subject
Business, 08.05.2021 01:00 memelord4206969

Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in permanent current assets. Times also has $640,000 in fixed assets. Assume a tax rate of 40 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.) a. Construct two alternative financing plans for Times. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 14 percent on long-term funds and 8 percent on short-term financing. Compute the annual interest payments under each plan. Annual Interest Conservative $ Aggressive $ b. Given that Times' earnings before interest and taxes are $420,000, calculate earnings after taxes for each of your alternatives. Earnings After Taxes Conservative $ Aggressive $ c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:00
Label each scenario with the term that best describes it. use the midpoint method when applicable. marcel duchamp was a famous artist prior to his death, and was known for his dada artwork, including works such as "soft toilet". all of his original sculptures and paintings go on sale. paul owns a tim horton's, a famous donut and coffee franchise. he is willing to sell as many maple glazed donuts as customers want at a price of $1.00 each, but he refuses to sell any donuts for any price lower than $1.00 . the price of facial tissues rises from $2.85 per box to $3.15 . as a result, p& g increases production from 15 million boxes to 25 million boxes of facial tissue. with the school semester starting for both high school and college, papermate chooses to increase production of pens from 38 million to 42 million after global prices of writing instruments increase from $1.90 a package to $2.10 a package. bright ideas increases its production of lightbulbs by 15% after a 400% increase in the price of fluorescent bulbs.labels: elastic supply; perfectly inelastic supply; perfectly elastic supply; inelastic supply; unit-elastic supply.
Answers: 2
question
Business, 22.06.2019 07:30
Awell-written business plan can improve your chances of getting funding and give you more free time. improved logistics. greater negotiating power.
Answers: 1
question
Business, 22.06.2019 10:00
Marco works in the marketing department of a luxury fashion brand. he is making a presentation on the success of a recent marketing campaign that included a fashion show. which slide elements can he use to include photographs and footage of the fashion show in his presentation? marco can use the: table images audio option to include photographs and the: flowcharts images video option to include footage of the fashion show.
Answers: 1
question
Business, 22.06.2019 11:10
Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)
Answers: 2
You know the right answer?
Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current...
Questions
question
History, 01.03.2021 18:50
question
English, 01.03.2021 18:50
question
Mathematics, 01.03.2021 18:50
question
Mathematics, 01.03.2021 18:50
question
Mathematics, 01.03.2021 18:50
question
Medicine, 01.03.2021 18:50
question
French, 01.03.2021 18:50
Questions on the website: 13722361