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Ivahew [28]
3 years ago
7

Smashed Pumpkins Co. paid $88 in dividends and $526 in interest over the past year. The company increased retained earnings by $

438 and had accounts payable of $522. Sales for the year were $16,055 and depreciation was $696. The tax rate was 38 percent. What was the company's EBIT?
Business
1 answer:
Andreas93 [3]3 years ago
8 0

Answer:

$1,374

Explanation:

With regards to the above, first, we will compute the net income.

Net income = Dividends + Increase in retained earnings

= $88 + $438 = $526

Therefore,

EBIT = [Net income / (1 - tax rate)] + Interest

= [$526 / (1 - 0.38)] + $526

= [$526 / 0.62] + $526

= $848 + $526

= $1,374

The company's EBIT is $1,374

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Erin promises to pay her friend Stephanie$10,000 if Stephanie refrains from eating any foods that contain animal products. Steph
Dmitrij [34]

Answer:

Yes

Explanation:

There was a valid consideration because an amount of money $10,000 was promised and clearly agreed between both parties Erin and Stephanie.

There is an enforceable contract because there was an offer and acceptance; mutual obligation and consideration, and the subject matter was not illegal.

Contracts must not be written to be enforceable. Erin and Stephanie's contract was oral and still enforceable. The question however will be if Erin is of age to be able to pay $10,000 otherwise the contract may not be enforceable or binding.

8 0
3 years ago
Read 2 more answers
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note t
dolphi86 [110]

Answer and Explanation:

The computation of the MIRR is shown below:

But before that terminal cash flow required to calculate

<u> Year       Cash Flows    FV Factor Formula      Terminal Value </u>

<u>                                                                       (Cash Flow × FV Factor) </u>

0             ($1,000)    

1               $450                 1.21                (1 +10%)^(2)      $545

2             $450                   1.1                 (1 + 10%)^(1)     $495

3            $450                   1                       1                 $450

Terminal Cash Flow                                                      $1,490

now the MIRR is

MIRR = \sqrt[n]{\frac{terminal\ cash\ flow}{initial\ investment} } - 1\\\\= \sqrt[3]{\frac{\$1,490}{\$1,000} } - 1

= 14.22%

As it can be seen that the MIRR is more than the WACC so the project should be accepted.

8 0
2 years ago
The nominal exchange rate is the a rate at which a person can trade the currency of one country for the currency of another. b t
mash [69]

Answer:

rate at which a person can trade the currency of one country for the currency of another

Explanation:

Nominal exchange rate is a rate at which a person can trade the currency of one country for the currency of another.

Nominal exchange rate = real exchange rate + inflation rate

Real exchange rate is the number of goods a person can trade for a similar good in another country.

The real exchange rate has been adjusted for inflation.

Real éxchange rate = nominal exchange rate - inflation rate

I hope my answer helps you

4 0
3 years ago
Which of the following is a capital resource? a. A computer programmer. b. A corporate bond issued by a computer manufacturer. c
Furkat [3]

Answer:

The answer is B. corporate bond issued by a computer manufacturer

Explanation:

Capital in business is the money committed to the business by its owner or owners. Capital can also be from a borrowed fund e.g loan

Bond is a long term loan issued to finance a capital project.

Therefore, the corporate bond issued by a computer manufacturer is a capital.

Option A which is a computer programmer is a human asset.

Option C is an inventory (Current assets). This is used to make computer chips.

Option D is an asset

6 0
3 years ago
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PSYCHO15rus [73]
Small scale business society can nurture entrepreneurial skills in children
7 0
3 years ago
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