Answer:
cash flow = $13090
Explanation:
given data
Equipment cost= $70,000
Sales revenues = $42,500
operating costs = $25,000
Tax rate = 35.0%
solution
we know that MCAR for 7 % is
MCAR = 7% of 70000 = $4900
and
sale rev is 42000
so
EBITDA = sale rev - operating cost
EBITDA = 42500 - 25000
EBITDA = $17500
and
EBIT = 17500 - 4900
EBIT = 12600
and
tax is 35 % that is = 4410
and
PAT = EBIT - tax
PAT = 12600 - 4410
PAT = 8190
so
cash flow = 8190 + 4900
cash flow = $13090
C) Increase interest rates in order to decrease the money supply
During high inflation, the Federal Reserve will increase rates so that it is harder to borrow money and people will not spend as much of what they already have. The goal of this is to slow down economic growth (which is tied to inflation) in the short term.
The answer is 6250 buddy.
You're welcome
-From Hockey
Dividend is the amount of share in the earnings paid by the company to its shareholders for their investment in the company. So dividend is paid out of the earnings made by the company and it has no relation with the increase or decrease in the value of the stock.
Hence, If a company pays dividends on a stock, it does not mean that the stock has appreciated in value.
Answer:
7%
Explanation:
Interest income if Curtis invested
250,000 x 9% = 22,500
After tax interest income = 22,500 - (22,500 x 24%)
= 17,100
After tax rate of return = 17,100/250000
0.068
Approximately 7%
