30-minute launch window opens at 10:56 p.m.
Answer: 12.67%
Explanation:
The effective interest rate on a borrowing is the net annual interest cost divided by the net available proceeds from the borrowing. Dichter gross annual interest cost is $240,000 ($2,000,000 x 12%). Dichter is required to maintain a compensating balance of $400,000, which is $200,000 more than their normal balance of $200,000. Therefore, Dichter earns incremental annual interest revenue of $12,000 ($200,000 x 6%) on the excess compensating balance. The net annual interest cost is $228,000 ($240,000 - $12,000). The net available proceeds from the borrowing is $1,800,000 ($2,000,000 loan less $200,000 excess compensating balance). Therefore, the effective annual interest rate is 12.67%
Answer:
-13.562%
Explanation:
Data provided in the question:
Net operating profit margin (NOPM) = 11.4%
Net operating asset turnover (NOAT) = 3.83
Return on equity = 30.1%
Adjusted return on assets = 17.1%
Now,
Return on equity = Nonoperating Return + Return in net operating assets
or
Nonoperating Return = Return on equity - Return in net operating assets
Also,
Return in net operating assets = NOAT × NOPM
or
= 3.83 × 11.4%
= 43.66%
therefore,
Nonoperating Return = 30.1% - 43.66%
= 30.1% - 43.662%
= -13.562%
Answer: b. piercing the corporate veil.
Explanation:
Normally, corporations have limited liability which means that the assets of the shareholders are separate from that of the company and should the company go bankrupt for instance, the assets of the shareholders would be safe and only that of the company could be liquidated.
Sometimes however, the courts can remove this limited liability protection which would enable the assets of the shareholders to be targeted in what is known as "piercing the corporate veil".
There are several reasons this can happen for instance:
- Fraud by the owners
- Failure to follow formal corporate rules
- Inadequate capitalization of the company
- Use of company assets as private assets.
