Answer:
Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. (A)
Explanation:
Option A- This statement is true.
Option B- This is false. After-tax operating Income is calculated as Operating profit less interest less Depreciation and less tax
Option C-This is false. They will have the same operating incomes. Operating income is calculated as Sales less operating cost.
Option D- False.
Option E- False.
Answer:
The correct answer is letter "C": a tie-in sale.
Explanation:
A tie-in sale is one where the purchase or rent of an object is only possible if another is also bought. Companies tend to use this practice to offer goods and services in bundles where all the products being sold are not necessarily of interest to the buyer but generates more profit or the seller.
Answer:
The correct option is B
Explanation:
In order to compute the profit, the accountant consider the Explicit cost so,
Explicit Cost = Borrowed amount × Interest rate + Ingredients amount
= $30,000 × 3% + $25,000
= $259,000
Where Revenue is $60,000
Profit = Revenue - Explicit Cost
= $60,000 - $259,000
= $34,100
Economic Profit is computed as:
Economic Profit = Total Profit - Implicit Cost
= $34,100 - $40,600
= - $6,500
where
Implicit Cost = Salary + Interest
= $40,000 + ($20,000 × 3%)
= $40,000 + $600
= $40,600
Therefore, Louis says profit is $34,100 and Greg says she lost $6,500
Answer:
$1120
Explanation:
The computation of the GDP is shown below:
Y = C + I + G + X
Here Y denotes the GDP
C denotes the consumption = $500 - $80 - $20 = $400 and 700 - 50 = $650
I denotes the investment = $
G denotes the government purchase = $20
X denotes the net exports = $50
So,
Y = $400 + $650 + 0 + $20 + $50
= $1120
Answer: India / 11.1years
Explanation:
Per capita income (PCI) or average income measures or calculate the average income earned per person in a given place (country,city, region etc.) in a particular year. It can be calculated by dividing the area's total income or wealth by its total number of population.
India's GDP will increase or double than that of China's, because is has a larger income than that of China.
