Response:
It is estimated that between 1100 and 1300 high school students in Detroit could obtain a gun if they desired to do so.
Rationale:
For the lower boundary, take 55% of 2000, which equals 0.55 × 2000 = 1100.
For the higher boundary, take 65% of 2000, equaling 0.65 × 2000 = 1300.
Therefore, the calculated range of students in Detroit who could obtain a firearm is from 1100 to 1300.
Answer:
C) $88,000
Explanation:
A period cost refers to expenses that cannot be capitalized through inventory or other assets.
Under the variable costing method, fixed costs are classified as period costs.
Fixed costs:
Fixed manufacturing overhead: $60,000
Fixed selling and administrative expense: $28,000
Answer:
Explanation:
The statement of stockholders' equity comprises common stock along with retained earnings. The final figures presented in the attached spreadsheet have been updated.
The Final balance of retained earnings = Initial balance of retained earnings + net income - dividends disbursed
Additionally, the Final balance of common stock = Initial balance of common stock + stock issued
The stockholders' equity statement for the end of the year on December 31, 20Y7 is included in the spreadsheet. See the attachment below:
Answer: $25,000 after 12 years = 25,000*(1.09)^12= $70,316
The value of $7,500 deposits after 6 years
Input these values using a financial calculator
N=6
PV=0
PMT=7,500
I=9
Then calculate FV= $56,425, subsequently
PV= $56,425
PMT= $15,000
I=9
N=6
Compute FV=$ 207,480
We will accumulate (207,480 + 70,316) = $277,796 after 12 years to launch our business.
Explanation:
Response:
The valuation of the levered firm amounts to $846,506
Details:
The valuation for the levered firm is derived from the total present value of future income expected by shareholders, calculated using the unlevered firm’s capital cost, and benefits from debt financing in terms of tax reductions.
Equity value is determined by the equation: Profit before tax * (1 - Tax) / Cost of capital
Tax benefits equal the product of debt value and tax rate
Substituting the known figures into the two equations yields:
Equity value = $138,000 (1 - 34%) / 13% = $669,706
The tax benefit from debt = $520,000 * 34% = $176,800
Thus, the value of the levered firm = $669,706 + $176,800 = $846,506
