Answer:
c) 8.44x
Explanation:
Total current assets = cash + account receivable + inventory
⇔ $79,000 = $35,550 + $19,750 + Inventory
⇒ Inventory = $79,000 - $35,550 - $19,750 = $23,700
The inventory circles based on annual sales = Sales/ inventory = $200,000/ $23,700 = 8.44
Answer: 5 Households
Explanation:
The y-axis shows the number of households using a certain number of TV sets while the x-axis shows the number of TV sets that households own.
There are only 5 households that own 5 televisions sets. This is the lowest number of households that own the same number of television sets and this makes sense because owning 5 television sets in a single household is not something that is usually seen.
Answer:
$12.49
Explanation:
The computation of the expected current price is shown below:
But before that first we have to determine the current firm value which is
Current firm value = ($86 million ×1.10^1) ÷ 1.11^1 + ($86 million × 1.10^2) ÷ 1.11^2 + {($86 million × 1.10^2 × 1.04) ÷ (0.11 - 0.04)} ÷ 1.11^2
= $1,424.48 million
Now
Expected current share price is
= ($1,424.48 - $275 million + $100 million) ÷ 100 million shares outstanding
= $12.49
Answer:
40 students
Explanation:
The cost of the bus is $480
For x students, the cost of each ticket will be 35 - 0.30x
The total cost of the tickets for x students will be x(35 - 0.30x)
To find the number of students that will make the cost per student equal to $33, we solve for x:
<u>480+ x(35 - 0.30x)</u> =35
x
480+ x(35 - 0.30x<u>)</u> = 35x
480 + 35x - 0.30x² = 35x
480 = 0.30x²
1,600 = x²
40 = x
The cost per student will be $35 if the number of students is 40; it will be less than $35 if the number of students is greater than 40.
Answer:
Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.
This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.
Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.
The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.
Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .
Commons stock costs is the required return on the retained earnings of a company.
WACC ⇒ D. the average cost of raising new financing.
Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.
