1. XYZLtd. currently has $400,000 of equity capital consisting of 2000 ordinary shares (the company has no debt). Currently the company is planning to increase its production capacity which requires funds of $100,000 which will be financed by several alternative funding. 1. Fully funded by ordinary shares with a par value of $200/share. 2. Fully funded by preferred stock with 10% dividend. 3. Of 70% are financed by ordinary shares with a nominal value of $200/share and 30% of the needed fund is financed by debt with an interest rate of 10%. The expected EBIT of the expansion project is $100,000, and the tax rate is 30%. Answer the following questions:

1. XYZLtd. currently has $400,000 of equity capital consisting of 2000 ordinary shares (the company has no debt). Currently the company is planning to increase its production capacity which requires funds of $100,000 which will be financed by several alternative funding. 1. Fully funded by ordinary shares with a par value of $200/share. 2. Fully funded by preferred stock with 10% dividend. 3. Of 70% are financed by ordinary shares with a nominal value of $200/share and 30% of the needed fund is financed by debt with an interest rate of 10%. The expected EBIT of the expansion project is $100,000, and the tax rate is 30%. Answer the following questions:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ER ES Study Question 6 In applying the high-low method, what is the fixed cost? Month Miles January 76000 February 52000 March 66000 April 84000 O$12000 $40000 O$45000 $32000 Total Cost $122000 110000 n the web and Windows 118000 150000 Click if you would like to Show Work for this question: Open Show Work
Bookmarks Window Help docs.google.com nkuspace.h. Tn https://soul2.hkuspace.h... h https://soul2.hkuspace.h. G Google Docs: Free Onlin.. E Untitled ls Add-ons Help Last edit was seconds ago 3回回,三州咖山 1三 Arial 11 BIUA + ニ三▼三▼三 4 5 1 6 The company sells T-shirts with identical unit costs and selling prices. Shown below are the revenue and cost information: Unit Variable Data (per unit) Selling price Variable Cost Monthly Fixed Costs $140,000 $200,000 $40,000 Other fixed costs $20,000 $ 80.00 $30.00 Rent Salaries Advertising The com has no beginning or ending inventories. The company produced and sold 10,000 units last month. Required: a) Prepare the contribution format income statement for last month. b) Compute the breakeven sales in dollars. Compute the margin of safety percentage last month. c) Compute the degree of operating leverage. d) How many units should the company sell to achieve a target net operating income of $49.500? e) If the company plans to offer sales commission to…
Hi I need help finding the monthly payment I think I have the right formula but dont know how to solve it
My Drive - Google Drive X 4 My Drive - Google Drive Front Desk Operations 2020 - Go X + ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3Dfalse Tp Netflix 0z TVCC Email P My Math Lab Log In to Canvas X Mathway | Calculus.. N Netflix Cengage Login * Login Readin- Darby Company, operating at full capacity, sold 114,800 units at a price of $108 per unit during the current year. Its income statement is as follows: Sales $12,398,400 Cost of goods sold 4,392,000 Gross profit $8,006,400 Expenses: Selling expenses $2,196,000 Administrative expenses 1,332,000 Total expenses 3,528,000 Income from operations $4,478,400 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative 30% 70% expenses Management is considering a plant expansion program for the following year that will permit an increase of $972,000 in yearly sales. The expansion will increase fixed costs by…
- Homework A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Ffaytechcc.blackboard.co... E User Management,.. H https://outlook.offi.. O FES Protection Plan System 7- North C.. 用Re mework Exercises i Soved Help Save & Exit Submit Check my work Required: Record the following transactions of Fashion Park in a general journal, Fashion Park must charge 6 percent sales tax on all sales. The company uses the perpetual inventory system. (Round your intermediate calculations and final answers to the nearest whole dollar value.) DATE TRANSACTIONS 20X1 Sold merchandise for cash, $2,540 plus sales tax. The cost of merchandise sold was $1,540. The customer purchasing merchandise for cash on April 2 returhed $270 of the merchandise; provided a cash refund to the customer. The cost of returned merchandise was $170. Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,090 plus tax, terms n/30. The cost of the merchandise sold was…
同 Mail - Edjouline X Bb Content- ACG2 X CengageNOWv X (58) YouTube + Microsoft Office X PowerPoint from Towards a A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%=Dassignments&takeAssignmentSessionLocator=assignment-take&inpro. of mail YouTube Maps eBook Show Me How apter Nine Determine Due Date and Interest on Notes .09-03.BLANKSHEET Determine the due date and the amount of interest due at maturity on the following notes: L09-04.BLANKSHEET Date of Note Face Amount Interest Rate Term of Note 09-03.ALGO January 10* $40,000 90 days a. b. March 19 180 days 000 8. 09-04.ALGO June 5 30 days 000'06 d. September 8 90 days 90-60 3. 000'9E e. November 20 60 days 9-11 4. 000' *Assume that February has 28 days. 9-12 Assume 360-days in a year when computing the interest. -19 Note Due Date Interest > -20 (2) (b) 9-22 -24 (p) (a) 890- 8/12 items Check My Work ( Previous Next LE V O 10: N
Excel File Edit View Insert Format Tools Data .. AutoSaveB2-C- Home Insert Draw Page Layout - n Paste H16 X 12 13 Calibri (Body) B I U . 14 14 15 16 17 18 19 20 21 33 Ready HY B A B 1 Formulas: Multiply, Add, Divide; Cell Referencing 2 12 Direct labor rate per hour Markup charged on jobs Enter Answer + Accessibility: Investigate Formulas LEOO tab *** A A & A ✓ Update Available We've made some fixes and improvements. To complete the process, the app needs to restart. x ✓ fx Budgeted MOH costs at start of year Budgeted direct labor hours at start of year Estimated hours for new client's job esc BE8.12-Using Excel to Determine Job Cost and Bid Price for a Service 4 Company 5 PROBLEM 6 Jace and Associates provides professional consulting services to a variety of 7 clientele in an effort to help them improve the operating effectiveness and 8 profitability of their businesses. The company's accountant established 9 budgeted direct labor hours as its allocation base. The company is 10…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
The question is in the picture
25 )