Answer:
$300,000
Explanation:
The computation of the operating cash flow is shown below:
But before that EBIT should be determined
Sales $ 2,000,000.00
Less : Cost of Goods Sold $1,200,000.00
Gross Profit $800,000.00
Less: selling and general administrative expenses $500,000.00
Less: Depreciation expense $900,000.00
EBIT i.e. Operating Income/(Loss) $(600,000.00)
Tax at 21% $(126,000.00)
Since it is negative so the tax loss would not be determined
Now Operating Cash flow
= EBIT × (1 -T) + Depreciation expense - Chane in Working Capital
= EBIT + Depreciation expense
= -$600,000 + $900,000
= $300,000
Answer:
Risk Premium is 10%
Explanation:
Government treasuries represent risk free rate of return.
[tex]Risk Premium=R_{m}-R_{f}/tex] ,
where, [tex]R_{f} = Risk\ Free\ Rate\ Of\ Return/[tex]
[tex]R_{m} = Market\ Rate\ Of\ Return/[tex]
Risk Premium = 15 - 5 = 10%
Risk Premium is defined as return earned on market portfolio in excess of rate of return earned on risk free assets such as government treasury bonds.
So, Risk Premium refers to the compensation an investor expects to earn for assuming higher risk by investing in market portfolio instead of investing his money in risk free class of assets.
Answer:
<u>Opportunity</u>
Explanation:
Corey notices a "backlash" against health food among people who eat out. He decides to open a restaurant that stresses "good home cooking" heavy with gravies , bread , oils , etc. Corey has identified and is trying to capitalize on an opportunity in the market environment.
O<em>pportunities are external thin</em>g .<em> You have to look for them , it is not something which come to you by it own .Instead you have to work hard for </em>it.
You should have the full knowledge about the external environment . You should have the knowledge about the market about people and should know about the taste and preferences of the people.
There is always an opportunities you just need to identify it . Here <em>Corey identify the need and he have the means to fulfill that need which als</em>o <em>essential</em> . Only identifying the opportunities is not the only thing but also you have the means to fulfill them . After that you can gain benefits.
