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Anton [14]
3 years ago
10

Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no broker

age fees and shares can be purchased at a 20% discount. During 2021, employees purchased 19 million shares; during this same period, the shares had a market price of $15 per share at the end of the year. Martin's 2021 pretax earnings will be reduced by:
Business
1 answer:
Rashid [163]3 years ago
8 0

Answer: $57,000,000

Explanation:

The employees purchased at a 20% discount which means that this 20% discount is the amount that would have to be covered by the company's pretax earnings:

= 19,000,000 * 15 * 0.2

= $57,000,000

<em>Martin's pretax earnings will be reduced by $57 million because the company would have to cover the discount on the shares. </em>

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You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year
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Answer:

Simple payback is 4 years

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Explanation:

Payback period is the time period in which the project recovers the initial cost incurred. Lower the payback period the more beneficial will be the project.

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Total discounted cash flows = 22935.78 + 21042.0 + 19304.59 + 17710.63 + 16248.28 = 97,241.28

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3 years ago
Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation
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Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter required: Calculate the estimated cost of workers' compensation insurance for the year.

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3 years ago
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