Answer:
$91.125 million
Explanation:
Data provided in the question:
The Recent stock price of Company ABC = $11.25
Number of shares of common stock outstanding = 8.1 million
Now,
The market capitalization of Company ABC
= stock price × Number of shares of common stock outstanding
or
The market capitalization of Company ABC = $11.25 × 8.1 million
or
The market capitalization of Company ABC = $91.125 million
Answer and Explanation:
The computation of total avoidable costs is shown below:-
<u>Particulars Keep old machine Buy New machine</u>
Opportunity cost of
buying the old
machine $44,000
Purchase amount $117,000
Operating expenses $208,000
($52,000 × 4 years)
Operating expenses
($7,000 × 4 years) $28,000
Total avoidable costs $252,000 $145,000
b. The new machine cost is lower to the lower one so it can be replaced.
Answer:
The Manager Andy Davis worked hard to improve Eddie's behavior and skills by implanting commitment in improving Eddie through team-based efforts.
Explanation:
Answer:
x=0.25
Explanation:
Assuming that consumers value every non-defective car at $10,000 each, only defective used cars are for sale. Therefore, consumers value defective cars at $2,000.
The expected value of a new car is given by the defective new car rate (x) multiplied the defective value, added to the non-defective car rate (1-x) multiplied by the non-defective car value.
The fraction x is 0.25. That is, 25% of new cars sold are defective.
Answer:
c.$37,737
Explanation:
Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]
PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322
PV of Cost of Buying = $262,434
Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))
PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)
PV of Cost of Leasing = $224,697
Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing
Net advantage to leasing = $262,434 - $224,697
Net advantage to leasing = $37,737
