Business, 19.10.2020 21:01, zoieihazel
Consider the following case of Happy Turtle Transportation Company: Suppose Happy Turtle Transportation Company is considering a project that will require $350,000 in assets.
• The project is expected to produce earnings before interest and taxes (EBIT) of $40,000.
• Common equity outstanding will be 25,000 shares.
• The company incurs a tax rate of 35%.
If the project is financed using 100% equity capital, then Happy Turtle’s return on equity (ROE) on the project will be: . In addition, Happy Turtle’s earnings per share (EPS) will be . Alternatively, Happy Turtle Transportation Company’s CFO is also considering financing the project with 50% debt and 50% equity capital. The interest rate on the company’s debt will be 12%. Because the company will finance only 50% of the project with equity, it will have only 12,500 shares outstanding. Happy Turtle Transportation Company’s ROE and the company’s EPS will be if management decides to finance the project with 50% debt and 50% equity. When a firm uses debt financing, the business risk exposure for the firm’s common shareholders will .
Answers: 1
Business, 22.06.2019 01:00, staffordkimberly
Who is better at multi-tasking? in business, employees are often asked to perform a complex task when their atten-tion is divided (i. e., multi-tasking). human factors (may 2014) published a study designed to determine whether video game players are better than non–video game play-ers at multi-tasking. each in a sample of 60 college stu-dents was classified as a video game player or a non-player. participants entered a street crossing simulator and were asked to cross a busy street at an unsigned intersec-tion. the simulator was designed to have cars traveling at various high rates of speed in both directions. during the crossing, the students also performed a memory task as a distraction. two variables were measured for each student: (1) a street crossing performance score (measured out of 100 points) and (2) a memory task score (measured out of 20 points). the researchers found no differences in either the street crossing performance or memory task score of video game players and non-gamers. “these results,” say the researchers, “suggest that action video game players [and non-gamers] are equally susceptible to the costs of dividing attention in a complex task”
Answers: 1
Business, 22.06.2019 13:30, karenjunior
Over the past year, three of the star salesmen at family resorts international's corporate office have been lured away to competitors. on top of that, karina, the general manager of the sales department, has noticed that most employees come in, do their jobs, and leave. family resorts offers a good salary, benefits, and tuition reimbursement, as well as a number of development and training programs. most employees seem contented enough, but karina would like to do something to increase the level of engagement among her staff. what do you think karina should do?
Answers: 1
Business, 22.06.2019 13:50, tinasidell1972
The retained earnings account has a credit balance of $24,650 before closing entries are made. if total revenues for the period are $77,700, total expenses are $56,900, and dividends are $13,050, what is the ending balance in the retained earnings account after all closing entries are made?
Answers: 2
Consider the following case of Happy Turtle Transportation Company: Suppose Happy Turtle Transportat...
Mathematics, 10.01.2020 19:31
History, 10.01.2020 19:31
Mathematics, 10.01.2020 19:31
Business, 10.01.2020 19:31
Mathematics, 10.01.2020 19:31
History, 10.01.2020 19:31
History, 10.01.2020 19:31