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quester [9]
2 years ago
7

Robert a highly successful manager, quit his job in a large retail store so that he could start his own

Business
1 answer:
olga2289 [7]2 years ago
7 0

Answer:

Robert a highly successful manager, quit his job in a large retail store so that he could start his own

practice. He has been in his own business for a little over one year. He has a building and pays

$40,000 mortgage payments

He took out $200.000 which he had in a Time Deposit (CD) that was making 8% a year and put it in

his checking account that is making 0% Interest, He will use that money for the explicit cost

expenses he has for his new business which you will see in this problem

He must pay $7.000 a year in property taxes. He hired a contract software developer to write an

Inventory software system for $160,000 for the year. His revenues in the first year were $350.000.

Thomas earned $200.000 he was with that large retail form. He also got 560.000 a year in profit

sharing each year. His advertising for his first year came to $40,000. His electricity and gas usage

came to $20,000 for the year.

1. List the explicit costs and then list the implicit costs. Be sure to properly LABEL them so that

can give partial credit if you make a mistake.

2. For the year, his accounting profit for loss) is -

and his economic profit for loss) is

3. Did he make an economic profit an economic loss or did he break even? What does his economic

profit breakeven, or economic loss result mean?

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Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management pl
LUCKY_DIMON [66]

Answer:

Icarus total value: 478,459,899

Explanation:

We will calcualte the WACC to know the cost of capital for the company:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.14

Equity weight 0.79

Kd 0.07

Debt Weight 0.21

t 0.4

WACC = 0.14(0.79) + 0.07(1-0.4)(0.21)

WACC 11.94200%

Now we calcualte the value of the company:

\frac{FCF}{return-growth} = Intrinsic \: Value

59,000,000

<u> (21,000,000) </u>

38,000,000 Free Cash flow ofthe Firm

\frac{38,000,000}{0.11942-0.04} = Intrinsic \: Value

\frac{38,000,000}{0,07942} = Intrinsic \: Value

Value: 478.468.899

7 0
2 years ago
A company with technical support staff in another country mostly benefits from changes to:_______.
ANEK [815]

Answer:

a. regulations.

Explanation:

A company with technical support staff in another country mostly benefits from changes to regulations because regulation and compliance requirements affects businesses particularly during the phase of startup. For example developed economies have very stringent data protection laws which could be expensive to implement but you can choose a developing country with lax data protection laws to avoid certain expenses.

4 0
3 years ago
Read 2 more answers
Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment dep
kramer

The budget for the department, assuming that it uses flexible budgeting is: $89,000.

<h3>Total Department Costs</h3>

First step is to calculate the direct labor cost

Direct Labor =2350 hours x( $72,000/2400)

Direct Labor=$70500

Second step is to calculate the Total Department Costs

Total Department Costs=$70,500+$18,500

Total Department Costs=$89,000

Therefore the budget for the department, assuming that it uses flexible budgeting is: $89,000.

Learn more about Total Department Costs here:brainly.com/question/26656438

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8 0
2 years ago
What does a low interest rate indicate?
maks197457 [2]

Answer:

A) a poor salary

Explanation:

8 0
3 years ago
Which of the following is a true statement?A. Meals, lodging, and incidental expenditures are only deductible if the taxpayer is
aksik [14]

Answer:

A.

Explanation:

Meals, lodging, and incidental expenditures are only deductible if the taxpayer is away from home overnight while traveling.

5 0
3 years ago
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