45%

Flotation costs reduce the amount of money that the company receives for every new stock that it issues, therefore, it increases the cost of new stocks.

6 0
3 years ago
Your friend is nearing graduation and nervous about living on his own since he grew up in the same town where all his family liv
dezoksy [38]
I think d would be the best answer
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3 years ago
Of the types of U.S. compliance laws, there are a number of laws that are designed to provide confidence in the markets. _______
Gala2k [10]

Answer:

The correct word for the blank space is: Shareholders.

Explanation:

A Shareholder is a person company or other entity that owns at least one share of company stock. Another word for <em>shareholder </em>is <em>stockholder</em>. When a shareholder buys a company stock provide them with funds to run and grow a business. The government is in charge of providing regulations to promote a safe environment in the market to promote investments from stockholders.

5 0
3 years ago
If Norman invested $100,000 for 3 years at 12%, how much interest on interest will he earn? (Do not round intermediate calculati
Scrat [10]

Answer:

$224.64

Explanation:

Norman invested $100,000, Interest rate 12%, Period 3 years

In compound account, the interest earned by the end of the year qualifies to earn interest. At the end of the period, the interest is added to the principal and earns interest as well.

The interest that Norman earned in the first year was added to the principal amount in the second year, meaning that interest earned some interest in the second and their year of investment. The same happened to the interest earned in the second year.

To calculate the interest earned by the interest, we take the amount after three years, minus the principal amount, minus the simple interest for the three years.

Interest on interest will be the Future value- principal amount- Simple interest.

The amount after three is the compounded value after three years.

compound amount formula FV=  PV × (1+r)n

Future value  of $100,00 @ 12% after 3 years will be

=5000 x (1+12/100) 3

=5000 x (1+0.12)3

=5000 X (1.12)3

=5000 x 1.404928

=7,024.64

The simple interest earned in the three years equal

Interest = principal x rate x duration

12/100 x 5000 x 3

=0.12 x 5000 x 3

=600 x 3

=$1800

Interest on interest will be :

=$7,024.64 - $5,000- $1,800

=$224.64

7 0
3 years ago
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