Answer:
$30, 154.50
Explanation:
For compute the maximum amount, we need to calculate the present value which is shown below:
Present value would be
= Paying amount for five years × PVIFA factor at 11.2% for 5 years
= $8,200 × 3.6774
= $30,154.68 approx
Simply we multiplied the paying amount with the PVIFA factor to get the maximum paying amount
And, refer to the PVIFA table
Answer:
EPS
Plan I $2.03 per share
Plan II $1.78 per share
Explanation:
Plan I
As this plan is all equity plan, so there is no debt and no interest expense as well.
In the absence of taxes, We will use the EBIT in the calculation of EPS
EPS = Net Earning / Outstanding numbers of shares = $375,000 / 185,000 = $2.03 per share
Plan II
In this levered plan we have debt and equity combination. We also have to deduct the interest expense from EBIT to calculate the net income.
Interest Expense = $2,700,000 x 5% = $135,000
Net Income = EBIT - Interest Expense = $375,000 - $135,000 = $240,000
EPS = Net Income / Outstanding numbers of shares = $240,000 / 135,000 = $1.8 per share
Answer:
Depreciation Expense for 2019 using form 4562
Basis For depreciation; Recovery Period ; Convention ; Method ; Depreciation deduction
2,000 ; 5 years ; HY ; 200 DB ; 400
40,000 ; 7 years ; HY ; 200 DB ; 6,573
Explanation:
Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.
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Answer: c) if the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology.
Explanation:
When firms expand into international markets, it is a standard practice to partner with a local company that already has expertise in the market to enable an easier transition.
This creates a problem however because in partnering with the company, the competitive advantage that the company holds could be at risk. This is even more so if the competitive advantage is based on proprietary technology and by entering into a partnership and giving another company access to that technology, there is a risk that control could be lost.
