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kotegsom [21]
3 years ago
6

Interior Design Group is an all equity firm that has 40,000 shares of stock outstanding. The company has decided to borrow $1 mi

llion to buy out the shares of a deceased stockholder who holds 2,500 shares.
What is the total value of this firm if you ignore taxes?
A. $15.5 million
B. $15.6 million
C. $16.0 million
D. $16.8 million
E. $17.2 million
Business
1 answer:
AleksandrR [38]3 years ago
3 0

Answer:

The total value of this firm if you ignore taxes is $16 million.

Explanation:

Considering that the company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,500 shares, hence to calculate the total value of the firm we have to first make the following calculation:

$1,000,000÷2,500= 400

Hence, Total value of the firm= 400×40,000 shares of stock outstanding

                                                 = $16 million is the total value of this firm if you ignore taxes.

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Which of the following scenarios most accurately reflects the concept of scarcity?
mojhsa [17]

Answer:

2. Brett is a farmer with an open field on which he can plant either soybeans or corn. 

Explanation:

Scarcity in economics means the resources available to meet man's needs are limited or scarce.

In brett's case, land is limited, so he has to choose between planting soybeans and corn.

I hope my answer helps you

3 0
3 years ago
Diversification merits strong consideration whenever a single-business company A. has integrated backward and forward as far as
Gennadij [26K]

Answer:

The correct answer is B.

Explanation:

Diversification is a business strategy in which a company enters a field or market different from its core activity. It is a risk management strategy that mixes a wide variety of investments within a portfolio by allocating capital in a way that reduces the exposure to any one particular asset or risk.

Diversification merits strong consideration whenever a single-business company is faced with diminishing market opportunities and stagnating sales in its principal business.

3 0
3 years ago
Crane Company has a unit selling price of $500, variable costs per unit of $260, and fixed costs of $184,800. Compute the break-
Ostrovityanka [42]

Answer:

Break-even point in units= 770

Explanation:

Giving the following information:

Selling price= $500

Unitary variable cost= $260

Fixed costs= $184,800

<u>To calculate the break-even point in units using the mathematical equation, we need to use the following formula:</u>

<u></u>

Net income= unit contribution margin*x - fixed costs

x= number of units

0= (500 - 260)*x - 184,800

184,800/240 = x

770=x

<u>Now, under the unit contribution margin method:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 184,800/240

Break-even point in units= 770

5 0
3 years ago
At the beginning of 2016, EZ Tech Company's Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful
meriva

Answer:

EZ Tech Company

Journal Entries:

Debit Cash Account $210,000

Credit Sales Revenue $210,000

To record sale of goods for cash.

Debit Accounts Receivable $840,000

Credit Sales Revenue $840,000

To record sale of goods on account.

Debit Cash Account $670,000

Credit Accounts Receivable $670,000

To record the receipt of cash on account.

Debit Uncollectible Expense $4,000

Credit Accounts Receivable $4,000

To record direct write-off of uncollectibles.

Explanation:

a) Accounts Receivable:

Beginning balance $140,000

Sales on credit         840,000

Cash receipts         -670,000

Uncollectible              -4,000

Ending balance    $306,000

b) The direct write-off of the uncollectible accounts could have also been treated through the Allowance for Doubtful Accounts by debiting the account before crediting it with the Uncollectible Expense account.  Since there is no instruction to the contrary, we have used the direct method instead, for simplicity.

3 0
3 years ago
Potential GDP of​ $12 trillion and if real GDP equaled potential​ GDP, the budget deficit would be​ $1 trillion.
Karo-lina-s [1.5K]

Answer:

D. deficit of​ $1 trillion; surplus of​ $4 trillion

Explanation:

If the economy reaches their potential at 12 trillion the government would run a deficit of 1 trilllon which means there is an structural deficit of 1 trillion

As currently there is a surplus of 3 trillion This mean the economy is in a cycle under which there is a surplus of 4 trillion

current budget - structural budget = cyclical

3  - (-1) = 3 + 1 = 4

8 0
3 years ago
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