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Kipish [7]
2 years ago
15

Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would cons

ist of 40,000 shares of stock. The levered capital structure would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. What is the break-even level of earnings before interest and taxes between these two options
Business
1 answer:
ryzh [129]2 years ago
4 0

Answer:

$52,267

Explanation:

Calculation to determine the break-even level of earnings before interest and taxes between these two options

EBIT/40,000 = [EBIT- ($280,000 ×0.07)]/25,000

EBIT/40,000 = [EBIT - ($19,600)]/25,000

Cross multiply

25,000EBIT=40,000(EBIT-19,600)

25,000EBIT=40,000EBIT-784,000,000

EBIT = $52,267

Therefore the break-even level of earnings before interest and taxes between these two options is $52,267

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New Jersey raises its minimum wage while neighboring Pennsylvania does not. Economists compared the labor market in both states
ollegr [7]

Answer:

Natural experiment

Explanation:

Natural experiment is the study of empirical, which comprise of the individuals who are exposed to the control as well as the conditions of the experimental , which are determined or evaluated by the nature or through other kinds of factors that are outside the person control.

The procedure of governing the exposures resemble the random experiment. This experiment are not controllable and are the observational studies. So, the event is naturally occurring, then it is an example of the natural experiment.

6 0
3 years ago
To make a skirt out of fabric, Connie needs 1 3/4 yards of fabric. If Connie bought 10 1/2 yards of fabric at a sale, how many s
erastovalidia [21]

Answer:

6 skirts

Explanation:

Given

1\ Skirt = 1\frac{3}{4}\ fabric

Required

Number of skirts for 10\frac{1}{2}\ fabric

Represent the required number of skirts by x

<em>To solve for this, we simply divide </em>10\frac{1}{2}<em> by </em>1\frac{3}{4}<em></em>

x = 10\frac{1}{2} / 1\frac{3}{4}

Convert to mixed numbers

x = \frac{21}{2} / \frac{7}{4}

Rewrite as multiplication

x = \frac{21}{2} * \frac{4}{7}

x = \frac{21 * 4}{2 * 7}

x = \frac{84}{14}

x = 6

<em>Hence, she could make 6 skirts</em>

7 0
3 years ago
REALLY EASY QUESTION!!
vladimir2022 [97]

Answer:tryst me its G

Explanation: I know trust me

5 0
3 years ago
Read 2 more answers
Requirement 1. Compute the profit margin ratio for Achieve​'s Companies for 2018. Begin by selecting the formula to calculate Ac
tamaranim1 [39]

Given Information:

                         Achieve​'s Companies Income statement

                           Years ended May 31 , 2018 and 2017    

                                                                         2018                2017

Net sales revenue                                          51,200            50,700

Costs of goods sold                                       20,800           28,600

Interest expense                                              400                  280

All other expenses                                          6,200              7800

Net income                                                      23,800            14,020

Explanation:

(1) Profit Margin Ratio for 2018

Profit Margin Ratio for 2018 = [Net Income / Net Sales Revenue] x 100

= [$23,800 / $51,200] x 100

= 46.5%

(2) Rate of Return on total assets for 2018

Rate of Return on total assets for 2018 = [Net Income / Average Total Assets] x 100

= [$23,800 / {($86,700 + $57,700)/2}] x 100

= [$23,800 / $72,200] x 100

= 33.0%

(3) Asset Turnover Ratio for 2018

Asset Turnover Ratio for 2018 = Net Sales Revenue / Average Total Assets

= $51,200 / $72,200

= 0.71 Times

(4) Rate of return for Common Stockholders Equity for 2018

Rate of return for Common Stockholders Equity for 2018 = [Net Income / Average Equity] x 100

= [$23,800 / {($45,200 + $32,900)/2}] x 100

= [$23,800 / $39,050] x 100

= 60.9%

3 0
3 years ago
Categories of expenditures
Evgesh-ka [11]

Answer:

1. Bob buys a sweater made in Guatemala. - it is an import (M), not included in GPD.

Imports are substracted from exports to reach net exports, which are part of GDP. This is an import because Bob lives in the U.S. and the sweater was made in Guatemala.

2. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. - Government purchases (G), included in GDP.

It is a government purchase because it is the state authority who is investing the resources in repaving the highway.

3. Cho gets a new video camera made in the United States. - it is consumption (C), included in GDP.

Cho lives in the U.S. and buys a camera made in the U.S., this is private consumption.

4. Eric buys a new set of tools to use in his plumbing business. - it is investment (I), included in GDP.

Investment are the purchases of goods, by private individuals or firms, with the goal of obtaining future economic benefits from their use. In other words, Investment is the purchase of assets. Eric is buying an asset for his business: a set of tools.

5. Bob's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. - it is an export (X), included in GDP.

Exports are goods and services, produced domestically, but sold abroad. Bob is providing a service to a foreign company, and as an person living in the U.S., the value of that service is an export, and included in the GDP calculation.

4 0
3 years ago
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