Answer:
64%
Explanation:
Commercial banks have been found to provide most of the credit needs of small businesses. So small business owners are more likely to get a loan from a commercial bank close to them.
Commercial banks however tend to be reluctant when the economy is stagnant. Mostly small businesses in an economy that is slow have challenges repaying loans collected.
However funds have been made available for small business and are made available primarily through commercial banks
Answer:
Expected Net Cash Flow = $3.8 million
Net Present Value (NPV) = $1.0492 million
Explanation:
Given Cash outflow = $10 million
Provided cash inflows as follows:
Particulars Good condition Moderate condition Bad Condition
Probability 30% 40% 30%
Cash flow $9 million $4 million $1 million
Average expected cash flow each year = ($9 million X 30 %) + ($4 million X 40%) + ($1 million X 30%) = $2.7 million + $1.6 million + $0.3 million = $4.6 million
Three year expected cash flow = ($4.6 million each year X 3) - $10 million = $13.8 million - $10 million = $3.8 million
While calculating NPV we will use Present Value Annuity Factor (PVAF) @12% for 3 years = 
NPV = PV of inflows - PV of Outflows = $4.6 million X 2.402 - $10 million = $11.0492 million - $10 million = $1.0492 million
Expected Net Cash Flow = $3.8 million
Net Present Value (NPV) = $1.0492 million
Voluntary exchange is the actions of buyers and sellers freely coming together in the marketplace to buy and sell goods. They are not restricted or told what to buy, how to buy it, or how much, by the government or any other regulator.
Answer:
$25,300
Explanation:
The computation of the common shareholders received the dividend for the year 2021 is shown below:
Since in the year 2021, the dividend i.e. declared is $61,000
Now the preference shareholders dividend is
= $510,000 × 0.07
= $35,700
So for common shareholders, the dividend would be
= $61,000 - $35,700
= $25,300
Answer:
3.34 times
Explanation:
Ginger incorporation has a market valu of equity of $710,000
The debt is $227,800
Cash is $45,600
EBIT is $102,800
The first step is to find the enterprise value
= market capitalization + debt -cash
= $710,000 +$227,800 - $45,600
= $937,800-$45,600
= $892,200
The EBITDA can be calculated as follows
= EBIT + depreciation and amortization
= $102,800 + $164,600
= $267,400
Therefore the enterprise value-EBITDA can be calculated as follows
= 892,200/267,400
= 3.34 times
