Mary will receive $12,000 per year for the next 10 years as royalty for her work on a finance book. What is the present value of

Answer:

The result is $12.

By applying the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Consequently, the total money generated in the banking system is $12. It can be concluded that money creation by banks is a mechanism whereby banks accept deposits from clients and provide loans to borrowers after subtracting the cash or reserve ratio.

Answer:

The interest amounts to $1,000,000.

Explanation:

The standard format of an income statement includes:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

For this case:

EBIT equals $6,000,000.

The interest is to be determined.

Tax is calculated as 0.40.

EBITDA stands at $3,000,000.

The interest formula is: interest = [EBITDA / (1 - tax)] - EBIT

Substituting values, interest = 3000000 / 0.60 - 6000000 = -$1,000,000.

With EBIT at 6 million, the interest is $1 million, and the tax amounts to 2 million (calculated as (EBIT - interest) * 0.40).

Thus, the net income is $3 million.

If you are inquiring about the welfare and subsidies in South Africa, I believe it would be beneficial for the government to increase welfare support in order to enhance educational quality. This investment will ultimately produce a workforce that is better qualified, thereby improving the overall conditions in South Africa.

I hope this is helpful.

1) Most likely, it's commission. Although both commissions and bonuses relate to sales performance, the fact that she receives them for each sale implies commissions, which are typically a recurring part of a pay system, as opposed to bonuses which are usually one-time payments. 2) Refers to a fixed salary. Hourly wages are generally associated with entry-level positions, whereas fixed salaries apply to higher-ranking or executive positions.