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frosja888 [35]
3 years ago
7

Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $475,000. To do s

o, it will have issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is ___________
Business
1 answer:
Masteriza [31]3 years ago
3 0

Answer:

22.76%

Explanation:

Calculation to determine what The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is

First step is to calculate Total amount raised Using this formula

Total amount raised = Initial investment/(1-Flotation cost)

Let plug in the formula

Total amount raised= $475,000/(1-2%)

Total amount raised=$475,000/0.98

Total amount raised= $484,694

Now let calculate the Rate of return

Rate of return = (595,000- $484,694)/$484,694

Rate of return=110306/$484,694

Rate of return= 22.76%

Therefore The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is 22.76%

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Reggie who is 55, had adjusted gross income of $32,000 in 2020. During the year, he paid for the following medical expenses:
sleet_krkn [62]

Assuming Reggie who is 55, had an adjusted gross income of $32,000 in 2020, Reggies medical expense deduction will be $75

Calculation to determine Reggie medical expense deduction

Drugs  $500

Add Health insurance premium-after tax $850

Add Doctors fees $1,250

Add Eye glasses $375

Total expenses  $2,975

($500+$850+$1,250+$375)

Less Insurance reimbursement  ($500)

Less 7.5% of Adjusted gross income ($2,400)  

($32,000×7.5%)

Medical Expense Deduction  $75

($2,975 - $500 - $2,400)

Inconclusion assuming Reggie who is 55, had an adjusted gross income of $32,000 in 2020, Reggies medical expense deduction will be $75

Learn more here:

brainly.com/question/17136095

6 0
3 years ago
Each of the following statements describes how the political and legal environment encourages productivity EXCEPT: A. Well-defin
natita [175]

Answer:

C. Price changes in markets provide suppliers incentives to supply goods to markets.

Explanation:

Price changes in the market has two perspective,

  • increase in price, will increase the productivity for retailers,
  • decrease in price, will decrease the productivity for retailers.

With increase the retailers expect to earn more, and with decrease the retailers expect to earn less.

This is a normal market condition and scenario, this does not link to any kind of political or legal environment, although the change in price might be due to political or legal policies, but the increase or decrease in productivity, is not related to any political or legal influence.

6 0
3 years ago
Equipment costing $16000 is purchased by paying $4000 cash and signing a note payable for the remainder. The journal entry shoul
grigory [225]

Answer:

c. credit to notes payable

Explanation:

Based on the information given we were told that the Equipment which cost the amount of $16000 was purchased by paying the amount of $4000 as cash which means that if the company sign a NOTE PAYABLE for the remainder. The journal entry should include a: CREDIT TO NOTES PAYABLE

5 0
3 years ago
A factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at th
natima [27]
Given that a<span> factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at the end of its 5-year useful life. it was also estimated that the machine would be run 40000 hours in the 5 years. the company ran the machine for 4000 actual hours in 2018.

If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be

\frac{375000-75000}{40000} \times4000= \frac{300000}{10} =\$30,000</span>
4 0
3 years ago
The purchaser of a tbond futures contract priced at 101-16 at the time of the sale agrees to deleiever 100,000 facevalue treasur
jek_recluse [69]

Answer:

The answer is "True".

Explanation:

Please find the complete question in the attached file.

It implies that its price of the bond is 101-16, which is to say

\to 101 + \frac{16}{32}\\\\\to  \frac{3232+ 16}{32} \\\\\to  \frac{3248}{32} \\\\\to 101.5

Each bond is thus stated as 101.5 \% face value

\to 101.5\% \times 100,000 \\\\\to 101,500.00

That's why this statement is true.

5 0
3 years ago
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