No-Toxic-Toys currently has $400,000 of equity and is planning an $160,000 expansion to meet increasing demand for its product. The company currently earns $140,000 in net income, and the expansion will yield $70,000 in additional income before any interest expense.


The company has three options: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 9% annual interest, or (3) expand and raise $160,000 from equity financing. For each option, compute (a) net income and (b) return on equity (Net Income ÷ Equity). Ignore any income tax effects. (Round "Return on equity" to 1 decimal place.)

Answers

Answer 1

Answer:

Down below

Step-by-step explanation:

1. It does not expand

   a. Net income= $100,000 (as given in the question)

   b. Return on equity= (net income)/(shareholder’s equity)

Shareholder’s equity= $400,000

Thus return on equity= 100000/400000 = 0.25  or 25%

2. It expands and issue $160,000 in debt

   a. Net income= $100000 + 50000 –  12800 (debt interest 8% of     $160000)

= $137,200

b. Return on equity= (net income)/(shareholder’s equity)

= 137200/400000

=0.343  or 34.3%

3. It expands and raises equity of $160000

a. Net Income= $100000 + 50000

= $150000

b. Return on equity= (net income)/(shareholder’s equity)

= 150000/(400000 + 160000)

Where ($560,000) 400000 + 160000 is shareholder’s equity

= 0.27 or 27%


Related Questions

2. Is -1/3-4/5 positive,negative, or zero ?

Answers

Negative because if you take away from a negative, your just making it smaller... hope this helps!

Solve the system by graphing. (Enter your answers as a comma-separated list. If the system is inconsistent, enter INCONSISTENT. If the system is dependent, enter DEPENDENT.) x + y = 6 x − y = 2

Answers

Answer:

(4,2). DEPENDENT

Step-by-step explanation:

As each equation consist on two variable, both can be represented graphically on a cartesian plane. First, each expression is rewritten in explicit form:

[tex]y = 6 - x[/tex] (red line) and [tex]y = x - 2[/tex] (blue line)

By the resource of graphing software, the solution is (4,2). The representation is presented below as attachment. As solution exists, both expression are linearly DEPENDENT.

How much of other chemicals must be evaporated from 400 grams of a hand sanitizer that is 24% alcohol to strengthen it to a hand sanitizer that is 30% alcohol? Correct your answer to the nearest whole number.​

Answers

Answer:

80 g

Step-by-step explanation:

mass of sanitizer = 400 g

percentage of alcohol = 24%

mass of alcohol in the sanitizer = 24% of 400 g = 0.24 x 400 = 96 g

this means that the mass of other chemicals = 400 - 96 = 304 g

If alcohol content is increased to 30% by removing more of the other chemicals, then mass of alcohol will still remain 96 g

this means that 96 g becomes 30% of the resulting hand sanitizer, we write mathematically as

96 g = 30% of y

where y is the new mass of the sanitizer

96 = 0.3y

y = 96/0.3 = 320 g

The remaining mass of other chemicals  = 320 - 96 = 224 g

the total mass of other chemical lost is

304 - 224 = 80 g

If you roll two fair six-sided dice, what is the probability that at least one die shows a 3?

Answers

Answer:

3

Step-by-step explanation:

you are right

An object is dropped off a building that is 144 feet tall. After how many seconds does the object hit the ground? (

Answers

Answer:

t = 3 seconds

Step-by-step explanation:

16t^2=144

Simplify by dividing both sides by 16:

t^2=9

t=3

Hope this helped!

A manufacturer claims that fewer than 6% of its fax machines are defective. In a random sample of 97 such fax machines, 5% are defective. Find the P-value for a test of the manufacturer's claim. Group of answer choices 0.3264 0.1736 0.3409 0.1591

Answers

Answer:

[tex]z=\frac{0.05 -0.06}{\sqrt{\frac{0.06(1-0.06)}{97}}}=-0.415[/tex]  

Now we can find the p value with the following probability:

[tex]p_v =P(z<-0.415)=0.3409[/tex]  

Step-by-step explanation:

Information given

n=97 represent the random sample taken

[tex]\hat p=0.05[/tex] estimated proportion of defective

[tex]p_o=0.06[/tex] is the value to verify

z would represent the statistic

[tex]p_v[/tex] represent the p value

Hypothesis to tests

We want to tet if the true proportion is less than 6%, the system of hypothesis are:  

Null hypothesis:[tex]p\geq 0.06[/tex]  

Alternative hypothesis:[tex]p < 0.06[/tex]  

The statistic is given by:

[tex]z=\frac{\hat p -p_o}{\sqrt{\frac{p_o (1-p_o)}{n}}}[/tex] (1)  

Replacing the info given we got:

[tex]z=\frac{0.05 -0.06}{\sqrt{\frac{0.06(1-0.06)}{97}}}=-0.415[/tex]  

Now we can find the p value with the following probability:

[tex]p_v =P(z<-0.415)=0.3409[/tex]  

If -3+i is a riot of the polynomial function f(x), which of the following must also be a root of f(x)

Answers

Answer:

-3-i

Step-by-step explanation:

imaginary roots always occur in pairs.

so second root=-3-i

Answer:

A) -3-i

Step-by-step explanation:

imaginary roots always occur in pairs.

