Answer:
Option (A) is correct.
Explanation:
Given that,
After-tax IRR on total investment in the property = 9.0%
Before-tax IRR on equity invested = 17%
Before-tax IRR on total investment in the property = 12%
t: Marginal tax rate = 0.40
Break Even Interest rate (neither favorable nor unfavorable):
= After tax IRR on total investment ÷ (1 - Tax rate )
= 9% ÷ (1 - 0.40)
= 9% ÷ 0.60
= 15%
Answer
The number of shares.
Explanation
Cash Dividend is the amount of money paid to stakeholders as part of the firm’s current earnings. Cash dividends are applied by companies to return capital to shareholders in a manner of periodic cash payments. Cash dividends are paid on a per-share basis. To figure out Jackson’s cash dividend, we require to know the share number and multiply it by the per share dividend for each quarter.
Operating assets $164,101 $153,211
Operating liabilities 120,785 114,836
Net cash flow from operations 46,709 39,540
Net operating profit after tax (NOPAT) 33,371 31,742
Discount factor 6.0% 6.0%
What are the company's free cash flows to the firm (FCFF) for 2017?
A. $28,430
B. $24,638
C. $28,907
D. $25,797
E. None of the above
Answer:
Option (A) is correct.
Explanation:
Net Operating assets in 2017:
= Operating assets - Operating liabilities
= $164,101 - $120,785
= $43,316
Net Operating assets in 2016:
= Operating assets - Operating liabilities
= $153,211 - $114,836
= $38,375
Increase in net operating assets:
= $43,316 - $38,375
= $4,941
Company's free cash flows to the firm (FCFF) for 2017:
= Net operating profit after tax 2017 - Increase in net operating assets
= $33,371 - $4,941
= $28,430
Unlike supportive leadership, participativeleadership is used when the formal authority system is clear.
Participative leadership is based on getting engagement and involvement of employees in the decision-making process. This style enables employees to feel motivated and belonged to the organization.
Therefore, this is usually incorporated in big organizations where there are more layers of hierarchy, which calls for collaboration of employees as all role and authority is clearly defined.
Learn more about leadership here:
Answer:
b.
Explanation:
Answer:
the income is $1,330
Explanation:
The computation of the income is shown below;
Given that
U(x, y) = min{x, y2}
Price of x is $25
ANd, the prcie of Y is $15
So,
25X + 15Y = M
if Y = 7,
So,
At eqm, X = Y^2 = 49
Then ,
M = 25 × 49 + 15 × 7
= 1225 + 105
= 1330
Hence, the income is $1,330
The same should be relevant and considered too
For utility maximization, Elmer's income should be $1330, considering his consumption of 7 units of y at $15 each and a maximum of 49 units of x at $25 each.
To find Elmer's income for utility maximization, we need to consider his utility function, the prices of the goods (x and y), and the quantity of y he chooses to consume.
Elmer's utility function is U(x, y) = min{x, y^2}, which means his utility depends on the minimum of x and y^2. In this case, he chooses to consume 7 units of y at a price of $15 each, so his expenditure on y is 7 * $15 = $105.
Now, we need to find out how much he is willing to spend on x to maximize his utility. Since the utility function takes the minimum of x and y^2, we want to make x as small as possible to keep utility high. Let's assume he consumes x units of x.
For utility maximization, x must be the minimum between x and y^2. In this case, x <= y^2, so x <= 7^2 = 49.
Now, we need to find the price of x, which is $25 per unit.
To maximize utility, he should spend his remaining income on x, so his income (I) should satisfy:
I = expenditure on x + expenditure on y
I = (x * $25) + ($105)
We know that x <= 49, so let's assume he consumes the maximum possible x, which is 49. Therefore,
I = (49 * $25) + ($105)
I = $1225 + $105
I = $1330
So, Elmer's income for utility maximization should be $1330.
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Complete question below :
If Elmer's utility function is U(x, y) = min{x, y^2}, and he chooses to consume 7 units of y at a price of $15 each, what must his income be for utility maximization?
Answer:
° Fiscal policy
° Monetary policy
° Exchange rate policy
Explanation:
Macro economics policy are tools used by a country's government through their central bank to influence the supply of money, control interest rate in their economy which will lead to economy stability and growth. The tools are explained below. An increase in government spending will make funds available to the household and firms hence increases the volume of money supply in the economy, while a decrease in government spending will also reduce the availability of money to household and firms.
° Fiscal policy . This refers to the use of tax and government expenditure to regulate the supply of money an economy. For instance, government through its central bank uses tax cut to increase the flow of money in an economy. Also, if the government feels that the supply of money in circulation is too much, which could result in inflation, government can increase taxes to be paid by individuals, firms and businesses which in turn will reduce the availability of money.
° Monetary policy. Monetary policy refers to various tools used by the government to control the flow of money in an economy, which includes open market operation, special reserves, interest rate adjustment. For instance, the government through CBN could buy or sell government issued securities which will ultimately affect the supply of money in an economy. Also, there is usually a minimum amount of reserves which must be held by commercial banks, which ultimately affects the supply of money. An increase in reserve ratio reduces the ability of banks to lend money to their customers while and a reduction in the reserve ratio increases their ability to lend to the public hence increases money supply.
° Exchange rate policy. The value of a country's currency in relation to other country's currency is referred to as exchange rate. Exchange rate policy is used to control inflation, preserve the value of domestic currency and also to maintain a favorable external balance of payments of a country.
Answer: $104,360
Explanation:
The cash collections for June will be;
= June Cash sales + (50 % *June credit sales ) + (43% * May credit sales) + ( 5% of April credit sales)
= 58,000 + (0.5 * 55,000) + (0.43 * 42,000) + ( 0.05 * 16,000)
= 58,000 + 27,500 + 18,060 + 800
= $104,360