After-tax net income divided by the average amount invested in a project is the accounting rate of return.
Net Income After Tax (NIAT) is a financial term used to describe a company's profit after all taxes have been paid. Net income after tax represents profit or profit after deducting all expenses from income. Net income is calculated by subtracting all expenses from income.
Net income is usually synonymous with profit as it is the ultimate measure of a company's profitability. Net income is also called net income because it represents the net profit that remains after all expenses and expenses are deducted from the income.
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Answer:
Answer for the question:
Consider Optitron Enterprises, a firm that is currently funded entirely with equity. There are 50 million shares outstanding and each share has a current market value of $15. Eric Fredrickson, the CEO, has considered whether the company should take on some debt, as he has learned in his Executive MBA class that some debt can increase shareholder value. Mr. Fredrickson has estimated that the current risk free rate is 1.9% and the expected return on a broad market portfolio is 9%. The company’s marginal tax rate is 40% and its operating beta (also known as unlevered beta) is 0.75. Mr. Fredrickson has contacted an investment banker who has analyzed the firm’s operational risk and financial condition. The investment banker has provided the following schedule of anticipated debt costs at various levels of debt financing. Optitron would use any proceeds from a debt issue to immediately retire outstanding equity by repurchasing shares, also known as a recapitalization. wd rd 0 0.0% 0.20 6.5% 0.40 7.5% 0.60 8.5% 0.80 9.5% 1. Using the Hamada equation, estimate the firm’s beta at each level of debt. 2. Using the CAPM, estimate the firm’s cost of equity at each level of debt.
is given in the attachment.
Explanation:
Answer:
There are three types of innovation.
Product, Process and business Model.
The company Amazon is one of the leading online business in the world. It has achieved success through process innovation.
Explanation:
Amazon has created a culture of innovation in its organization. The employee working in the amazon are free to share their innovative ideas and management considers those ideas when making strategic planning of business. This is the reason amazon has been able to launch many different types of technological innovations which provide support to their customers and their shopping experience is comfortable.
True.
This is because managers are responsible for the overall performance of a branch and its personnel. Managers have people under their supervision and any problem that may arise in the course of a business day, they have to deal and solve in as little amount of time as possible.
Answer:
The real estate should charge $1,300 to obtain maximum profit.
Explanation:
We can make K to represent the number of unit apartment occupied.
This means that the total rent the real estate office is getting can be denoted by;
{(550 + 25(80 - K)} K - 50K
Maximizing the above equation, we have;
y = 550K + 2,000K - 25K^2 - 50K
Collect like terms
= 2,500K - 25K^2
y' = (2,500K - 25K^2)' = 2,500 - 50K
y = 0
2,500 - 50K = 0
2,500 = 50K
K= 50
Rent is therefore;
Rent = 550 + (80 - K)25, where K is 50
= 550 + (80 - 50)25
= 550 + (30)25
= 550 + 750
= $1,300