Burnwood Tech plans to issue some $50 par preferred stock with a 8% dividend. A similar stock is selling on the market for $65. Burnwood must pay flotation costs of 6% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.

Answers

Answer:

6.5%

Step-by-step explanation:

The formular used to calculate the cost of preferred stock is:

= Fixed dividend/Net proceeds

Fixed dividend= $50 × 8/100

= $50×0.08

=$4

Net proceeds= Market price-Flotation costs

= $65-(6/100×$65)

= $65-(0.06×$65)

= $65-3.9

= $61.1

Therefore cost of preferred stock is

= 4/61.1 ×100

= 0.065×100

= 6.5%

Hence the cost of preferred stock is 6.5%

A garage charges $24 an hour for labour. The garage charges Nigel $336 labour to replace the engine in his car. For how many hour labours was he charged?

Answers

Answer:

14 hours

Step-by-step explanation:

336/$24 = 14 hours

Answer: 14 hours

Step-by-step explanation:

Total charges = 336

Rate per hour = 24

No. of hours worked

= 336 / 24 = 14 hours

Filmore has invested $10,000 in an account to help pay for his grandson’s education. He expects the account to return 4.5% annually. Use the rule of 72 to estimate how long it will take the $10,000 to double in value.

Answers

Answer:

  16 years

Step-by-step explanation:

The rule of 72 says you can estimate the doubling time in years by dividing 72 by the interest rate in percent.

__

For an interest rate of 4.5%, the rule of 72 says the doubling time is ...

  72/4.5 = 16 . . . years

It will take about 16 years for the investment to double in value.

Suppose that 75% of adult Americans agree that, while downloading music from the Internet and then selling it is piracy and should be prohibited, downloading for personal use is an innocent act and should not be prohibited.We will take a random sample of 30 American adults and ask them if they agree with the statement. Then the sampling distribution of the sample proportion of people who answer yes to the question is:

Answers

Answer:

The sampling distribution of the sample proportion of people who answer yes to the question is approximately normal with mean of 0.75 and standard deviation of 0.0791.

Step-by-step explanation:

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation [tex]s = \frac{\sigma}{\sqrt{n}}[/tex].

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

For a proportion p in a sample of size n, the sampling distribution of the sample proportion will be approximately normal with mean [tex]\mu = p[/tex] and standard deviation [tex]s = \sqrt{\frac{p(1-p)}{n}}[/tex]

In this question:

[tex]p = 0.75, n = 30[/tex]

So

[tex]\mu = 0.75, s = \sqrt{\frac{0.75*0.25}{30}} = 0.0791[/tex]

The sampling distribution of the sample proportion of people who answer yes to the question is approximately normal with mean of 0.75 and standard deviation of 0.0791.

The adjustment of the thickness of the lens to make close vision possible is ca​

Answers

Answer: Accommodation

Step-by-step explanation:

Accommodation is the adjustment of the optics of the eye to keep an object in focus on the retina as its distance from the eye varies.

Puerto Rico is a spanish speaking territory of the United States functioning as a self governing _____.
A.commonwealth
B. Settlement
C.state
D. Colony

Answers

Answer:

It is a colony. hope i helped :)

Step-by-step explanation:

It is very much c (states)

64 less than y is no less than −128 Written in interval notation

Answers

Answer:

[tex]y\in [-64,\infty)[/tex] .

Step-by-step explanation:

The given statement is "64 less than y is no less than −128". It means 64 less than y is greater than or equal to −128.

[tex]y-64\geq -128[/tex]

Add 64 both sides.

[tex]y-64+64\geq -128+64[/tex]

[tex]y\geq -64[/tex]

It means possible value of y is greater than or equal to -64.

[tex]y\in [-64,\infty)[/tex]

Therefore, the required interval is [tex][-64,\infty)[/tex].

The lengths of two sides of a right triangle are given. Find the length of the third side. Round to the nearest tenth if
necessary.
legs: 18 in, and 17 in.
24.8 in.
a.
b.
5.9 in.
c. 27.7 in.
d. 19.5 in.

Answers

Answer:

A)24.8in

Step-by-step explanation:

17^2 + 18^2 =613

sq root of 613 = 24.758...

24.8in

what’s the area of this triangle?

