Answer:
$1,135.05
Explanation:
Given:
Sales = $15,900
Net new equity = $500
Dividend payments = $75
Retained earnings = $418
Depreciation = $680
Interest expense = $511
Tax rate = 21% = 0.21
Now,
Net income = Retained earnings + Dividend payments
= $418 + $75
= $493
Profit before tax = Net income ÷ ( 1 - tax rate )
= $493 ÷ ( 1 - 0.21 )
= $624.05
Therefore,
Earnings before interest and taxes
= Profit before tax + Interest expense
= $624.05 + $511
= $1,135.05
Answer:
the YTM of the bond is 127.55 %
Explanation:
The YTM of the bond is the Market return that similar Bond Holders expect from the bond.
This can be calculated using a Financial calculator as :
PV = - $ 110.547
FV = $2,000
PMT = $2,000 x 7.05 % x 1/2 = $70.50
N = 19 x 2 = 38
P/yr = 2
YTM = ???
Therefore, the YTM of the bond is 127.55 %
Answer:
Hart's note should be reported at $10,000 and Maxx's note should be reported at $7,820
Explanation:
Since Hart's note is a current note (due within one year) it should be reported at future value = $10,000
Marxx's note must be reported at present value:
present value = future value x discount factor = {$10,000 [1 + (3% x 5)]} x 0.68
present value = $11,500 x 0.68 = $7,820
*we use simple interest to calculate the future value of Marxx's debt since Jet Co. doesn't charge compound interest
Answer:
d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
Explanation:
a)The opportunity cost of 1 lb. of bananas is 4 lbs. of coffee for Oscar.
In order to produce 64 pounds of banana, Oscar has to give up producing 16 pounds of coffee, his opportunity cost is:
The statement is false.
b)Oscar has absolute advantage in the production of coffee.
Julia has a higher production capacity for coffee (20 pounds to 16 pounds) and therefore has the absolute advantage.
The statement is false.
c)Julia has comparative advantage in the production of bananas.
Julia has a higher opportunity cost for producing a pound of bananas (0.5 pounds of coffee to 0.25 pounds of coffee) and therefore does not have the comparative advantage.
The statement is false.
d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
In order to produce 16 pounds of coffee, Oscar has to give up producing 64 pounds of banana, his opportunity cost is:
The statement is true.
Answer: E
Explanation:Self-managed work teams represent an approach to organizational design that goes beyond quality circles or ad hoc problem-solving teams. These teams are natural work groups that work together to perform a function or produce a product or service. They not only do the work but also take on the management of that work functions formerly performed by supervisors and managers. This allows managers to teach, coach, develop and facilitate rather than simply direct and control. In a self Self-managed work teams there’s decrease position take on supervision .
