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1. Firm A has $10,000 in assets entirely financed with equity. Firm B also
has $10,000 in assets, but these assets are financed by $5,000 in debt
(with a 10 percent rate of interest) and $5,000 in equity. Both firms sell
10,000 units of output at $2.50 per unit. The variable costs of production
are $1, and fixed production costs are $12,000. (To ease the calculation,
assume no income tax.)
a. What is the operating income (EBIT) for both firms?
b. What are the earnings after interest?
c. If sales increase by 10 percent to 11,000 units, by what percentage
will each firm's earnings after interest increase? To answer the question,
determine the earnings after taxes and compute the percentage
increase in these earnings from the answers you derived in part b.
d. Why are the percentage changes different?
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∙ 12y ago
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How many times does five go into 370?
370 ÷ 5 = 74
What is 374 rounded to the nearest ten?
370
What is 40 percent off of 370?
22240% off of 370= 40% discount applied to 370= 370 - (40% * 370)= 370 - (0.40 * 370)= 370 - 148= 222
What is 372 rounded to the nearest 10?
370
What is 366 rounded to the nearest ten?
370
What are five multiples of 74?
The first 5 multiples of 74 are: 74, 148, 222, 296, and 370.
What is 81 percent of 370?
81% of 370= 81% * 370= 0.81 * 370= 299.7
What is 88 percent of 370?
88% of 370= 88% * 370= 0.88 * 370= 325.6
What number is 50 percent of 370?
50% of 370= 50% * 370= 0.5 * 370= 185
How do you work out sixty percent of 370?
22260% of 370= 60% * 370= 0.60 * 370= 222
WHAT IS 150 percent OF 370?
150% of 370 = 555 = 150% * 370 = 150%/100% * 370 = 555
What is 370 minus 6 percent?
370 - 6% = 94% of 370 = 370*94/100 = 347.8
