Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an 11 percent return and can be financed at 6 percent with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a 9 percent return but would cost 15 percent to finance through common equity. Assume debt and common equity each represent 50 percent of the firm’s capital structure. a. Compute the weighted average cost of capital. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Answers

Answer 1

Answer:

10.5%

Explanation:

WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)

(6% x 0.5) + (15% x 0.5) = 3% + 7.5% = 10.50%


Related Questions

On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. What was the amount of the gain or loss on the sale of equipment reported by Republic on its pre-consolidation income statement in 2020

Answers

Answer:

Republic Company and Barre Corporation

The amount of the gain or loss on the sale of equipment reported by Republic on its pre-consolidation income statement in 2020 is:

= $5,000.

Explanation:

a) Data and Calculations:

Original cost of Equipment sold to subsidiary = $60,000

Accumulated depreciation of the equipment =    25,000

Book value of equipment =                                 $35,000

Sales proceeds for the sale of the equipment    40,000

Gain on the sale of the equipment =                   $5,000

Reported net income of Barre Corporation:

2020  $250,000

2021   $270,000

2022  $310,000

Dividends received by Republic from Barre:

2020  $90,000

2021   $105,000

2022  $120,000

If you want to use a method of dispute resolution other than a trial and you want someone else to decide the issues between you and a business partner, what type of dispute resolution would you select? O A. Conciliation O B. Arbitration O C. Negotiations D. Mediation​

Answers

Answer:

b

Explanation:

The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 87,000 units of this item in 2020. The beginning finished goods inventory contains 32,000 units. The target for each year's ending inventory is 22,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 88,000 feet of the required tubing. Materials on hand are targeted to equal 3 months' production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What is the production budget (in units) for 2020

Answers

Answer:Production budget for 2020 =77,000 units

Explanation:

Production budget also referred to as manufacturing budget tells a business  the expected units needed to  be produced which depends on the sales budget in the inventories ( both closing and opening) so as to meet customers demand.  

Units produced =  Projected sales +  desired ending inventory –  beginning inventory

Units Produced/ Production budget for 2020 =87,000  +  22,000 - 32,000  

= 77,000 units

0

the required return on the stock of moe's pizza is 12.1 percent and after tax required return on the company's debt is 3.79 percent. the company's market value capital structure consists of 73 percent equity. the company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 2.2 percent. the tax rate is 40 percent. what is the required return for the new project

Answers

Answer:

7.65%

Explanation:

required return = (percent of stock x required return on stock) + (after tax cost of debt  x percent of debt) - adjustment factor

Percent of debt = 100 - 73 = 27%

(12.1 x 0.73) + (3.79 x 0.27) - 2.2 = 7.65%

Journal entries relating to capital
CW1 The following transactions are provided to you:
a) Mahesh commenced a business with cash of Rs.1,50,000.
b) Denju started a small business with cash of Rs.10,000 and furniture worth Rs.40,000.
c) Suresh started a business with cash of Rs. 25,000 and bank balance of Rs.75,000.
Required: Journal entries
Journal entries relating to drawing​

Answers

the answer to this problem would be c :))

There is a small fictitious island country, called Noil, floating in the south Pacific ocean. Many years ago there was an abundance of fish and the population grew rapidly. Now the adult population has reached a total of 35 thousand people. This year fishing and other jobs have been on the decline and now 1 thousand people are looking to find work. With an increasing elderly population 3 thousand are now retired. Boil does not have an army, but it does have a small coast guard of 432 citizens serving the country and patrolling the waters where needed. What is the country of Nails unemployment rate

Answers

Answer: 3.2%

Explanation:

The labor force of a nation consists of its working class population who are not retired, willing to work, and are not part of the military or defense bodies such as the Coast guard.

The labor force of this nation is therefore:

= Adult population - Retired people - Coast guard

= 35,000 - 3,000 - 432

= 31,568 people

If a thousand people are unemployed, the unemployment rate is:

= Unemployed / Labor rate

= 1,000 / 31,568

= 3.1568 %

= 3.2%

Earth Farm arranges to have Fresh Express Inc., a common carrier, transport a load of almonds. Fresh Express will be liable for any loss or damage to the almonds a. unless the carrier exercised reasonable care. b. unless the loss or damage is caused by a natural disaster. c. under no circumstances. d. under any circumstances.

Answers

Answer:

b. unless the loss or damage is caused by a natural disaster.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

In this scenario, Earth Farm enters a contractual agreement with Fresh Express Inc., a common carrier, to have them transport a load of almonds.

By law, Fresh Express will be liable for any loss or damage to the almonds unless the loss or damage is caused by a natural disaster such as earthquake, volcanoes, flood, tsunami, etc.

This ultimately implies that, any loss or damage to the almonds incurred by Fresh Express based on intentional or artificial actions.

Answer:

b. unless the loss or damage is caused by a natural disaster.

