arket valu

Define Equity multiplier.

Explain the Leverage and the Incremental Cost of Debt with example?

A plastic manufacturing company that makes four major products seeks to expand its operations in the coming year. At the beginning of the financial year, the company must decide on which of four new machines A, B, or C to purchase to be able to meet total annual demand. Each machine operates 14 hours a day, 360 days a year. Machine A costs GH¢43,000, machine B costs GH¢37,500 and machine C costs GH¢75,000. The following product forecasts and processing times have been projected:                      Demand,                     units/year               Processing times per Unit (Minutes) Product                              Machine A         Machine B             Machine CPenholders        16,000             5                         3                         6Bowls                14,000             4                          3                         5Cups                   6,000             6                         5                         7Carrier Bags      24,000            3…