Operating costs including depreciation-cost of goods sold

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1. A firm has revenue of $60,000, its total operating costs including depreciation and cost of goods sold are $50,620, depreciation is $4,620 and its interest expense on outstanding loans is $2,000. What is the firm’s EBIT?

$55,380 $2,760 $9,380 $12,000

2. Suppose you could borrow using either a credit card that charges 1% per month or a bank loan that quotes a nominal rate of 12% compounded quarterly. Which should you choose to get a lower rate?

Bank Loan Credit Card both have the same rate of EFF% Neither. You should issue commercial paper that pays 25%.

Reference no: EM13874993

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Operating costs including depreciation-cost of goods sold : A firm has revenue of $60,000, its total operating costs including depreciation and cost of goods sold are $50,620, depreciation is $4,620 and its interest expense on outstanding loans is $2,000. What is the firm’s EBIT? Suppose you could borrow usin..

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