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
notka56 [123]
3 years ago
5

Medallion Cooling Systems, Inc., has total assets of $10,000,000, EBIT of $2,000,000, and preferred dividends of $200,000 and is

taxed at a rate of 40%. In an effort to determine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for various levels of indebtedness, and the overall required return on investment:,
a. Calculate earnings per share for each level of indebtedness.,

b. Use Equation 13.12 and the earnings per share calculated in part a to calculate a price per share for each level of indebtedness.,

c. Choose the optimal capital structure. Justify your choice

Business
1 answer:
liraira [26]3 years ago
4 0

Answer:

Explanation:

The two attached pictures shows the explanation for this problem. I hope it help you. Thank you

You might be interested in
June
bazaltina [42]

Answer:

........................Income Statement for the month of June...............................

Service Revenue.....................................................................$5,544

Less Expenses

Rent Expense .................................................$440

Utilities Expense.............................................$220

Salaries and Wages Expense......................$880

Gasoline Expense...........................................<u>$88</u>

Total Expenses .........................................................................(<u>$‭1,628‬)</u>

Net Income (Loss).............................................................$‭3,916‬

Service revenue = Services performed on the 5th + Services performed on the 20th

= 4,224 + 1,320

= $5,544

5 0
3 years ago
What is the Best way to conduct a survey?
VladimirAG [237]
One good way is to do an online survey so you get the results intantly. the downside of online is that not every one knows that there is a survey.  Hard copy surveys are also good, but the tend to get lost and cluttered.  oh yeah, the more people take the survey, the more accurate it should be
5 0
3 years ago
Read 2 more answers
Which of the following is NOT a way that the Fed controls the money supply?
Grace [21]

Answer:

A-Changing federal income tax rates

Explanation:

The Fed controls the money supply using monetary policy tools. Monetary policy is either expansionary or contractionary. The Fed chooses which policies to apply depending on the prevailing economic conditions.

Monetary policy tools available to the Fed include reserve requirements, interest on reserves, open-market operations, discount rates, and the federal fund rate.

The Fed does not set the federal income tax rates. Taxes are part of the fiscal policy applied by the executive arm of government. The government alters taxation to achieve desired macroeconomics objectives.

7 0
3 years ago
Requirement 3. Use the predetermined overhead allocation rates to compute the​ activity-based costs per unit of the commercial c
Iteru [2.4K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
4 0
3 years ago
A company's Office Supplies account shows a beginning balance of $630 and an ending balance of $460. If office supplies expense
nalin [4]

The correct answer is that there was $3,080 worth of office supplies purchased during the period.

In order to answer this question you know that the company started with $630 worth of office supplies and ended the year with $460 worth, or $170 less than they started with. The company used $170 of supplies from inventory, so they needed to purchase another $3,080 in order arrive at the $3,250 that we know was the total expense during the reporting period.

5 0
3 years ago
Other questions:
  • 6. You have 45 years left until retirement and want to retire with $4 million. Your salary is paid annually, and you will receiv
    5·1 answer
  • Modern Refurbishing Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a
    7·1 answer
  • Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and Davi
    5·1 answer
  • Pittsboro Corporation produces and sells a single product. Data for that product​ are: Sales price per unit Variable cost per un
    6·1 answer
  • An article in the Wall Street Journal refers to​ "debt-strapped emerging markets already struggling with​ current-account defici
    8·1 answer
  • If (1) the cost of manufacturing computers decreases and (2) at the same time the quality improves, making computers more useful
    12·1 answer
  • Leona bought two different brands of wine from vineyards in Australia. When asked for her opinion about the wines, she said that
    8·1 answer
  • Which of these is LEAST LIKELY to determine credit worthiness? A) payment history B) length of employment C) personal health his
    9·2 answers
  • WAYS IN WHICH THE YOUTH CAN MANAGE STRESS<br>​
    13·1 answer
  • which pdp plan is designed for customers who are receiving extra help and need basic protection? quizlet
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!