To increase their own profits. <span>Increasing company’s profit is one of
the main goals of the corporations and also of its shareholders. This is because
a company is made to accumulate wealth of everyone who invested in it. This is
also one way company can continue their operation, since profit is the
bloodline of every businesses.</span>
Answer:
The Tax savings for the property tax is 3200 USD.
Explanation:
As Katie paid property taxes as $10000 in tax-deductible property taxes. In calculation of this the marginal tax rate is used in calculation. Thus
So the Tax savings for the property tax is 3200 USD.
Answer:
$67.20
Explanation:
Given:
Dividends paid, D₀ = $3.20
Growth rate = 5%
Required return rate = 10%
Now,
The expected value of the company’s stock
= 
on substituting the respective values, we have
= 
or
= $67.20
Hence, The correct answer is option $67.20
Answer:
If the firm is going to need less than 50,000 motors, they should purchase them from the outside vendor.
If the firm is going to use between 50,000 to 59,999 motors, it should use process A.
If the firm expects to use 60,000 or more motors per year, it should use process B.
Explanation:
Process A:
contribution margin per unit = $11 - $7 = $4
break even number of units = $200,000 / $4 = 50,000 units
Process B:
contribution margin per unit = $11 - $8 = $3
break even number of units = $180,000 / $3 = 60,000 units
Answer:
1. What is the net working capital for the above company?
Net Working Capital will be 45
2. If the company pays back all of its accounts payable today using cash, what will its net working capital be (in million of USDs)?
Net Working Capital will be 45
3. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be (in million of USDs)?
Net Working Capital will be -1
Explanation:
1.
Net Working Capital = Total Current Asset - Total Current Liabilities
Net Working Capital = 89 - 44 = 45
2.
Current Asset after payment = 89 - 39 = 50
Current Liabilities after payment = 44 - 39 = 5
Net Working Capital = Total Current Asset - Total Current Liabilities
Net Working Capital = 50 - 5 = 45
3.
Current Asset after Purchase = 89 - 46 = 43
Current Liabilities after Purchase = 44 - 0 = 44
Net Working Capital = 43 - 44 = -1
