Answer:
d. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan
Explanation:
interests paid to debt holders = $13,500,000 x 10% = $1,350,000
generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).
under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.
under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500
Answer:
i think it's A grace period
hope that helps if not i can change it
Answer:
$35,400
Explanation:
The computation of the increase in sales is shown below:
The Total sales value is
= Number of units sold × selling price per unit
= 2,950 units × $40 per unit
= $118,000
Now if the contribution margin increases by 30, so ultimately the sales is also increased by 30%
Therefore, the increase in sales is
= $118,000 × 30%
= $35,400
Answer:
2.46
Explanation:
Given:
Student tuition at ABC University per semester credit hour = $250
Average class size = 30
Labor costs per class = $3,000
materials costs per student per class = $10
overhead costs per class = $15,000
a) Now,
The multifactor productivity ratio = 
also,
Input = Labor costs + Total materials costs + Total overhead costs
or
Input = $3,000 + ( $10 × 30 ) + $15,000 = $18,300
And,
Output
= Average class size × credit hour × ( Student tuition + state supplements )
= 30 × 3 × ( $250 + $250)
= $45,000
Therefore,
The multifactor productivity ratio = 
= 2.46
Answer:
The presentation suggest that you should do all of the above.
Explanation:
