Answer: $385800
Explanation:
The amount of the cash flow to creditors will be calculated thus:
Begining total liabilities = $225000
Ending total liabilities = $200000
Interest = $360800
Cash flow to creditors will be:
= Begining total liabilities - Ending total liabilities + Interest
= $225000 - $200000 + $360800
= $385800
Answer:
Value of the company = $124,019.61
Explanation:
<em>The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return. </em>
<em>In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity</em>.
The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.
And the value of the company would be determined as follows
Value of the company = Earnings after tax/Cost of equity
Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975
Cost of equity = 15.3%
Value of the company = 18975
/0.153= 124,019.6078
Value of the company = $124,019.61
Answer:
The income elasticity of demand for chocolate by this consumer is about 1.90
Explanation:
the change in quantity = (6 - 5)/(6 + 5)
= 0.091
the change in income = (330 - 300)/(330 + 300)
= 0.048
the income elasticity = 0.091/0.048
= 1.90
Therefore, The income elasticity of demand for chocolate by this consumer is about 1.90
I believe the answer is -A!
Have a Warm and Wonderful Day!!
Answer:
S corporation
Explanation:
In the given case, The eagle basis at the closing of the year is 70,000 i.e. $40,000 + $30,000 (50% of $60,000)
In the case when the entity was a general partnership so 50% of $10,000 i.e. $5,000 would be added to the basis of Eagle
So here the type of entity that was formed is S corporation
The same is relevant