Answer:
The correct answer is "$9450".
Explanation:
Given:
Payoff from investment,
= $6000
Lending to bank,
= 
= 
Now,
At 15% interest,
The amount to be received from bank will be:
= 
= 
= 
= 
($)
hence,
In her old age, most she can assume will be:
= 
= 
($)
Answer:
Rises
Explanation:
If labor demand is downward sloping and labor supply is upward sloping , then when labor demand rises faster than labor supply , it is expected that real wages rises.
Labor demand is downward sloping means the demand for labor in the market is less as compared to the supply of labor which is high as compared to its supply so when the demand starts rises faster as compared to the supply then the available labor been less in quantity gets a chance to demand for high wages because of monopoly competition .
<span>Answer:
At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole.
units
At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole.
Old plan units
New plan with debt financing units
New plan with stock financing units
On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places.
EPSDebt = $
EPSStock = $</span>
Answer: Option (c) is correct.
Explanation:
Given that,
Round off the values of items to the nearest half dollar are as follows:
Item 1 = $2.00
Item 2 = $1.00
Item 3 = $3.50
Item 4 = $10.00
Item 5 = $6.00
Estimated total cost of items = Item 1 + Item 2 + Item 3 + Item 4 + Item 5
= $2.00 + $1.00 + $3.50 + $10.00 + $6.00
= $22.50
Hence, nearest value is $22.50.
Therefore, option (c) is correct.
Answer:
Total Fixed costs: $
Rent 2,000
Utilities 700
Salaries 2,950
Advertising 50
Total fixed cost 5,700
Contribution per car = Selling price - Unit variable cost
= $10.50 - $2.50
= $8.00 per car
Break-even point in full-service car
= <u>Total fixed cost</u>
Contribution per car
= <u>$5,700</u>
$8.00
= 712.5 = 713 cars
Explanation:
Break-even point in full-service car equals total fixed cost divided by contribution per car. Contribution per car is selling price minus variable cost per car.
