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marissa [1.9K]
3 years ago
11

oneycutt Co. is comparing two different capital structures. Plan I would result in 39,000 shares of stock and $108,000 in debt.

Plan II would result in 33,000 shares of stock and $324,000 in debt. The interest rate on the debt is 7 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $160,000. The all-equity plan would result in 42,000 shares of stock outstanding. What is the EPS for each of these plans
Business
1 answer:
Mila [183]3 years ago
8 0

Answer:

All equity plan:

EPS = $160,000 / 42,000 = $3.81

Plan I:

EPS = [$160,000 - ($108,000 x 7%)] / 39,000 = $152,440 / 39,000 = $3.91

Plan II:

EPS = [$160,000 - ($324,000 x 7%)] / 33,000 = $137,320 / 33,000 = $4.16

Plan II is better since the resulting EPS is higher than the other alternatives.

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The number of U.S. households with access to the Internet is growing rapidly. Compared to 50 years ago, one would predict that w
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Answer: The correct answer is "(C) more information because the Internet has lowered the cost of gathering information.".

Explanation: Internet access provides people with an innumerable amount of information very quickly so we can say that the cost of gathering information has decreased.

7 0
3 years ago
John is thirty years old and Kelly does not have a college degree. Based on this information, members of protected classes inclu
Colt1911 [192]

Answer:

John

Explanation:

Protected classes are a group of people who are qualified to be protected by law against discrimination based upon following basis:

  1. Race
  2. Religion
  3. National Origin i.e a person's nationality
  4. Age
  5. Sex: i.e gender based discrimination
  6. Pregnancy
  7. Familial status i.e individuals with family and kids or without family and kids
  8. Disability
  9. Veteran i.e the ones who have served armed forces
  10. Genetic Information or genes/ genetics of an individual

Since age is included as a basis of discrimination against which members of protected classes are protected, John's age being thirty years cannot be held against him if he is capable and qualified for a particular work.

Degree or academic qualification is not included under above basis and hence Kelly will not be included in members of protected classes.

3 0
4 years ago
What is the role of the entrepreneur in the modern economy?
iris [78.8K]

Answer:

B) TO CREATE JOBS

Explanation:

2. Create Jobs: Entrepreneurs are the organizers of the other factor of production(Land, Labour Capital) and are by nature and definition job creators, as opposed to job seekers. The simple translation is that when you become an entrepreneur, there is one less job seeker in the economy, and then you provide employment for multiple other job seekers. This kind of job creation by new and existing businesses is again is one of the basic goals of economic development. All this in turn creates a lot of job opportunities, and is helping in augmenting our standards to a global level.

4 0
3 years ago
Read 2 more answers
Jensen Cleaning Service uses the listed accounts. (Some of the accounts will be explained in Lesson 2-3.) Prepare two T accounts
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Answer:

Cash Sales Transaction

Journal Entry

Dr.  Cash   100,000

Cr.   Sales  100,000

Cash received and sales has been recorded due to the nature of Cash and Income, Cash and Sales is entered as Debit and credit respectively.

* For Journal posting MS excel file is attached which has T account with above transaction posted in it.

Explanation:

Download xlsx
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3 years ago
​Nguyen's Sporting Goods is having difficulty obtaining the credit it needs to expand. What should the company do in order to al
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Answer:

Work out a plan with its financial intermediaries.

Explanation:

As mentioned in the question that Nguyen's Sporting Goods is having difficulty obtaining the credit, it needs to expand. The company should <u>work out a plan with its financial intermediaries</u>, in order to alleviate its financial situation. Because as we all know that a  financial intermediary is a financial institution as well. So the company has to create a plan with there financial institution.

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3 years ago
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