Business

25 May, 18:31

Hicks health clubs, inc., expects to generate an annual ebit of $505,000 and needs to obtain financing for $1,080,000 of assets. their tax bracket is 32%. if the firm goes with a short-term financing plan, their rate will be 6.5 percent, and with a long-term financing plan their rate will be 7.5 percent. by how much will their earnings after tax change if they choose the more aggressive financing plan instead of the more conservative? (amounts in parentheses indicate negative value.)

+1

Answers (1)

Know the Answer?

Not Sure About the Answer?

Find an answer to your question 👍 “Hicks health clubs, inc., expects to generate an annual ebit of $505,000 and needs to obtain financing for $1,080,000 of assets. their tax ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.

Search for Other Answers

You Might be Interested in

At july 31, planter company has this bank information: cash balance per bank $7,291, outstanding checks $762, deposits in transit $1,350, and a bank service charge $40. determine the adjusted cash balance per bank at july 31.

Which nims management characteristic refers to the number of subordinates that directly report to a supervisor?

If Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself, then GDP A. necessarily rises. B. necessarily falls. C. will be unaffected because the same service is produced in either case. D.

Terry Fleming is the owner and operator of Go-For-It LLC, a motivational consulting An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.

An investor is analyzing the risk of a possible investment by producing three different scenarios. Under a pessimistic scenario, the property would produce a BTIRRp of 8%; a most-likely scenario would produce a BTIRRp of 12%;

New Questions in Business

You walk onto a used-car lot to buy your first car. However, you are not sure about the quality of the cars in the lot and expect one-third of them to be of poor quality. Refer to the scenario above. Suppose you decide to buy a Toyota Corolla.

Suppose youre a salesperson for a beer and wine distributor. one of your customers has just finished telling you they are unhappy because their last order contained several broken bottles.

Jane agrees, in writing, to buy Susan's house for $300,000 as soon as Jane is ready to buy a house. The agreement is: Group of answer choices a. Unenforceable, because it violates the statute of frauds b.

The PMI develops procedures and concepts necessary to support the profession of project management. Which of the following is not one of the three areas it focuses on?

The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends increasing by 2.8 percent annually. What is the market rate of return if the stock is currently selling for $49.10 a share?