Business, 20.10.2020 01:01 michaelbernbenn5740
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $615,000 per year; if he works a 50 hour week, the company's EBIT will be $755,000 per year. The company is currently worth $3.85 million. The company needs a cash infusion of $1.95 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes. What are the cash flows to Tom under each scenario?
Answers: 1
Business, 22.06.2019 19:50, hdkdkdbx
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries
Answers: 1
Business, 24.06.2019 04:00, rockabillyEli689
Firm x is producing 1000 units, selling them at $15 each. variable costs are $3 per unit and the firm is making an accounting profit of $3000. what is the firm's fixed costs? a. $9,000 b. $10,000 c. $11,000 d. $12,000
Answers: 2
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this,...
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