$788 to me and my brother in law I come see him
Answer:
$751,562.50 and $837,203.125
Explanation:
The formula to compute the value of the firm under the MM proposition approach is shown below:
In first case
= {EBIT × ( 1 - tax rate)} ÷ WACC
= {$185,000 × ( 1 - 0.35)} ÷ 16%
= $120,250 ÷ 16%
= $751,562.50
Since no debt is there which means the firm is unlevered firm and computation is done accordingly.
All other information which is given is not relevant. Hence, ignored it
In second case
= {EBT× ( 1 - tax rate)} ÷ WACC
= {$172,850 × ( 1 - 0.35)} ÷ 16%
= $112,352.50 ÷ 16%
= $702,203.125
EBT = $185,000 - $135,000 × 9%
= $185,000 - $12,150
= $172,850
So, the value of firm would be
= $702,203.125 + $135,000
= $837,203.125
<u>These reasons include</u>:-
- Increased job satisfaction and morale among employees.
- Increased employee motivation.
- Increased efficiencies in processes, resulting in financial gain.
- Increased capacity to adopt new technologies and methods.
- Increased innovation in strategies and products.
- Reduced employee turnover.
Answer:
1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)
b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)
c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)
2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.
3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.
4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.
5. decrease the supply for loanable funds. If they are consuming more, they are saving less.
6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.
Hope this was helpful!
Explanation:
Finance is the functional area of business that is responsible for finding the best sources of funds and the best ways to use them. So the correct option is (d).
What is a Functional area?
Functional area describes a way of segmenting an organization into distinct parts, each of which will act as a fully functional unit carrying out the specified functions. This means that a segmented unit like this accomplishes a specific organizational goal that can be distinguished from the role of other segments. The human resource department, a division within the organization that is divided from other functional areas by the particular obligations that are distinctive to just the human resource department, is an example of such a division within an organization.
Therefore correct answer is (d).
Learn more about Functional area here:
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