Answer:
Cash flow generated from financing activities: 5,200,000
Explanation:
Financing activities are the cash outflow and inflow from the company's debt and equity. Take and repayment of debt, interest on debt and dividend yield will be included in this section:
Cash received from issuance of notes payable 8,000,000
Dividends paid on Gorky common stock (800,000)
Repayment of notes payable <u> (4,000,000) </u>
Cash flow generated from financing activities: 5,200,000
The machinery and planyt building are not financing activities. So we ignore them.
She will save about $267.27 ($2160.24 - $1892.97) in interest over the course of a year if she transfers her balance to a credit card with an apr of 10.8%, compounded monthly. This problem can be solved using the compounding interest formula which stated as A = P*(1+i)^n. A is the amount affected by the compounding interest, i is the interest rate, and n is the period of time. You must find the amount using the 24.2% and 10.8% compounding interest and find the difference between them.
Answer:
c. 12.56%
Explanation:
Debt-to-value=D/(D+E) =0.4=> D=0.4D + 0.4E => 0.6D = 0.4E => D/E=4/6=2/3
According to M&M proposition II with taxes,
re=r0+(D/E)(r0-rd)(1-Tax rate)
. Where re= levered cost of equity(or cost of equity when the firm is levered)=.1492, r0 = unlevered cost of equity,Tax rate=34%=.34, rd=pretax cost of debt=7.2%=0.072,D/E=2/3
re = r0+(2/3) * (r0 - 0.072)*(1-.34)
=> 0.1492=r0(1+(2/3)*(1-.34)) -(2/3)*(.072)*(1-.34)
=> 0.1492 = r0(1+0.44) -0.03168
=> 0.1492 = 1.44*r0 -0.03168
r0 = (.1492+0.03168)/1.44
r0 =0.1256
r0 =12.56%
Thus, r0=unlevered cost of equity=12.56%
Answer:
If company ABC is a much better career choice then you should accept the offer.
Explanation:
The main consideration in this scenario should be career growth. As a new graduate one will want to start with a company that has good training programmes and possibility for career growth.
The main consideration at this stage should not be the salary that is offered. While this is a good incentive, earning a good salary without progressing in your career will be a bad choice in the long run.
Answer and Explanation:
Nike
$18,627÷ ($2,494.7a+ $2,795.3b)/2
$18,627÷$2,645 = 7.0 times
Adidas
$10,299÷$1,415c+ $1,459d)/2
10,299÷$1 437= 7.2 times
2,566.2 – 71.5
b2,873.7 – 78.4
c1,527 – 112
d1,570 – 111
Average collection period
Nike
365÷7.0= 52.1 days
Adidas
365÷7.2
= 50.7 days
Therefore Adidas's accounts receivable turnover was about 3% higher [(7.2 – 7.0) ÷7.0] than that of Nike's, which simply means that Adidas was slightly more efficient than Nike in turning accounts receivable into cash.