Answers

Answer:

hi there, the answer is

A=45 cm2

Step-by-step explanation:

A= 1/2 x 10 x 9

A=5 x 9

A=45 cm2

"Rebecca walks 100 feet in a straight line. She then turns 20 degrees to her left and walks another 100 feet, and then turns 20 degrees to her left again. She continues this pattern until she reaches the point where she started. How far did she walk

Answers

Answer:

1,800 ft

Step-by-step explanation:

Rebecca will walk in the pattern of a regular polygon with 'n' sides and internal angles of 160 degrees (180 at a straight line - 20 degrees from each turn).

The equation that describes the internal angle of a regular polygon is:

[tex]A = \frac{(n-2)*180}{n}[/tex]

For A = 160 degrees:

[tex]160n=(n-2)*180\\(180-160)n=360\\n=18\ sides[/tex]

If each side is 100 ft long, the total distance that Rebecca has walked is:

[tex]d = 18*100\\d=1,800\ ft[/tex]

She walked 1,800 ft.

Which numbers belong to the solution set of the Inequality? x + 9 < 78

Answers

Answer: x<69

Step-by-step explanation:

For this problem, we solve is just as we would if it was an equal sign.

x+9<78       [subtract 9 on both sides]

x<69

Robert is 40 years older than Brittany. the sum of their ages is 82. find their ages.

Answers

Answer:

brittany is 42

Step-by-step explanation:

if he is 40 years older than her and the sum of there ages is 82

82-40 = 42

35 games a different team has 50pts 14 games were draws how many games was lost

Answers

Answer:

9 losts

The team had 14 draws which is 14points. So you will substrate 14points from the total 50point, which will left with 36point.

The 36point constitutes 12 wins

Therefore 12wins + 14draws = 26 matches.

You then substrate 26 matches from the 35total matches to get your lose matches.

: 35 - 26 = 9

Therefore, there was 9 lost matches

The director of the IRS has been flooded with complaints that people must wait more than 40 minutes before seeing an IRS representative. To determine the validity of these complaints, the IRS randomly selects 400 people entering IRS offices across the country and records the times which they must wait before seeing an IRS representative. The average waiting time for the sample is 60 minutes with a standard deviation of 22 minutes.

(a) Is there overwhelming evidence to support the claim that the wait time to see an IRS representative is more than 40 minutes at a 0.100 significance level?

Answers

Answer:

[tex]t=\frac{60-40}{\frac{22}{\sqrt{400}}}=18.18[/tex]    

The degrees of freedom are given by:

[tex]df=n-1=400-1=399[/tex]  

The p value for this case would be given by:

[tex]p_v =P(t_{(399)}>18.18) \approx 0[/tex]  

For this case since the p value is a very low value we can conclude that we have enough evidence to reject the null hypothesis and we can conclude that the true mean for this case is significantly higher than 40 minutes

Step-by-step explanation:

Information provided

[tex]\bar X=60[/tex] represent the sample mean

[tex]s=22[/tex] represent the sample standard deviation

[tex]n=400[/tex] sample size  

[tex]\mu_o =40[/tex] represent the value to verify

[tex]\alpha=0.1[/tex] represent the significance level

t would represent the statistic

[tex]p_v[/tex] represent the p value

Hypothesis to test

We want to verify if the true mean for this case is higher than 40 minutes, the system of hypothesis would be:  

Null hypothesis:[tex]\mu \leq 40[/tex]  

Alternative hypothesis:[tex]\mu > 40[/tex]  

The statistic would be given by:

[tex]t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}}[/tex]  (1)  

Replacing the info given we got:

[tex]t=\frac{60-40}{\frac{22}{\sqrt{400}}}=18.18[/tex]    

The degrees of freedom are given by:

[tex]df=n-1=400-1=399[/tex]  

The p value for this case would be given by:

[tex]p_v =P(t_{(399)}>18.18) \approx 0[/tex]  

For this case since the p value is a very low value we can conclude that we have enough evidence to reject the null hypothesis and we can conclude that the true mean for this case is significantly higher than 40 minutes

Brainliest for anyone who gets this correct , Which of the graphs below would result if you made the leading term of the following function negative?

Answers

Answer:

i think its D. i might be wrong sorry.

Step-by-step explanation:

Answer:D

Step-by-step explanation:

ones that go down are negative, and this is a cubic function

What is the product


46 times 10 (the ten has a exponent number) and the exponent number is 2

Answers

Answer:

The answer is 4600. 10 with the exponent of 2 is 100, so 100 times 46 is 4600. Hope this helps;)

Step-by-step explanation:

The answer will be 460 without the exponent ! Hope this helps !

What’s the correct answer for this question?

