Answer:
10.52%
Explanation:
The computation of the annual financing cost is shown below:
First we have to calculate the interest cost that is shown below:
= $20,000 × 10% × 182 days ÷ 365 days
= $997.26
Now the used funds is
= $20,000 - $997.26
= $19,003
Now the annual financing cost is
= ($997 ÷ $19,003) × (365 days ÷ 182 days)
= 10.52%
We assume there are 365 days in a year
Answer:
yeah sure what do you want to ch.At about
Explanation:
because i don't really care what we talk abt
Answer:
$31 million
Explanation:
The computation of the amount of cash paid to suppliers of merchandise during the reporting period is shown below:
= Costs of goods sold + increase in inventory - increase in accounts payable
= $33 million + $3.8 million - $5.8 million
= $31 million
The Costs of goods sold + increase in inventory is also known as purchase of inventory
Answer:
1.71 household items
Explanation:
In this question, we learn that the family will only consume two goods: outings and household items. The family can either have access to 14 outings or 24 household items. This means that:
opportunity cost of 14 outings = opportunity cost of 24 household items
Therefore,
opportunity cost of 1 outing = 1.71 household items
Solution :
a). The current market value of the unlevered equity
= $ 40.45 million
b). The market value of the equity one year from now is
= $ 44.5 million - $ 18 million
= $ 26.5 million
c). The expected return on the equity without the leverage = 10%
The expected return on the equity with the leverage =
= 0.93 %
d). The lowest possible value of equity without the leverage = $20 million - $ 18 million
= $ 2 million
The lowest return on the equity without the leverage = 10%
The lowest return on the equity with the leverage = 2 % as the equity is eroded.