Explanation:

Hope this helps

Which of the following statements about effective global leadership are NOT true?

A. In collectivist cultures, employees typically value their autonomy, and are unlikely to be motivated by fringe benefits and training provided by the employer.

B. High power distance implies that people would be more motivated by teamwork and relations with peers.

C. High masculinity suggests that most people would be more comfortable with the traditional division of work and roles; in a more feminine culture, the boundaries could be looser, motivating people through more flexible roles and work networks.

D. The higher the level of "masculinity" (such as in Japan and Mexico), the more motivated employees were by being given opportunities for high pay, personal accomplishment, and job advancement.

E. Traditional Chinese management style focuses on human-centredness, family-centredness, and centralisation of power.

Answers

High power distance suggests that individuals would be more motivated by group dynamics and peer relationships. As a result, choice (B) is appropriate.

What is global leadership?

Global leadership is the interdisciplinary study of the critical skills that future leaders in all spheres of the personal experience should master in order to effectively become familiar with the psychological, physiological, geographical, geopolitical, anthropological, and sociological effects of globalization.

When a person or people use a global mentality to lead collaborative efforts between various stakeholders through an environmental complexity toward a vision, this is known as global leadership. To enable today's complicated processes of information sharing around the world, global leaders must be able to connect people from different nations and engage them in global team collaboration.

Hence option (B) is accurate.

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McCormick Corp. reported the following on its comparative income​ statement:
Mariner Corp.
Income Statement - (Partial)
Years Ended December 31, 2019 and 2018
Increase (Decrease)
2019 2018
(Amounts in
millions) 2019 2018 2017 Amount Percentage Amount Percentage
Revenues 9,575 $9,300 $8,975
Cost of
Goods Sold 7,240 6,800 6,100
Gross Profit $2,335 $2,500 $2,875
Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025. Begin by calculating the gross profit for each​ year, then prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025.

Answers

Answer:

McCormick Corp.

Horizontal Analysis of Revenues and Gross Profit:

Income Statement - (Partial)

Years Ended December 31, 2019 and 2018

                                                                      Increase (Decrease)

                                                                     2019                  2018

(Amounts in  millions)

                         2019  2018      2017       Amount   %         Amount   %

Revenues       9,575 $9,300 $8,975     $275     2.96%   $325   3.62%

Cost of

Goods Sold    7,240    6,800    6,100    $440     6.47%    $700   11.5%

Gross Profit $2,335 $2,500 $2,875    -$165    -6.6%     -$375   -13%

Explanation:

a) Data and Calculations:

Income Statement - (Partial)

Years Ended December 31, 2019 and 2018

                                                                      Increase (Decrease)

                                                                     2019                  2018

(Amounts in  millions)

                         2019  2018      2017       Amount   %         Amount   %

Revenues       9,575 $9,300 $8,975  

Cost of

Goods Sold    7,240    6,800    6,100  

Gross Profit $2,335 $2,500 $2,875

Workings:

Revenue:

2019 = $275/$9,300 * 100 = 2.96%

2018 = $324/$8,975 * 100 = 3.62%

Cost of goods sold:

2019 = $440/$6,800 * 100 = 6.47%

2018 = $700/$6,100 * 100 = 11.5%

Gross profit:

2019 = $(165)/$2,500 * 100 = -.6.6%

2018 = $(375)/$2,875 * 100 = -13%

A one-year Future contract is an agreement where​

Answers

One side has the right to buy an asset for a certain price in one year's time. One side has the obligation to buy an asset for a certain price in one year's time. One side has the obligation to buy an asset for a certain price at some time during the next year.

Read the scenario, and answer the question.

Enrique interviewed for a copyeditor position six days ago. He decides to write a follow-up e-mail to ask how the decision process is going. He composes a first draft, but he knows that he will need to make some revisions.

To Whom It May Concern: My interview last week was enjoyable. Thank you. I am still interested in the job. In fact, I really, really need a job in the next week. I haven't heard anything from you or the human resources representative, and I am wondering what the holdup is. I'm very eager to know your decision, so if you could hurry things up, I would greatly appreciate it. I look forward to hearing from you.

Sincerely,
Enrique Heller

Choose one possible revision suggestion for the previous follow-up letter.

a. Include a statement informing the interviewer that you will call until you get an answer.
b. Include a date when he expects to hear from the prospective employer.
c. Identify the position he applied for and the date of the interview.

Answers

Answer:

One possible revision suggestion for the previous follow-up letter is to:

c. Identify the position he applied for and the date of the interview.

Explanation:

Stating clearly the position that Enrique interviewed for and the the date of the interview will enable the interviewer to reconsider the candidacy of Enrique for the copy-editor position.  However, the wording of his first draft of the follow-up email sounds too condescending.  Enrique should not display some desperation in his job-search effort.

