Answer:
$587,500
Explanation:
You are required to calculate the value of the levered firm;
vL = vU + Dt, whereby;
vL = Value of levered firm
vU = value of unlevered firm
Dt = debt * tax ; which is the tax shield
Find value of unlevered firm;
vU = [EBIT(1-tax) ]/ rE
= [100,000(1-0.30)] / 0.16
= 437,500
Value of levered firm;
vL = 437,500 + (500,000*0.30)
= 437,500 +150,000
= $587,500
Answer and Explanation:
The computation is shown below:
The formula is
APR = P × {(EAR + 1 )^(1 ÷ P) - 1}
1. For semi annually
= 2 × (0.106 + 1)^(1 ÷ 2) - 1}
= 10.33%
2. For monthly
= 12 × (0.115 + 1)^(1 ÷ 12) - 1}
= 10.93%
3. For weekly
= 52 × (0.092 + 1)^(1 ÷ 52) - 1}
= 8.81%
4. For infinite
= 365 × (0.129 + 1)^(1 ÷ 365) - 1}
= 12.10%
Answer:
(a) $546,300
(b) $12.88
Explanation:
(a) Earnings available to common stockholders:
= Dividend + Retained Earnings
= 33,300 + 513,000
= $546,300
Earnings available to common stockholders means the amount available to distribute as dividend.
But the company need not pay full earnings as dividend. They may left some portion as retained earnings.
(b) Earnings per share:
= Earnings available to common stockholders ÷ no. of shares of common stock
= $546,300 ÷ 42,400
= $12.88
Answer:
The store manager is 95% confident that the average amount spent by all customers is between $ 31.84 and $ 38.66.
Explanation:
In statistics, a confidence interval is the probability that the parameter of a population lies between two set of values when a random sample of the population is drawn for a specific percentage of times. This means that the confidence interval is formed about the whole population not the sample from which it is calculated.
The probabilities of a confidence interval can take any number, but 95% and 99% confidence level that are usually used.
It should be noted that, for example, 95% confidence level implies that there is a 95% chance that the true mean of the population lies within the calculated confidence interval.
Therefore, the statement which gives a valid interpretation of the interval in the question is the first one which states that "the store manager is 95% confident that the average amount spent by all customers is between $ 31.84 and $ 38.66."
I wish you the best.
This implies that the work would take longer as well, making the product cost more
