Answer:
<u>Cash flows from operating activities 271,000</u>
Explanation:
net income 250,000
depreciation +40,000
amortization +9,000
Net Income adjusted 299,000
↑AR -4000
↑Inventories -12,000
↓Prepaid Expenses 2000
↓AP -14,000
Changes in working capital -28,000
Cash flows from operating activities <em>271,000</em>
Answer:
c. 11%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs. weightage can be calculated by using the market value of the equity and debt.
The formula for WACC is
Weighted average cost of capital = (Cost of equity x Weightage of equity) + (Cost of debt (1 - tax ) x Weightage of debt)
Weighted average cost of capital = (12% x 80%) + (10% ( 1-0.3 ) x 20% )
Weighted average cost of capital = 9.6% + 1.4% = 11%
Answer:
A credit union
Explanation:
As it says in Chapter 5,
"The financial institutions that most people use serve as intermediaries between suppliers (savers) and users (borrowers) of funds. These deposit-type institutions include commercial banks, savings and loan associations, mutual savings banks, and credit unions" (p. 7, or 142)
The rest are other financial institutions
"Financial services are also available from institutions such as life insurance companies, investment companies, finance companies, mortgage companies, pawnshops, and check-cashing outlets" (p. 9, or 144)
Answer:
If government regulators guarantee the natural monopolist that it will earn a normal profit, then, the monopolist will not have any incentive to hold down costs.
Explanation:
Normal profits are the profits that allow a business to cover its total costs: both explicit costs and implicit costs. Explicit costs are those that have to be paid explicitely, for example: rent or wages, while implicit costs are the opportunity costs of not running a business.
If the natural monopolist has a government guarantee that it will always make a normal profit, then, it will not have any incentive to reduce costs, whether explicit costs or implicit costs.
Answer:
$11.625
Explanation:
We can obtain this figure by multiplying the regular hourly rate by 50%:
$7.75 x 50% = 3.875
3.875 is the half that we must add to the regular hourly rate to obtain the Sunday hourly rate:
$7.75 + $3.875 = $11.625