Answers

Answer:

PQ = 6

Step-by-step explanation:

Using tangent-secant theorem,

(PQ)² = (PR)(PS)

(PQ)² = (4)(9)

(PQ)² = 36

Taking square root on both sides, we get

PQ = 6

Molly, Nathan, and Sam own a
bookstore. They agree to share
the profit equally. If the profit is
$8,822, which is the best estimate
of each owner's share?
A $2,000
B $3,000
C $4,000
D $5.000

PLEASE HELP QUICKLY ! THANK YOU ​

Answers

At least 2,000

Step-by-step explanation:

I divided 8,822 by 3 and got 2940.66666....

If you basically round that, you get to 2,000

You could get 3,000 but they need to share their profit equally

(hopefully this helped :P)

a boy is standing on a pole of height 14.7m throws a stone upwards. it moves in a vertical line slightly away from the pole and falls on the ground. its equation of motion in meters and seconds is x=9.8t-4.9t^2. find time taken for upward and downward motions. also find the maximum height reached by the stone from the ground.

Answers

Answer:

The time taken for the upward motion is 1 second. The same time is taken for the downward motion

It reaches a maximum height of 4.9 meters.

Step-by-step explanation:

The equation of motion is:

[tex]x(t) = -4.9t^{2} + 9.8t[/tex]

Since the term which multiplies t squared is negative, the graph is concave down, that is, x increases until the vertex, where it reaches it's maximum height, then it decreases.

Vertex of a quadratic equation:

Quadratic equation in the format [tex]x(t) = at^{2} + bt + c[/tex]

The vertex is the point [tex](t_{v}, x(t_{v}))[/tex], in which

[tex]t_{v} = -\frac{b}{2a}[/tex]

In this question:

[tex]x(t) = -4.9t^{2} + 9.8t[/tex]

So [tex]a = -4.9, b = 9.8[/tex]

Vertex:

[tex]t_{v} = -\frac{9.8}{2*(-4.9)} = 1[/tex]

The time taken for the upward motion is 1 second.

[tex]x(t_{v}) = x(1) = 9.8*1 - 4.9*(1)^{2} = 4.9[/tex]

It reaches a maximum height of 4.9 meters.

Downward motion:

From the vertex to the ground.

The ground is t when x = 0. So

[tex]-4.9t^{2} + 9.8t = 0[/tex]

[tex]4.9t^{2} - 9.8t = 0[/tex]

[tex]4.9t(t - 2) = 0[/tex]

[tex]4.9t = 0[/tex]

[tex]t = 0[/tex]

Or

[tex]t - 2 = 0[/tex]

[tex]t = 2[/tex]

It reaches the ground when t = 2 seconds.

The downward motion started at the vertex, when t = 1.

So the duration of the downward motion is 2 - 1 = 1 second.

Marco bought 5 gallons of gasoline for $17.70.

To find the unit price, the cost by the number of gallons.
The unit price is .

Answers

To find the unit price we need to all price divide by number of gallons, so

[tex]17.70\div5=3.54[/tex]

Answer: The unit price is $3.54

Answer:

Unit price = 3.54$

Step-by-step explanation:

By using criss-cross method:

5 gallons -> $17.70

1 gallon -> ?

Unit price = 1x17.70 / 5 = 3.54$

Hope this helps..

Please help! Correct answer only, please! Consider the matrix shown below: Find the determinant of the matrix A. Group of answer choices A. The Determinant cannot be found for a matrix with these dimensions B. 11 C. 7 D. 23

Answers

Answer: d) 23

Step-by-step explanation:

Consider matrix [tex]\left[\begin{array}{cc}a&b\\c&d\end{array}\right][/tex]. The determinant is: ad - bc

In the matrix given, a = 5, b = -1, c = 3, d = 4

det A = ad - bc

        = 5(4) - 3(-1)

        = 20 - (-3)

        = 20 + 3

        = 23

The circle above has an area of 144 pi cm^2. What is the area of the blue sector? Use 3.14 for pi . A. 150.72 cm2 B. 25.12 cm2 C. 48 cm2 D. 113.04 cm2

Answers

Answer:

A. 150.72 cm2

Step-by-step explanation:

blue sector is 120 deg which is 1/3 of circle

so its area:

1/3*144 pi= 48 pi cm^2= 48*3.14 cm^2= 150.72 cm^2

A cone and a cylinder have the same base and height, as shown below. A cone is inside of a cylinder with same base and height. The volume of the cylinder is 84 pi inches squared What can be concluded about the volume of the cone? Check all that apply.

Answers

Answer:

The volume of the cone = 28 inch³

Step-by-step explanation:

First let's consider the formula for the volume of the shapes

For cylinder

Volume= πr²h

For cone

Volume= 1/3 πr²h

So we'd notice that no much difference except that the volume if a cylinder is divided by two to get that off a cone.

So if the volume of the cylinder is

84π inch

The volume of the cone is 84/3 = 28

The volume of the cone = 28 inch³

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