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Law Incorporation [45]
3 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]3 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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Public companies under the jurisdiction of the Securities and Exchange Commission are required by law to hire a certified public
skad [1K]

Answer:

True

Explanation:

In case of the public companies who are in control of the Securities and Exchange Commission have a requirement to hire an independent auditor we can say Chartered Accountant (CAs) who give their views upon the financial statements that are published whether they are in compliance of Generally Accepted Accounting Principles (GAAP).

Based on this, the independent auditor give the qualified or unqualified opinion

Therefore, the given statement is true

7 0
4 years ago
The revenue, in millionsmillions of dollars, for a company in year tt is given by the function: r(t)=15e0.19t,0≤t≤15 r(t)=15e0.1
Maslowich
The net profit of the company in this case is given by the subtraction of the income minus the costs.
 We have then:
 b (t) = r (t) - c (t)
 b (t) = 15 * e ^ (0.19 * t) - 12 * e ^ (- 0.03 * t).
 We must determine the number of years.
 from january 1st in the year 2000 until january 1st in the year 2007:
 t = 2007-2000 = 7.
 We have then evaluating t = 7 in the function:
 b (7) = 15 * e ^ (0.19 * 7) - 12 * e ^ (- 0.03 * 7).
 b (7) = 46.99 millions of dollars
 answer:
 the net profit was 46.99 millions of dollars
5 0
3 years ago
Nathaniel is a manager at Mauve Inc He trains his team members to communicate effectively with customers in order to generate sa
laila [671]

Answer:

The correct answer is A) The middle-of-the-road style .

Explanation:

This leadership is characterized by the balanced behavior of managers where a balance is maintained between the operational and organizational function along with the motivation of the entire work group. In this type of leadership, the manager is very clear about his role in terms of work to achieve adequate behavior, but at the same time he considers that the group environment is important to achieve the proposed objectives and for this reason he also cares about the state of encouragement of employees.

3 0
3 years ago
In the economy of​ Cycladia, the total unemployment rate is equal to 11.0 ​percent, the structural unemployment rate is 2.42.4 ​
damaskus [11]

Answer:

The cyclical unemployment rate is 4.2%

Explanation:

There is a natural unemployment rate which contains every unemployment rate which is cyclical unemployment plus structural unemployment plus frictional unemployment, so then in order to get cyclical unemployment we will use the below formula:

natural unemployment = Frictional unemployment + Cyclical unemployment +structural unemployment

therefore we are given the natural unemployment rate of 11%

Frictional Unemployment Rate of 4.4%

Structural unemployment rate of 2.4%

then we substitute on the above mentioned formula and solve for cyclical unemployment

11% =4.4% + Cyclical Unemployment Rate+ 2.4% then we transpose and solve for cyclical unemployment rate

11% - 4.4% -2.4% = Cyclical Unemployment Rate

4.2 % = Cyclical unemployment rate

this unemployment rate goes with the business cycle of any business in which if there is a recession in an economy it is accounted for even if there is economic growth it is accounted for.

4 0
3 years ago
The payments a business makes for investing in capital expenses are known as : A) profits
blsea [12.9K]
The answer for this question is A.
7 0
3 years ago
Read 2 more answers
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