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Lena [83]
2 years ago
13

Jolene is graduating from high school in May. She received this offer from a university. Financial Analysis for University Costs

per Year Financial Aid Package per Year Tuition & Fees Scholarships & Grants $9,800 $11,000 Room & Board Work-Study $12,500 $5,000 Which statements about the offer are true? Check all that apply. The total cost per year is $22,300. She will need to repay $16,000 for each year of college. Financial aid will cover $16,000 for each year of college with no need to repay. Financial aid will cover $11,000 for each year of college with no need to repay. She could use money from savings or parental contributions to pay the remaining $6,300 each year. She could use a student loan to pay the remaining $6,300 each year.
Business
2 answers:
goblinko [34]2 years ago
7 0

Answer:

Explanation:

Per year is $22,300 the total.

Remaining money is $6,300 each year.

Financial aid will cover $16,000 for year of college.

She could use a student loan to pay the remaining.

kobusy [5.1K]2 years ago
6 0

Answer:

The total cost per year is $22,300.

Financial aid will cover $16,000 for each year of college with no need to repay.

She could use money from savings or parental contributions to pay the remaining $6,300 each year.

She could use a student loan to pay the remaining $6,300 each year.

Explanation:

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Calculate the net income earned during the year. Assume that the change to stockholder's equity results only from net income ear
Nutka1998 [239]

Answer:

The net income earned during the year is $ 5,000

Explanation:

The first point to kn ow is the accounting equation is A=L+SE

So to calculate the opening stockholders equity we can rearrange the accounting equation to be:

A-L = SE

so opening SE is

Assets $ 50,000 - Liabilities $ 40,000 =  Stockholders Equity $ 10,000

Ending Stockholders equity is:

Assets $ 35,000 - Liabilities $ 20,000 = Stockholders Equity $ 15,000

Since the question mentions that the change in stockholders equity is only due to net income, the increase of $ 5,000 represents the net income for 2019.

7 0
2 years ago
The CFO of Mulroney Brothers has suggested that the company should issue $300 million worth of common stock and use the proceeds
Pani-rosa [81]

Answer: A. The company's net income will increase.

Explanation:

Based on the above scenario, the net income of the company will increase. From the new issue, it should be noted that there will be redemption of debt and therefore, there'll be reduction in the debt which will lead to lower interest expense.

It should be noted that the net income, which is also referred to as the net earnings, is simply the sales minus the cost of goods sold, interest, taxes and the general expenses. Since there's a lower interest expense, there'll be a rise in net income.

8 0
2 years ago
Pendergast, Inc., has no debt outstanding, and has a total market value of $180,000. Earnings before interest and taxes (EBIT) a
satela [25.4K]

Answer:

See the explanation below:

Explanation:

a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued.

Under an expansion

Earnings before interest and taxes (EBIT) = $23,000 * (100% + 20%) = $27,600

Earnings after taxes = $27,600 * (100% - 35%) = $17,940

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $17,940 / $180,000 =

0.0997, or 9.97%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $17,940 /

6,000 = $2.99 per share

Under a recession

Earnings before interest and taxes (EBIT) = $23,000 * (100% - 30%) = $16,100

Earnings after taxes = $16,100 * (100% - 35%) = $10,465

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $10,465 / $180,000 =

0.0581, or 5.81%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $10,465 /

6,000 = $1.74 per share

b- Repeat part a, assuming that the company goes through with the capitalization.

Under an expansion

Earnings before interest and taxes (EBIT) = $23,000 * (100% + 20%) = $27,600

Interest on debt = $75,000 * 7% = $5,250

Page 2 of 2

Earnings after interest = $27,600 - $5,250 = $22,350

Earnings after taxes = $22,350 * (100% - 35%) = $14,527.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $14,527.50/ $180,000 =

0.0807, or 8.07%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $14,527.50 /

6,000 = $2.42 per share

Under a recession

Earnings before interest and taxes (EBIT) = $23,000 * (100% - 30%) = $16,100

Interest on debt = $75,000 * 7% = $5,250

Earnings after interest = $16,100 - $5,250 = $10,850

Earnings after taxes = $10,850 * (100% - 35%) = $7,052.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = $7,052.50 / $180,000 =

0.0392, or 3.92%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = $7,052.50 /

6,000 = $1.18 per share

c- Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage change under expansion = ($2.42 - $2.99)/$2.99 = 0.1902 decrease, or 19.02% decrease.

Percentage change under recession = ($1.18 - $1.74)/ $1.74 = 0.3218 decrease, or 32.18% decrease

5 0
2 years ago
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Orlov [11]

Answer:

Market : Gasoline

b. Standardized good

c. Full information

e. Participants are price takers.

Market : Barbershop haircuts

a. Large number of buyers

c. Full information

Market : Bicycles

a. Large number of buyers

b. Standardized good

c. Full information

d. No transaction cost

Explanation:

The three markets will have different characteristics which will cause the competition. The Gasoline market has standardized product and the customers are price takers. Usually the prices are fixed for the products and there is no bargaining.

7 0
2 years ago
When using a grid analysis to weigh your options, how can bias be introduced?
Nookie1986 [14]

Answer:

Grid analysis is a brilliant chance to consolidate conceptualizing to consider the significance of different variables that affect a determination choice. The choice of another provider can be a laborious procedure, and the significance of the choice is inarguable.

Explanation:

8 0
2 years ago
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