Answer:
local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is the value of your firm's tax shield, i.e., how much value does the use of debt add?
Explanation:
Answer:
<u>A Star.</u>
Explanation:
The Boston Consulting Group (BCG) matrix depicts a product's market share against the market growth rate. The matrix is also known for it's cow- dog metaphor.
The matrix represents 4 situations namely:
1. Stars : Products with high market share in high growth markets i.e high- high situation.
2. Cash Cows: Products with high market share in low growth markets.
3. Question Mark: Products with low market share in a high growth markets.
4. Dogs: Products with low market share in low growth markets.
In the given case, the product dominates the market i.e high market share. Secondly, it operates in a high growth market. Which means, the product belongs to the situation of a Star.
Answer:
$3,920 favorable
Explanation:
For computing volume variance first we have to find out the overhead rate which is shown below:
Overhead rate is
= $78,400 ÷ 4,000 machine hours
= $19.6 per machine hour
And, the
Volume variance is
= (Normal capacity - standard hour allowed) × overhead rate
= (4,000 machine hours - 4,200 machine hours) × $19.6
= $3,920 favorable
We simply applied the above formula so that the volume variance could come
I believe the answer you're looking for is $145. explanation is marginal cost equals change in total variable cost/change in quantity. So it would be $9.4 million - $6.5 million = $2.9 million/20,000. So $2,900,000÷20,000= $145
Answer:
Net cash from operating activities=$2,100,000
Explanation:
<em>The net cashflow from operating activities represent how much a business generates doing its ordinary course of business.</em>
It is the net income adjusted for all non-cash items like depreciation e.t.c
Net cash from operating activities = 1,700,000 + 400,000= $2.100,000
Net cash from operating activities=$2,100,000