Answer:
A service guarantee is a way to avoid compensating customers for a service failure.
Explanation:
Answer:
ROI for the year will be equal to 10 %
Explanation:
We have given to total sales = $1500000
Controllable margin = $220000
Total average assets = $2200000
And fixed cost = $60000
We have to find the ROI of the year
ROI is given by
= 10 %
So ROI will be equal to 10 %
Answer:
capital structure weight is = 0.349
Explanation:
Given data:
Number of share 10,700
per share price is $41
number of share of stock is 240
per share price of preferred stock is $92
number of bonds 570
coupon rate is 6% paid semiannually
mutuarity life of bonds is 22 year
face value of bonds is $1000
selling price 104.5% per par
common stock 
Preferred stock 
Bonds 
Total amount = 438,700 + 222,080+595,650 = 1,256,430
capital structure weight is 
Answer:
- $2,670.21
- $1,068.09
Explanation:
1. The payment is a fixed amount so is an annuity. Using the Future value of an annuity factor table, we can find the annuity factor for 18 years at 8%.
Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
100,000 = Payment * 37.4502
Payment = 100,000/37.4502
= $2,670.21
2. Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
140,000 = Payment * 37.4502
Payment = 140,000/37.4502
= $3,738.30
How much more would they pay = 3,738.30 - 2,670.21
= $1,068.09