Answer:
a) A gain is subtracted from net income.
d) An increase in operating current assets is subtracted from net income.
e) A decrease in operating current liabilities is subtracted from net income.
Explanation:
Operating activities: It involves those transactions that affect the after-net income working capital. It would subtract the rise in current assets and a decrease in current liabilities while add a decrease in current assets and an increase in current liabilities.
It would modify those changes in working capital. For addition, the depreciation costs are added to the net income and the loss on the sale of assets is applied, while the gain on the sale of assets is excluded
So, the following options are used-
a) A gain is subtracted from net income.
d) An increase in operating current assets is subtracted from net income.
e) A decrease in operating current liabilities is subtracted from net income.
Answer:
The answer is b) rise in price to target desperate last minute buyers.
Explanation:
Last minute buyers would buy the tickets despite the increase in price. Revenue is likely to be maximized from the premium in the tickets' price.
Answer: Employee separation
Explanation:
From the question, we are informed that Jayden, a salesman at Srastis, a company that sells home appliances, did not achieve his sales targets for three consecutive quarters, and that his manager asked him to resign.
In the context of human resource planning, this scenario best illustrates employee separation. Employee separation has to do with situation whereby the services of an employee is no longer needed by an organization.
Answer:
The unlevered value of the firm is $869325.15
Explanation:
For computing the value of unlevered firm, the following formula should be used which is shown below:
Value of levered firm = Earning before interest and taxes × (1 - tax rate) ÷ cost of equity
where,
Earnings before income and taxes are $218,000
Cost of equity is 16.3%
And, the tax rate is 35%
Now put these values on the above formula
So, the value would be equals to
= $218,000 × (1 - 0.35) ÷ 16.3%
= $141,700 ÷ 16.3%
= $869325.15
The other terms like bonds and the annual coupon should not be considered in the computation part because we have to calculate for unlevered firm which only includes equity and the bond is a debt security. Thus, it is irrelevant.
Hence, the unlevered value of the firm is $869325.15
