Answer: initially Sam gross profit would drop. But overtime when he starts gaining customers in his new branch added to the already existing customers in his old branch there would a very large gross profit increase.
Explanation: Gross profit is the percentage of revenue a company retains after accounting for cost of goods/services.
In this case payment of staffs in both the old and new branches would be accounted for, with the new branch still very much dependent on the old branch for payment of staff until it can get its own customers, only then would the new branch be able to be self reliant and also make profit.
Answer:
$66,909
Explanation:
Calculation for How much must each deposit be (rounded to the nearest $10)?
First step is to calculate the PV using financial y
N= 25
PMT= 200,000
FV= 0
i/y= 9
PV= ?
Hence,
PV= 2,141,322
Now let How much must each deposit be by finding the PMT using financial calculator
N= 15
FV= 2,141,322
PV=0
i/y= 9
PMT= ?
Hence,
PMT=$66,909
Therefore How much must each deposit be is $66,909
Answer:
5.925%
Explanation:
For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment
Given that,
Present value = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% = $80
NPER = 20 year - 1 year = 19 year
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 7.50%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.50% × ( 1 - 0.21)
= 5.925%
