Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30 million of common equity. The firm has 500,000 shares of common stock outstanding. Sand Key is planning a major expansion and will need to raise $15 million. The firm must decide whether to finance the expansion with debt or equity. If equity financing is selected, common stock will be sold at $75 per share. If debt financing is chosen, 7% coupon bonds will be sold. The firm's marginal tax rate is 34%. Determine the level of operating income at which Sand Key would be indifferent between debt financing and equity financing

Answers

Answer 1

The level of operating income at which Sand Key would be indifferent between debt financing and equity financing is: $5,675,000.

Indifferent between debt financing and equity financing

First step

Number of new shares to be issued = 15,000,000/75

Number of new shares to be issued = 200,000 shares

Total number of shares if equity is issued =500,000+200,000

Total number of shares if equity is issued =700,000 shares

Second step

Total interest expense under Debt option=[(20,000,000×10%)+(15,000,000×7%)]

Total interest expense under Debt option=2,000,000+1,050,000

Total interest expense under Debt option=3,050,000

EPS under Equity option =(EBIT-2,000,000)×(1-0.34)/700,000

EPS under Equity option =(EBIT-2,000,000)×0.66/700,000

EPS under Debt option =(EBIT-3,050,000)×0.66/500,000

Third step

Indifference level operating income  (EBIT)

(EBIT-2,000,000)×0.66/700,000 = (EBIT-3,050,000)×0.66/500,000

Solve for EBIT:

5×(EBIT-2,000,000) = 7×(EBIT-3,050,000)

2×EBIT = 7×3,050,000-5×2,000,000

2×EBIT=21,350,000-10,000,000

2×EBIT=11,350,000

EBIT =11,350,000/2  

EBIT=$5,675,000

Therefore the level of operating income at which Sand Key would be indifferent between debt financing and equity financing is: $5,675,000.

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A website that shows you a selection of athletic shoes based on your previous views of other shoes is using Blank______ to be responsive to your personal needs.

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If website that shows you a selection of athletic shoes based on your previous views of other shoes is using personalization.

What is personalization?

Personalization can be defined as the process of knowing a person preferences so as to meet their need.

Most online companies tend to make use of  personalization to know your preference based on the last thing you bought or based on your previous view by advertising or marketing similar products to you so as to meet your personal needs.

Inconclusion If website that shows you a selection of athletic shoes based on your previous views of other shoes is using personalization.

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who benefits form medicare taxes?

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Answer: The Medicare tax rate is 1.45% of an employee's gross income. The Medicare tax, which is a charge on both employers and employees, is paid by both.

During spring break, students have an elasticity of demand for a trip to Florida of -3, while senior citizens have an elasticity of demand for a trip to Florida of -6. What pricing insight does this give to the airline companies

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The pricing insight it gives to the airline companies is to charge a lower price to the senior citizens because they have a relatively more elastic demand.

What is elastic demand?

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that as prices increases, the quantity demanded decreases more than the percentage change in price.

Group of answer choices

Charge a lower price to the senior citizens because they have a relatively more elastic demand.

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Charge a higher price to the students because they have a relatively more elastic demand.

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How are nuclear weapons distinguished from conventional weapons?.

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Answer:

This quantitative difference between nuclear and conventional weapons means that if nuclear weapons were used, they would alter key features of warfare—in particular, its duration, the targeting of noncombatants, and even the military relationship between winning and losing sides in a conflict.

Explanation:

To ensure efficient clear communication ics requires the use of:.

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Answer:

ICS requires the use of common terminology, meaning standard titles for facilities and positions within the organization.

Explanation:

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The reason the adoption of the Behind-The-Plate Signage was stalled at the Major League Baseball (MLB) was that:

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When did the objections to the Behind The Plate Signage abate?

The resistance to the idea of installing signages for adverts behind-the-plate disappeared after the 1993 season.

One of the reasons that helped was the increase in revenues as a result of the installation of the signages.

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__________ communication can significantly enhance an organization's reputation, productivity, community support, and economic success.

