Answer: $690,044
Explanation:
First calculate WACC.
Total capital = 10 + 8 = $18 million
WACC = (Weight of debt * after-tax cost of debt) + (weight of equity * cost of equity)
= (8/18 * 3%) + (10/18 * 15%)
= 9.67%
Using the WACC, find the present value of the cashflows for the next 5 years. This will be an annuity.
= 180,500 * (1 - (1 + r) ^-n)/r
= 180,500 * ( 1 - ( 1 + 9.67%) ^ -5)/9.67%
= $690,044.67
= $690,044
They should pay no more than this present value.
Answer:
The proper adjusting journal entry at January 31
would: a) include a credit to Supplies for $400
Explanation:
On January 7, Bravo purchased supplies on
account for $1,000, and recorded this purchase to
the Supplies account by the entry:
Debit Supplies account $1,000
Credit Accounts Payable $1,000
At the end of January, Bravo had $600 of these
supplies still on hand. Supplies were used in
January = $1,000 - $600 = $400
The adjusting journal entry at January 31:
Debit Supplies Expense $400
Credit Supplies account $400
Answer:
equity, freedom, security, efficiency, growth
Explanation:
The economic goals include:
1. Equity: occurs in an economy when income and wealth are fairly distributed within a society.
2. Efficiency (efficiency freedom): is achieved when society is able to get the greatest amount of satisfaction from available resources in an economy
3. Economic growth: when there is an increase in the economy's ability to produce goods and services, often indicated by measuring the growth rate of production.
The other economic goals are:
Economic Stability, balance of payment, Price Stability or Controlling Inflation and Full Employment.
Answer:
Both statements I and III are correct.
Explanation:
<u>1.Construct a zero investment portfolio that will yield a sure profit
</u>
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<u>3.Make simultaneous trades in two markets without any net investments</u>
Answer:
Explanation:
Based on the information provided it can be said that the best advice would be to mention that an in-depth analysis of the countries in which the firm is considering exporting to needs be done. This is because every country has unique differences in various areas such as its laws, culture, stability, etc. This information can drastically change the odds in regards to being profitable in that specific area, and can therefore, change the decision of whether to export to that country or not.
