Answer:
The correct answer is D.
Explanation:
Giving the following information:
Earnings before interest and taxes (EBIT) = $700 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) = $850 million.
Interest expense = $200 million.
The corporate tax rate is 40 percent.
First, we need to determine the depreciation expense.
Depreciation= EBITDA - EBIT= 850 - 700= 150million
Net cash flow= EBIT - Interest - Tax + Depreciation
EBIT= 700
Insterest= 200 million (-)
EBT= 500
Tax= 500*0.40= 200 (-)
Depreciation= 150 (+)
Net cash flow= 450 million
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Production and sales estimates for April are as follows: Estimated inventory (units), April 19,000 Desired inventory (units), April 30 18,000 Expected sales volume (units): Area 3,000 Area 4,750 Area 4,250
Production:
Sales= 12,000
Ending inventory= 18,000
Beginning inventory= (19,000)
Total= 11,000 units
Answer:
The correct answer is ()D.Bond A.
Explanation:
From the question provided, the bond that will be delivered is Bond A.
The reason is that, The bond A has the highest conversion factor when measured to other bonds and must be delivered.
The Bond A prices and conversions factors with its delivery date will be get there on time before other bonds, because of its high rate.
Answer:
Rational Consumer Jim will consume at utility maximising Consumer Equilibrium product combination : 4 Units of Nuts , 8 Units of Apples .
Explanation:
Consumer is at equilibrium where : Budget Line is tangent to Indifference Curve & hence their slopes are equal i.e MRS (NA) = P(N) / P(A)
As per qstn given details : A / N = 10 / 5 implying A/N = 2 i.e A = 2N
Putting this in Budget Constraint: Price of goods x Quantity of goods = Income
[P(A) x Q(A)] + [P(N) x Q(N)] = Y
10A + 5N = 100
10 (2N) + 5N = 100 <em> [</em>S<em>ince A = 2N] </em>
<em>20N + 5N = 100 </em>
<em>25N = 100 </em>
<em>N = 4 ; A = 8 [Since A = 2N] </em>
Answer:
c. half of the order quantity
Explanation:
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is <u>half of the order quantity</u>
Economic order quantity is a quantity which minimizes the ordering cost and holding cost
Q = EOQ = where D = Demand unit, S = Order cost and H = Holding cost
- Ordering cost and the Holding at EOQ will be same
- Average inventory = Q/2
- Average inventory is the half of the order quantity.