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What is external communication?

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Therefore, the external communication department is responsible for exchanging information with the macro-environment in line with the company's values ​​and objectives, seeking strategic advantages.

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Answers

If 20,000 gallons were 60% complete and 5,000 units were 40% complete. The Equivalent units equals 39,000 gallons.

Equivalent units

Using this formula

Equivalent units=Ending complete gallons(25,000 gallons ×60% complete)+ (5,000 units ×40% complete)

Let plug in the formula

Equivalent units=25000+(20000×60%)+(5000×40%)

Equivalent units=25,000+12,000+2,000

Equivalent units=39,000 gallon

Therefore the Equivalent units equals 39,000 gallons.

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2. Give at least two examples of types of identity theft.

Answers

Answer:

Two examples of identity theft:

1. Dressing like a coworker to give the impression that you are them.

2. Talking like a coworker to give the impression that you are them.

Explanation:

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Next, create the advertising for that product or service to reach a target market. Advertising can include a flyer, brochure, commercial, video, website, etc. Make sure you are advertising to a target market.

Finally, explain how you will use the elements of a marketing mix. Remember if you create a business that is an industry you need to use the 4P's (product, price, place, and promotion). If you choose to create a service business, you need to use the 7P's (product, price, place, promotion, people, process, and physical).

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Some of the steps in creating a company include:

Selecting a unique name.Making a financial plan and creation of a budget.Creation of vision and mission statement.Registration of the company with the government.

The advertising for the company would have to target an audience based on either demographics or income range or on the type of jobs they do that would require them to use your product.

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What is Advertising?

This refers to the creation of public awareness for a particular brand of products or services to get them to buy.

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A. Product layout

B. Process layout

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D. Hybrid layout

Answers

Answer:

c

Explanation:

As he was doing it he was fixed the postition

Answer:

its not fixed

Explanation:

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Answers

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What are intermediate and long-term goals?

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Long-term goals are goals that take many years to accomplish and require much savings. It may include learning something new, starting a business, specializing in an educational field, etc.

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Answer:

c

Explanation:

did it on edg:)

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The cash payments for Bramble Corp. reports operating expenses is  $79,200

What is operating expenses?

Operating expenses refers to the costs incurred by a business for its operational activities.

Cash payments for operating expenses is computed as :

= Operating expenses - Prepaid expenses decreased - Accrued expenses payable increased

= $91,000 - $7,300 - $4,500

= $79,200

Hence, the cash payments for Bramble Corp. reports operating expenses is  $79,200

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Answers

Answer:

It would be the microorganism

Explanation:

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It is essential that all stages of the promotion process are documented, increasing control and monitoring of decision making. Some metrics to help identify the effectiveness of promotional efforts are:

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When a bank holds a minimum amount as reserves as required by law, this is the required reserves.

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These are a certain percentage of every deposit made into a bank that they are to keep as reserves and not loan out.

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When MNEs draw on multiple, equally important innovation hubs throughout the world globalization, they become transnational corporation.

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It should be noted that globalization simply means the process whereby thw world become linked together.

In this case, when MNEs draw on multiple, equally important innovation hubs throughout the world globalization, they become transnational corporation.

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Xavier opened a savings account with a deposit of $12,000. the account earned simple interest. he did not make any additional deposits or withdrawals. at the end of 3 years, the account balance was $12,324. what is the annual interest rate on this account?

Answers

The annual interest rate on this account opened by Xavier will be 0.9%.

How to calculate the interest rate?

From the information, the following can be deduced:

Principal = $12000

Interest = $12324 - $12000 = $324

Time = 3

We'll use the formula:

I = PRT/100

324 = (12000 × R × 3)/100

32400 = 36000R

R = 32400/36000

R = 0.9

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I sorry but what do you mean

Answer:

this is seriously not the app for this...sorry

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includes risk identification
includes impacts of risks and
responses
Includes action for minimizing risks
Includes risk monitoring
includes analysis of consequences
includes prioritization of measures

Answers

These management of risk serves as assessment and controlling of threats to an organization's capital and earnings.

