$12500000
external equity is needed
<u>Explanation:</u>
The given data:
Production capacity to be maintained : 45%, investment = $20 million, debt level to be maintained = 35%, dividend distributing = 55%, net income = $5 million
<u>INVESTMENT IN PLANT MACHINARY
</u>
= $20000000
<u>NET INCOME OF YEAR 2018</u> = $5000000
<u>RETAINED EARNNING AFTER DIVIDEND
</u>
= $2250000
<u>DEBT FINANCING
</u>
= $5250000
<u>EXTERNAL EQUITY NEEDED
</u>
= TOTAL INVESTMENT - DEBT FINANCING - RETAINED EARNNINGS
= $12500000
Answer:
present value 15.826 million
r = 10.42 % = IRR
Explanation:
The problem requires a long solution. I have to use microsoft word for the solution. and its so explanatory on it.
The answer is marginal costs in both places are the same. This
is because the farmers in both places are profit-maximizers, the value in each flat
is equal to MC or Marginal Cost and subsequently the market of corn is competitive,
the price of corn in both places is the same. Also, marginal costs are higher
in East Icicle than in Corncrib can also be a possible answer. For any given outflow
per acre Corncrib’s corn yield are far better than in East Icicle, at any level
of output, the marginal cost per acre in East Icicle must be higher in
Corncrib, which suggests that in equilibrium the output level of corn in East
Icicle is less than the output level of corn in Corncrib.
Answer:
The correct answer is the letter d. Advances in the technical knowledge used in production.
Explanation:
Technology is an important variable in economic growth models, having a positive effect on the production process. Technological progress occurs when technology increases over time, and its effect is on worker productivity. That is, technological advancement enables work to become more productive, culminating in sustainable per capita gross domestic product growth.
Answer:
Explanation:
a. General Journal
1
Dr Cash $27,500
Cr Common Stock $27,500
2
Dr Merchandise Inventory $22,000
Cr Cash $22,000
3
Dr Cash $ 30,500
Sales $ 30,500
4
Dr Cost of goods sold $ 15,600
Merchandise Inventory $ 15,600
c)
Income Statement
For the year ended December 31,Year 1
Sales $ 30,500
Cost of good sold $ 15,600
Gross Margin $ 14,900
d)
Cash Flow from Operating Activities:
Purchase of Inventory ($22,000)
Cash Sales made $ 30,500
Cash Flow from Operating Activities $8,500
