Answer:
The value of the firm according to M&M Proposition I with taxes is $513,824.62
Explanation:
Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]
Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%
Value of firm = 62320 / 0.13 + 143500 x 0.24
Value of firm = 479,384.62 + 34,440
Value of firm = $513,824.62
Answer and Explanation:
As we know that the credit amount should be allowed a qualified deduction of 100% till $2,000 and the next 25% is $2,000
In the given situation, the credit amount would be
= $1,600 × 100%
= $1,600
As the AGI is $175,000 i.e. exceeded the prescribed amount i.e. $160,000 so it would be phased out till $180,000
So, after considering the phase out application limits, the credit is
= $1,600 × ($180,000 - $175,000) ÷ ($180,000 - $160,000)
= $400
So, the total credit is $400 out of which $160 is refundable and the remaining balance i.e. $240 would be non-refundable
Coca-cola provides a children's center with props, costumes, and decorations for use in a community play. this type of activity is known as sponsorship. Coco-cola is sponsoring the children's center by giving/donating items to the children's center. Normally, these items will have the logo or brand of company that is giving donations on the items so that when people see them, they think of the company.
Let
Department 2 Machine hours Be x, and using the equation below.
<span>Find ATQ : </span>
<span> 5= (440000 + 245000) / (74000 + x)</span>
=>
370000 + 5x = 685000
=>x = 63000
Therefore,
there are 63,000 machine hours that the company expects in Department 2.
<span> </span>
Answer:
C) Yes: The one-week measures show demand is elastic, so a price increase will reduce revenues.
Explanation:
The error that the Manager did was to under-estimate the principles of elasticity of demand that posits that increase in price is inversely proprtional to demand. Perhaps, she also overrated the quality of their services without given thoughts to the presence of competition and customers’ decisions in a competitive market.
The survey carried out was a proof of the fact that price increase had an inverse effect on the demand for the services, as was shown by the rate of decline in the number of customers who enrolled in Verizon's cellular plans especially in those states where they had the best of customers’ loyalty.