What is risk management?

This management entails the identifiying, analyszing and responding to risk factors that form part of the life of a business.

The risk identification in risk management includes documenting and communicating of concern of threats.

The impacts of risks & responses in risk management includes efforts to assess the consequences of an existing risk.

The action for minimizing risks inculudes use of insurance to minimize loss occuring from a risk.

The action of risk monitoring tracks and evaluates the levels of risk in an organisation.

In conclusion, the risk management is an essential part for an a project management because a managed risks will significantly increase the likelihood of project success.

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Answer:

includes risk identification- Risk Evaluation

includes impacts of risks and responses- Risk Control

Includes action for minimizing risks- Risk Control

Includes risk monitoring- Risk Evaluation

includes analysis of consequences- Risk Evaluation

includes prioritization of  measures- Risk Control

Explanation:

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Answers

The decision framework that is based on the relative distance between home and a foreign target country is the CAGE Distance Framework.

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CAGE is also used to understand the different patterns of business among people and the flows.

Therefore, The decision framework that is based on the relative distance between home and a foreign target country is the CAGE Distance Framework.

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Us

Diary kid

Yea

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Saving help to give a person freedom. Saving gives financial security. Saving implies that one can take any calculated risks.

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Answers

It is true that short-run aggregate supply is emphasised because it is the version of aggregate supply that can explain changes in output and prices.

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The above statement is true because the short-run aggregate supply can be used to provide explanation for variations in output and prices.

The other version is the long-run aggregate supply, however, it cannot and will not provide explanation for price and output variations at the same time.

This is the reason short-run aggregate supply is always emphasized.

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Drag the slider to decide what percentage he should invest in stocks versus bonds and cash equivalents.
When you’re finished, click submit.

Answers

Based on the fact that David has a low-risk tolerance, it is advisable that he invests small percentages in stocks and bonds.

What is Risk Tolerance?

This refers to the level of risk that an investor is willing to endure and this has to do with the variability in investment.

Please note that your question is incomplete so I gave you a general overview to help you get a better understanding of the concept.

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Answer:

On Everfi-58% on bonds and the rest on stocks

Explanation:

I just kept randomly moving the sider and it worked. If not keep trying near the bottom middle area

5 creative ideas that have changed how we live​

Answers

Answer:

talent without Hard work is nothing

don't waste time

believe in yourself never lose hope and dream big and chase them

work hard now and be proud later

sometime doing smart work with hard work is really important

never judge anyone coz. you never know a person's suffering ......

always be kind but never lose your self respect for anyone you love coz. if that person really loves you than he/she never make a thing that much big that affects your self respect or make you depress

be consistent maintain your time properly and complete your daily to daily tasks and think positive which develops confidence in you

don't run on towards the different different peeples to find love just improve yourself day by day and one day you automatically will have the person whom deserves you .....

respect elders especially parents and teachers and listen to them

don't hurt somebody just went away from the place you don't like

and eat healthy stay happy be confidence accept your faults and flaws and try to improve them never think what others says just do what you want the people will gonna demotivate you and taunt you but will also come to you when they need at the time when you will get success

Also, try to wake up early and be the part of humanity

THERE ARE SO MANY THINGS AND I AM TIRED OF WRITING NOW BUT YA I HOPE ITS HELP YOU TO BRINGS IMPROVEMENT IN YOUR LIFE ........

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Answers

In the state of Texas, the first case of DWI can bring about A fine of up to $2,000.

What is a DWI?

This is the short form for the words driving while intoxicated. Strict measures are taken to prevent this because they are a leading cause of accidents on the road.

In the state, such an offense for the first time is fined 2000 dollars and it could even result to days in Jail.

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Building piles of documents is an efficient way to organize.


Please select the best answer from the choices provided

T
F

Answers

Answer:

It is false because it isn’t the best way to organize.

Answer:

f

Explanation:

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