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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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Which of the following statements is CORRECT? a. The bid price in a hostile takeover is generally above the price before the tak
just olya [345]

Answer:

a.

Explanation:

Based on all the answers that were provided the statement that is correct is that the bid price in a hostile takeover is generally above the price before the takeover attempt is announced, because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail. Which pretty much explains itself, except for that a hostile takeover is when a person or another business tries to purchase a business by going directly to the shareholders themselves.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $4
valina [46]

Answer:

Margin of safety - Units =3350

Margin of safety - Sales Revenue = $251250

Explanation:

Margin of Safety indicates how much sales may decrease before a loss can be made.

<u>Margin of safety - Units</u>

Margin of safety - Units = 5000-1650 =3350

<em>Margin of Safety as a % = 3350/5000 ×100 = 67%</em>

<u>Margin of safety - Sales Revenue</u>

Expected Sales = (5000 × $75) =$375000

Margin of Safety = $375000 × 67% = $251250

3 0
3 years ago
Which of the following is a retirement plan offered by banks and investment companies in which an individual can deposit money t
Makovka662 [10]
Roth IRA would be the answer.
6 0
3 years ago
Read 2 more answers
abc and xyz agree to maximize joint profits. However, while ABC produces the agreed upon amount, XYZ breaks the agreement and ea
Marat540 [252]

Answer:

The answer is "$ 140".

Explanation:

The company produces the quantity MR = MC and if there is no quantity MR = MC, the amount throughout the case MR is just greater and closest to MC to maximize profit.

Here MR = marginal income and marginal cost =MC

MR =\frac{Overall \ sales \ change}{Quantity\ shift}

In the above table, we could see that the amount MR = MC = 8 isn't available. Thus it produces the amount where the MR

is only larger but nearest to MC.

25 unit MR =\frac{TR \ change}{Quality \ change}

= [TR (when \ Q = 25) -TR \frac{(when \ Q = 20)]}{(25 - 20)}

= \frac{(450 - 400)}{5}= 10

(Minimum and superior to MC)

MR of 30 units=\frac{(480 – 450)}{(30–25)}=6, similarly MR of 30 units.

Consequently, 25 units were produced and 12.5 units were produced.

Currently, XYZ breaks the agreement and produces three more so thus maximum quantity produced on a market = 25 + 5 = 30 and through the above table they see which if quantity = 30, price = 16.

XYZ produces 12.5 + 5 = 17.5 output from 30 units.

Cost Total = TVC + TFC

Total TVC = Total Cost for Variable TFC = Maximum Cost of TFC = 0.

If MC is stable, TVC = MC \times Q = 8 \times q, where Q = exposed to the real produced and XYZ produces 17.5 in this case.

Total expenditure (TC+) is TVC = TFC = 8 \times 17.5.

Take control = TR - TC = TC = 16 \times 17.5 - 8 \times 17.5 = 150.

So the business XYZ is profiting = 140

7 0
3 years ago
If you're introducing your boss, Mr. Schott, the company's president, to a visiting sales representative, Ms. West, you would sa
Paraphin [41]
Hi again!

I don't know why but I feel like your questions are funny at the same time.

Anywayz, the correct answer is option C

It shows friendship and trusted. And this is the best way to introduce someone.


I hope this helps!
8 0
3 years ago
Read 2 more answers
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