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Law Incorporation [45]
2 years ago
7

Copybold Corporation is a start-up company that has a capital structure with a debt/assets ratio equal to 0.75. Copybold has no

preferred stock. There are two possible scenarios with respect to the firm's operations : Feast or Famine. The Feast scenario has a 60 percent probability of occurring, and the forecast earnings before interest and taxes (EBIT) in this scenario is $60,000. The Famine scenario has a 40 percent chance of occurring, and the EBIT is expected to be $20,000. Further, the firm's cost of debt is 12 percent. The firm has $400,000 in total assets, and its marginal tax rate is 40 percent. The company has 10,000 shares of stock outstanding. What is the difference between the earnings per share (EPS) forecasts for the Feast scenario and the Famine scenario
Business
1 answer:
galben [10]2 years ago
8 0

Answer:

The value of the difference between the earnings per share (EPS) forecasts for Feast and Famine is $2.40

Explanation:

The solution is as evident in the attached Excel Sheet. In the excel sheet the formulas are used which are also given in the second sheet.

For the data values from the question are used.

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The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Hasbro, Inc., a leadi
vichka [17]

Answer:

Hasbro, Inc.

Balance Sheet

Assets

Current Assets:

Cash and cash equivalents                     $893  

Accounts receivable                      1,111

Allowance for doubtful accounts   (16)  1,095

Inventories                                                340

Prepaid expenses and

 other current assets                              392

Total current assets                           $2,720

Property, Plant, and Equipment (net):

Buildings and improvements              $ 234

Land and improvements                            7

Machinery, equipment, and software   504

Other noncurrent assets                       658  

Accumulated depreciation                   (509)

Property, Plant, and Equipment (net) $894

Other Assets:

Goodwill                                             $ 593

Other intangibles               1,123

Accumulated amortization

(other intangibles)              798          325

Other assets                                      $918

Total assets                                   $4,532

Explanation:

a) Data and Calculations:

Current Assets:

Cash and cash equivalents                     $893  

Accounts receivable                      1,111

Allowance for doubtful accounts   (16)  1,095

Inventories                                                340

Prepaid expenses and

 other current assets                              392

Total current assets                           $2,720

Property, Plant, and Equipment (net):

Buildings and improvements              $ 234

Land and improvements                            7

Machinery, equipment, and software   504

Other noncurrent assets                       658  

Accumulated depreciation                   (509)

Property, Plant, and Equipment (net) $894

Other Assets:

Goodwill                                             $ 593

Other intangibles               1,123

Accumulated amortization

(other intangibles)              798          325

Other assets                                      $918

8 0
3 years ago
Assume you’ve got terrific credit: What would be your likely APR for purchases or balance transfers?
Zielflug [23.3K]

Answer:

The APR stands for the annual percentage rate, and you can hope for a credit card with the least APR since you have good credit. It is the interest rate that is charged annually over the credit you spend. And the average credit card APR is 15.09, as mentioned in the February report. And on account that assesses interest, on average the APR is 16.91. And hence an APR below the 17.57, can be considered as a good one. And hence, this can be your APR for purchases or the balance transfers since you have a terrific credit.

Explanation:

Please check the answer section.

4 0
3 years ago
If Congress passes a plan to cut the national debt in half, then:
Alenkasestr [34]

Answer:

3) AD shifts right and output would decrease.

Explanation:

Aggregate demand (AD) is the total number of goods demanded in an economy in a period of time.

If Congress decides to cut the National debt (or accumulated debt of the government) by half, this will make interest rates lower and will encourage investment from the private sector.

The shifting to the right occurs when these components; consumption spending and investment spending increases due to cut in National debt.

The AD curve will shift back to the left as these components decreases.

5 0
3 years ago
Which type of organizational purchase situation is characterized by high purchase importance and complexity, a large and evolvin
yaroslaw [1]

Answer:

New Task

Explanation:

The new task is a <em>company purchasing scenario where the purchaser initially buys  a products or services for the first time with no testing experience. </em>

An comprehensive search is performed to assess alternatives, however.  The higher the price or risk concerned, the more decision-making participants '  knowledge is required.  

For instance, an organization that purchases raw resources for the first time  to produce devices.

7 0
3 years ago
Which of these resources do
xeze [42]

Answer:

B. Capital

Explanation:

It would be capital because households pay for the certain goods or services a business has to offer, therefore giving them money. The word "Capital" means funds/money, and since the households are giving the businesses money, they care supplying capitals.

4 0
3 years ago
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