1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleks [24]
3 years ago
8

A firm is considering two different capital structures. The first option is an all-equity firm with 75,000 shares of stock. The

second option is 50,000 shares of stock plus some debt. Ignoring taxes, the break-even level of earnings before interest and taxes between these two options is $95,000. How much money is the firm considering borrowing if the interest rate is 8 percent
Business
1 answer:
Contact [7]3 years ago
6 0

Answer:

$395833

Explanation:

Calculation to determine How much money is the firm considering borrowing if the interest rate is 8 percent

Amount to borrowed=(95000 / 75000) = [95000 – (X * 0.08)] / 50000

Amount to borrowed=1.26 = [95000 – (X * 0.08)] / 50000

Amount to borrowed=63333.33 = 95000 – (X * 0.08)

Amount to borrowed=31666.65 = X * 0.08

Amount to borrowed=X=31666.65/0.08

Amount to borrowed=$395833.33

Therefore How much money is the firm considering borrowing if the interest rate is 8 percent will be $395833

You might be interested in
Property taxes are based on
Mashutka [201]

Answer:

property taxes are based on the purchase price of the property.

Explanation:

when you buy a home, the assessed value is equal to the purchase price.

7 0
3 years ago
Read 2 more answers
g "The cost of salaries paid to employees who work in a factory maintaining the heating system is considered:"
Doss [256]

Answer:

Factory overhead

Explanation:

FACTORY OVERHEAD can be defined as the costs which are often incurred during the manufacturing process and they don't include the costs of direct labor and the costs of direct materials which is why FACTORY OVERHEAD are often aggregated into the cost pools as well as been allocated to units produced during the manufacturing period.

In order word FACTORY OVERHEAD can be seen as the total cost which is been involved in operating all of the production facilities of a manufacturing business in which they cannot be traceable directly to a product and it also include the cost of salaries which is been paid to employees who work in a factory .

6 0
3 years ago
If you put $7000 in a saving account that earns 2% interest for 10 years, how much will you have in
blondinia [14]

Answer:

1) 56,000

2) 9,950

3) 8,479

4) 25,500

Explanation:

1)20% of 70.000=56.000

2)5% of 10.000=9.950

3)21% of 10.500=8.479

4)15% of 30.000=25.500

4 0
3 years ago
Daimler AG agreed to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, which is an example of
Effectus [21]

Daimler AG agreeing to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, is an example of countertrade

<h3>What is Countertrade?</h3>

Countertrade is the means by which good and services is being paid for, with other goods or services, instead of with money.

Examples of countertrade include:

  • Barter
  • Counter purchase
  • Offsets

From the question, since Daimler AG agreed to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, hence countertrade has occurred.

Learn more countertrade on brainly.com/question/14659049

8 0
3 years ago
If ___________ is the most important thing about your product, you want to make the product available in many locations that are
UNO [17]
Try presentation. i think that will work it seems like it fits perfectly 
3 0
4 years ago
Other questions:
  • What’s the difference between earned income and costs
    6·1 answer
  • PLEASE HELP ME!
    5·2 answers
  • The PEN Corporation with a book value of $20 million and a market value of $30 million has acquired the CNC C transaction is a p
    8·1 answer
  • Assume that on July 1, 2021, Togo's Sandwiches issues a $2.02 million, one-year note. Interest is payable at maturity. Determine
    6·1 answer
  • The following transactions occurred during January 2021:
    12·1 answer
  • How long and when do political caucuses last?
    9·1 answer
  • Downloading music tracks owned by record companies without paying for them is an example of a violation of: Question 3 options:
    15·1 answer
  • While executing a command, the shell: a. Runs a shell script. b. Executes it in the same process as the shell. c. Creates a chil
    9·1 answer
  • b) State the minimum monthly income and hourly wage per worker needed to cover monthly expenses for the family you used in part
    5·1 answer
  • A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional paid-in capital would be _______
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!