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blagie [28]
4 years ago
9

Holly's is currently an all-equity firm that has 12,000 shares of stock outstanding at a market price of $36 a share. The firm h

as decided to leverage its operations by issuing $120,000 of debt at an interest rate of 7.2 percent. This new debt will be used to repurchase shares of the outstanding stock. The restructuring is expected to increase the earnings per share. What is the minimum level of earnings before interest and taxes that the firm is expecting? Ignore taxes.$31,104$40,516$42,000$37,141$45,020
Business
1 answer:
vagabundo [1.1K]4 years ago
8 0

Answer:

$31,104

Explanation:

EBIT / 12,000

= [EBIT - ($120,000 × .072)] / [12,000 - ($120,000 / $36)]

EBIT = $31,104

Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104

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Is water wet or....?
amm1812

Answer:

water is a substance made up of two compound one is hydrogen and second is oxygen

the chemical formula for water is ( H2O )

Explanation:

hope it helps

5 0
3 years ago
Read 2 more answers
The inventory costing method that reports the earliest costs in ending inventory is:_______
nikdorinn [45]

Answer:

a. LIFO.

Explanation:

The LIFO method refers to an inventory method that means the item which is last purchased should be sold first during the period of time. So in this inventory method the earliest cost in the closing inventory should be recorded

Therefore the given situation, the correct option is a.

And, the other options are wrong

4 0
3 years ago
Kincaid Company provided consulting services of $2,500 to a customer who paid $1,300 and promised to pay the remainder next mont
Anon25 [30]

Answer:

B. Cash 1,300  Dr, Accounts Receivable 1,200 Dr, Consulting Revenue 2,500 Cr

Explanation:

                             Kincaid Company

                                  Journal Entry

Date      Description                             Debit       Credit

              Cash                                      $1,300

                     <em>Accounts Receivable                      $1,200</em>

                     Consulting Revenue                        $2,500

6 0
3 years ago
Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,00
lana [24]

Answer:

$2,100

Explanation:

Particulars                     Fair market value      Basis        Differences

Inventory                             $60,000              $30,000       $30,000

Account receivables           $40,000              $40,000       $0

Equipment                           $60,000              $80,000      <u> ($20,000)</u>

Taxable gain                                                                           $10,000

Tax rate                                                                                   <u>   21%    </u>

Built in gains tax                                                                     <u>$2,100  </u>

So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.

3 0
3 years ago
Who among the following is a member of a utilitarian organization: a) Angela, who works as a lawyer at a prestigious law firm an
dimaraw [331]

Of the options given, the most likely member of a utilitarian organization is<u> a. </u><u>Angela</u><u>, who works as a </u><u>lawyer </u><u>at a </u><u>prestigious law firm </u><u>and </u><u>earns $60,000 annually.</u>

A utilitarian organization is one where:

  • Employees receive some sort of compensation for their work
  • Employees are usually contracted to a company to provide a certain service

Angela is receiving a compensation of $60,000 annually and is a lawyer which means that they are probably contracted to the law firm.

We can therefore conclude that Angela is working for a utilitarian organization based on the fact that there is compensation and contract.

<em>Find out more at brainly.com/question/13956837. </em>

7 0
3 years ago
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