Answer:
Explanation:
I honestly don't know how to answer this, but I can look into it and get back to you.
Answer:
c. $4,025,200
Explanation:
The computation of the total cash receipts from sales and collections in April month is shown below:
= April sales × cash sales percentage + April sales × credit sales percentage × collection month percentage + March sales credit sales percentage × Following month collection percentage
= $4,000,000 ×30% + $4,000,000 × 70% × 40% + $4,200,000 × 70% × 58%
= $1,200,000 + $1,120,000 + $1,705,200
= $4,025,200
Since cash sales are 30% , so the credit sales would be 70%
Answer:
The correct answer is d. Economists strongly agree with the first claim, but are skeptical of the second.
Explanation:
A mutual fund is an investment alternative that consists of contributions from natural and legal persons (called participants or contributors), to form equity for their investment in shares, debt instruments or fixed income, or a combination of both ( shares + fixed income). They offer a diversified investment alternative since they invest in numerous instruments at the same time. These instruments vary according to the type of fund and are defined by the investment policy regulated by the Superintendency of Securities and Insurance. They are managed by corporations called General Fund Administrators (AGF) that are chosen by the participants themselves. It is important to choose both the administrator and the type of fund based on what best suits each personal situation.
Consumer surplus is difference between the amount that consumers are willing and able to pay for a good or service
In this case, Nicki is willing to pay $1,100 for the camera, but she is only asked to pay 900. So Nicki has a consumer surplus of $200
Solution :
a). The current market value of the unlevered equity
![$=\frac{75\% \times \$52 \text{ million} + 25\% \times \$22 \text{ million}}{1+10 \%}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B75%5C%25%20%5Ctimes%20%5C%2452%20%5Ctext%7B%20million%7D%20%2B%2025%5C%25%20%5Ctimes%20%5C%2422%20%5Ctext%7B%20million%7D%7D%7B1%2B10%20%5C%25%7D%24)
= $ 40.45 million
b). The market value of the equity one year from now is
![$=(75\% \times \$52 \text{ million} + 25\% \times \$22 \text{ million})- \$18 \ \text{million}$](https://tex.z-dn.net/?f=%24%3D%2875%5C%25%20%5Ctimes%20%5C%2452%20%5Ctext%7B%20million%7D%20%2B%2025%5C%25%20%5Ctimes%20%5C%2422%20%5Ctext%7B%20million%7D%29-%20%5C%2418%20%5C%20%5Ctext%7Bmillion%7D%24)
= $ 44.5 million - $ 18 million
= $ 26.5 million
c). The expected return on the equity without the leverage = 10%
The expected return on the equity with the leverage = ![$=10\% +\frac{ \$22 \text{ million}}{\$ 26.5 \text{ million}}$](https://tex.z-dn.net/?f=%24%3D10%5C%25%20%2B%5Cfrac%7B%20%5C%2422%20%5Ctext%7B%20million%7D%7D%7B%5C%24%2026.5%20%5Ctext%7B%20million%7D%7D%24)
= 0.93 %
d). The lowest possible value of equity without the leverage = $20 million - $ 18 million
= $ 2 million
The lowest return on the equity without the leverage = 10%
The lowest return on the equity with the leverage = 2 % as the equity is eroded.