subject
Business, 30.11.2021 21:10 leilaelmazry

Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $600,000 per year; if he works a 50-hour week, the company's EBIT will be $725,000 per year. The company is currently worth $3.7 million. The company needs a cash infusion of $1.8 million and can issue equity or issue debt with an interest rate of 8 percent. Assume there are no corporate taxes. What are the cash flows to Tom under each scenario? (Enter your answers in dollars, not millions of dollars (e. g. 1,234,567). Do not round intermediate calculations.)

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 15:30
Jen heard that the bank where she kept her money was going to close for good. jen said she wasn't worried
Answers: 3
question
Business, 22.06.2019 05:00
The new york stock exchange is an example of what type of stock market?
Answers: 1
question
Business, 22.06.2019 08:00
In addition to using the icons to adjust page margins, a user can also use
Answers: 1
question
Business, 22.06.2019 13:30
Presented below is information for annie company for the month of march 2018. cost of goods sold $245,000 rent expense $ 36,000 freight-out 7,000 sales discounts 8,000 insurance expense 5,000 sales returns and allowances 11,000 salaries and wages expense 63,000 sales revenue 410,000 instructions prepare the income statement.
Answers: 2
You know the right answer?
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this,...
Questions
question
Chemistry, 02.12.2021 15:30
question
English, 02.12.2021 15:40
question
Mathematics, 02.12.2021 15:40
Questions on the website: 13722363