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Kazeer [188]
3 years ago
10

Alpha Company is looking at two different capital​ structures, one an​ all-equity firm and the other a levered firm with ​$2.52

million of debt financing at 14​% interest. The​ all-equity firm will have a value of ​$4.2 million and 420 comma 000 shares outstanding. The levered firm will have 168 comma 000 shares outstanding.a.  Find the​ break-even EBIT for Alpha Company using EPS if there are no corporate taxes.b.  Find the​ break-even EBIT for Alpha Company using EPS if the corporate tax rate is 35​%.c.  What do you notice about these two​ break-even EBITs for Alpha​ Company?
Business
1 answer:
horrorfan [7]3 years ago
4 0
Look on jiskha you will find your answer I promise
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Suppose that American firms become more optimistic and, for any given interest rate, decide to increase investment expenditure t
sladkih [1.3K]

Answer:

Following are the response to the given question:

Explanation:

Investing price falls as companies become increasingly negative about investment. Lowering prices for capital will shift the expenditure curve. When total expenditures drop, the IS curve moves to the left. It will lead to a decline in productivity and interest rates in the context of the IS-LM model. Next, consider how the current account will operate (which is the trade balance of the nation). This is what we're seeing as just a paradigm for just a real balance of currency fluctuations. The S-I line swings from S-I1 to S-I2 as expenditures decline from I1 to I2. The currency rate is down and private consumption has risen. Its idea is that even the currency is little valuable as exchange rates decline. Exports to the rest of the world are thus cheaper. Foreign exchange is appreciated as well as the domestic market needs costlier goods. Exports will therefore decrease. Export growth and import reductions are going to improve the trade balance. It will boost the bank account.

5 0
3 years ago
douglas pays selena $43,300 for her 30% interest in a partnership with net assets of $127,900. following this transaction, dougl
Katarina [22]

Selena receives $43,300 from Douglas for her 30% stake in a partnership with $127,900 in net assets. After this transaction, the capital account of Douglas should have a account balance of $38,370.

Douglas's Capital account balance

= Net assets x30%

= $127,900 x 30%

= $31,875

Therefore, Douglas's capital account should have a credit balance of $38,370

A financial repository's account balance represents the amount of money there is at the end of the current accounting period. It is the sum net assets of the balance carried over from the previous month and the net difference between the credits and debits that have been recorded during any given accounting cycle.

The amount due or the net debt may be shown in an account balance. The former is frequently depicted in financial accounts that include net assets recurring bills, like those for utilities or gym memberships. The latter, on the other hand, is reflected in accounts with negative cash balances, such as bank overdrafts.

Learn more about account balance here

brainly.com/question/28699225

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4 0
2 years ago
A(n) ________ performs and records the daily activities of a firm necessary to conduct business.
gtnhenbr [62]

Answer: Transaction processing systems

Explanation:

The transactional processing system is one of the type of information system in which the we managing all the business transaction ad the collection of the data by using the efficient software system.

 It is also known as the real processing system that helps in maintain the reliability, consistency and also the performance of the system.

The transaction processing system is the combination of hardware and the software that efficiently manage the day activities in an organization to conduct the business.  

 Therefore, Transaction processing system is the correct answer.

6 0
3 years ago
The average size of farms in the united States increased from 100 acres in 1920 to 700 acres in 1980.Let be the average size x y
Andre45 [30]

Answer:

1950

Explanation:

8 0
3 years ago
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4) When do credit cards charge interest? Do you pay interest on everything you buy
posledela

Answer:

If you dont pay your balance , Yes you have to pay interest on everything you buy on your card because that is money from the bank so you have to pay your balance for them to get there money back.

Explanation:

6 0
3 years ago
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