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1 year ago

An owner had a profit margin of 50,000 last year.

Business

2 answers:

AnnZ [28]1 year ago

5 0

Answer: 95%

Explanation: If an owner had a $50,000 profit margin last year and did not have any additional expenses but received $1,168,000 her profit margin margin would be 95%.

To solve:

Gross profit = $1,168,000 - 50,000 = $1,118,000

Profit margin = 1,118,000/1,168,000 x 100 = 95%

babunello [35]1 year ago

3 0

1,200,000 is the answer i think, depends 2 what it rounds 2

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Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou

fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

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2 years ago

In China, Starbucks is standardizing its operations while simultaneously decentralizing some decision-making responsibility to l

VashaNatasha [74]

Answer:transnational is the answer

Explanation:have a great day

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1 year ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

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2 years ago

Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem

Westkost [7]

Answer and Explanation:

In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.

Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.

If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.

Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.

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2 years ago

ou currently own 10 percent of the 3.0 million outstanding shares of Webster Mills. The company has just announced a rights offe

REY [17]

Answer: 9.09% ownership

Explanation:

Your current ownership of the shares in Webster Mills is 10% of 3 million.

That means that you own,

= 10% * 3 million

= 300,000 shares.

The new offering that the company is doing equates one right to each share of existing stock and is expected to raise $12 million in new financing at a cost of $40. The goal is to find out how many new shares this will add.

= 12,000,000/40

= 300,000 shares

This means that 300,000 new shares will be added.

There are already 3,000,000 shares outstanding and now there are 300,00 extra which would bring the total to,

= 3,000,000 + 300,000

= 3,300,000 outstanding shares.

Since you sold your rights then you still have shares but now your percentage of ownership will change because of the increase in outstanding shares.

Your ownership percentage is now,

= 300,000 shares (that you own) / 3,300,000 (new outstanding balance)

= 0.0909

= 9.09%

Your new ownership position is that you own 9.09% of Webster Mills.

8 0

1 year ago