Answer:
65 months
Explanation:
Data provided in the question:
Limit of the credit card = $1,000
Cost of the new CD player and speakers = $975
Minimum monthly payment made by Katsumi = $15
Now,
since there are no finance charges charged,
therefore,
the net payment that has to be made is $975
Therefore,
Months needed to pay off the rate
= [ Net payment amount ] ÷ [ Minimum monthly payment ]
= $975 ÷ $15 per month
= 65 months
Answer:
Each share worth is $2.59
Explanation:
According to the given data we have the following:
D1 = Cash Flow at the end of year 1 = $ 10 million
r = Cost of Capital = 10% = 0.1
g = perpetual growth of cash flows
Hence, The present value of Cash Flows = D1/(r-g)
= 10/(0.1-0.03)
=10/0.07
= $ 142.8571428571 million
= $ 142.86 million
To find the equity value we need to remove the net debt from cash flows
Net Debt = Debt - Cash
= 22 - 8.5
= $ 13.5 million
Now net cash flows = Cash Flows - Net Debt
= 142.86 - 13.5
= $ 129.36 million
Therefore, each share worth = Present Value of Cash Flow / No of Outstanding Shares
= 129.36 / 50 (Both values are in millions so the zeros are ignored)
= 2.5872
= $2.59
Each share worth is $2.59
Answer:
The income before taxes for Discounted Supplies Inc is calculated as follows:
Sales - $100,000
less Variable cost - $24,500
less Fixed cost: Controllable & Uncontrollable & Unallocated - $25,500
less Operating cost - $16,400
Net Income = $33,600
Explanation:
The net income is the income before taxes. It is arrived at after deducting variable and fixed costs of sales, including operating cost.
It is based on this figure that income taxes will be levied.
The net income or income before taxes is regarded as the bottomline profit or returns or earnings that is distributable to stakeholders, including the government for taxation and the shareholders in form of dividends.
It shows the result of the efforts in running a business. A positive income before taxes shows that costs are being efficiently managed. It leaves a compensation for investors and the economy as a whole.
Answer:
D. Land and construction costs are comparatively less expensive in Russia than in Canada
Explanation:
Option D would favor Russia ahead of Canada because of the fact that manufacturing costs are cheaper and they have easier access to Capital. I came to this conclusion since it has been stated that land and construction costs are cheaper in Russia.
In Economics the goal of every firm is to minimize cost and to maximize profit. Option D is cost minimizing for cool cars if they want to duplicate their overall success.
