Answer:
The cost of equity for ABC is 11.74 percent and for XYZ it is 14.47 percent.
Explanation:
a. For ABC
ABC cost of equity = Earning before interest and tax (EBIT) / Equity = $62,222 / $530,000 = 0.1174, or 11.74%
b. For XYZ
Perpetual debt = $530,000 - $310,000 = $220,000
Interest on debt = $220,000 * 7.9% = $17,380
Earning after interest = $62,222 - $17,380 = $44,842
XYZ cost of equity = $44,842 / $310,000 = 0.1447, or 14.47%
Answer:
a. Total cash receipts are:
January = $332,000
February = $372,000
March = $386,000
b. Total cash payments are:
January = $335,400
February = $361,000
March = $356,500
c. Ending cash balances are:
January = $84,600
February = $95,600
March = $125,100
Explanation:
Note: The part of the data in the question are merged together. They are therefore sorted before answering the question as follows:
<u> Actual </u> <u> Forecast </u> <u>Additional Information</u>
November $280,000 January $360,000 April forecast $380,000
December 300,000 February 400,000
March 390,000
Note: See the attached excel files for the schedules receipt, schedule of payments and the cash budget.
Answer:
It has an exact amount to trade while goods and barter vary in worth, and can be debatied on how much they are worth.
Explanation:
i not sure but cyclical makes more sense.