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storchak [24]
2 years ago
13

The+ebit+of+a+firm+is+$300,+the+tax+rate+is+35%,+the+depreciation+is+$20,+capital+expenditures+are+$60+and+the+decrease+in+net+w

orking+capital+is+$30. +what+is+the+free+cash+flow+to+the+firm?.
Business
1 answer:
-BARSIC- [3]2 years ago
4 0

Answer:

Answer:

$215

Explanation:

Eagles product has an EBIT of $400

Its tax rate is 30%

= 30/100

= 0.3

The depreciation is $16

The capital expenditures are $56

The planned increase in net working capital is $25

Therefore, the free cash flow to the firm can be calculated as follows

Free cash flow= EBIT(1-tax)+depreciation-capital expenditures- change in working capital

= 400(1-0.3)+16-56-25

= 400-120+16-56-25

= $215

Hence the free cash flow to the firm is $215

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Price ceiling are measure employed by government to help the consumers by mandating a maximum price that the seller must charge for a product or service.

  • The measure of imposing price in market are rare but are notably used during natural disasters.

  • Price ceiling helps to prevent the producers from exploiting the consumers.

In conclusion, the major disadvantage of price ceiling is that when a price ceiling is set below the equilibrium price, the quantity demanded will exceed quantity supplied, thus, this will result to excess demand of goods and shortage in the market.

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3 years ago
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter &amp; Gamble (PG), a
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Answer:

Explanation:

The direct material cost is the cost which is incurred for the raw material

The direct labor cost is the cost which is incurred to pay the wages to assembly workers, the labor cost, etc

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So, the categorization is shown below:

a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant = factory overhead cost

b. Licensing payments for use of Disney characters on children products = factory overhead cost

c. Maintenance supplies = factory overhead cost

d. Packaging materials = direct material cost

e. Paper used in bath tissue  = direct material cost

f. Plant manager salary for the Iowa City, Iowa, plant = factory overhead cost

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3 years ago
MARKING BRAINLIEST
Grace [21]
B and E is the answer
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3 years ago
An invention that raises the future marginal product of capital in a closed economy) would cause an increase in desired investme
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3 years ago
Suppose your expenses for this term are as​ follows: tuition:​ $28,000, room and​ board: $9,000, books and other educational​ su
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Answer: Option C is correct

Explanation:

Opportunity cost or loss is the contribution lost due to the leaving one opportunity to exploit the other one. So in this case, the opportunity that I am going to exploit is going to college this term. So according to relevant costing the relevant cost is:

(a) Cash flow in nature.

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To find whether the cost is incremental cost or not we can find through the following method.

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For this Term:

                                                    Step 1              Step 2             Step 3

                                             Take Decision    If we Don't     Incremental

Salary loss (42-16)                    (26,000)                -                   (26,000)

Tuition cost                               (28,000)                -                   (28,000)

Room and Board                       (9,000)                 -                    (9,000)

Books and Edc. Supplies          (2,500)                 -                    <u>(2,500)</u>

TOTAL COSTS                                                                            <u>(65,500)</u>

<u></u>

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