Una compañía de cemento aceptó un préstamo por $18.500 por un trabe o completado en un edificio
comercial. El préstamo fue por 180 dias a un 7.5% de interés simple. Si la nota fue vendida a una tasa de
descuento de 9% por 30 dias después de recibido, calcule el bank discount.
Select one:
a
a. $715.88
b. $720.49
c. $723.69
d. $719.77

Answers

Answer:

b

Explanation:

Witt Corporation received its charter during January of this year. The charter authorized the following stock:

Preferred stock: 10 percent, $10 par value, 21,600 shares authorized
Common stock: $8 par value, 50,900 shares authorized

During the year, the following transactions occurred in the order given:

a. Issued 38,600 shares of the common stock for $12 per share.
b. Sold 6,900 shares of the preferred stock for $16 per share.
c. Sold 5,000 shares of the common stock for $15 per share and 2,600 shares of the preferred stock for $26 per share.
d. Net income for the year was $55,000.

Required:
Prepare the stockholders' equity section of the balance sheet at the end of the year.

Answers

Answer:

Witt Corporation

Stockholders' Equity Section of the Balance Sheet at the end of the year:

Authorized share capital:

10% Preferred stock, $10 par, 21,600 shares

Common stock, $8 par, 50,900 shares

Issued and outstanding:

10% Preferred stock, $10 par, 9,500 shares   $95,000

Additional Paid-in Capital- Preferred                  83,000

Common stock, $8 par, 43,600 shares           348,800

Additional Paid-in Capital- Common stock       189,400

Retained earnings                                              55,000

Total equity                                                      $771,200

Explanation:

a) Data and Analysis:

Authorized share capital:

10% Preferred stock, $10 par, 21,600 shares

Common stock, $8 par, 50,900 shares

Transactions:

a. Cash $463,200 Common stock $308,800 Additional Paid-in Capital-Common $154,400, 38600 shares at $12 per share

b. Cash $ 110,400 10% Preferred stock $69,000 Additional Paid-in Capital-Preferred $41,400, 6,900 shares at $16 per share

c. Cash $142,600,000 Common stock $40,000 Additional Paid-in Capital-Common $35,000 10% Preferred stock $26,000 Additional Paid-in Capital-Preferred $41,600 5,000 shares of the common stock at $15 per share and 2,600 shares of the preferred stock at $26 per share

d. Net income for the year = $55,000

Cash:

Common stock                                  $308,800

Additional Paid-in Capital-Common    154,400

10% Preferred stock                              69,000

Additional Paid-in Capital-Preferred     41,400

Common stock                                     40,000

Additional Paid-in Capital-Common    35,000

10% Preferred stock                             26,000

Additional Paid-in Capital-Preferred    41,600

Total cash                                         $716,200

PLEASE HELP!

How many years would it take to earn $225 on a $750 investment at 5% simple interest?

Answers

Answer:

T = 6 years

Explanation:

Given that,

Principal, P = $750

Interest = $225

Rate of interest = 5%

We need to find in how many years it would take to earn $225 on a $750 investment at 5% simple interest. The formula for simple interest is given by :

[tex]I=\dfrac{PRT}{100}\\\\T=\dfrac{100I}{PR}\\\\T=\dfrac{100\times 225}{750\times 5}\\\\T=6\ years[/tex]

So, the required time is 6 years.

MNO was a partnership which contracted for and performed all types of painting jobs. Before the partnership was dissolved, MNO had entered into a contract under which MNO was to paint every room in the state capitol building. At the time of the partnership dissolution, MNO had not yet performed the work called for by such contract. If the partners involved in the winding up elect to perform the contract, they:

Answers

Answer: a. have the authority to enter into new contracts with subcontractors, material suppliers, and workers

Explanation:

If the partners elect to finish the job, they will legally have the authority to enter into new contracts with the necessary outside contractors needed to get the job done.

This is because the job was agreed to with the partners and with the dissolution of the partnership, contracts with these contractors were cancelled. Since the partners however want to pursue the job, they are free to do so but will need to get new contracts to replace the old cancelled ones.

The Simon Company (SIMON) currently has $300,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $150,000, and it is a zero growth company. SIMON's current cost of equity is 8.8%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $90.00.Now assume that SIMON is considering changing from its original capital structure to a new capital structure that results in a stock price of $96 per share. The resulting capital structure would have a $504,000 total market value of equity and a $756,000 market value of debt. How many shares would SIMON repurchase in the recapitalization

Answers

Answer:

The answer is "4,750"

Explanation:

They have indeed been given the information that we require.

The current market cap for Simon Company (SIMON) is $300,000.

rate= 6%

EBIT=$150,000

The business has no plans to expand.

The current cost of capital is 8.8%,

The tax rate is 40%.

The company has 10,000 shares of common stock mostly on market.

The stock is being offered at a $90.00 per share price.

Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.

The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.

Remaining Shares= equity market value /  per share price

[tex]n =\frac{S}{P} \\\\= \frac{\$504,000}{ \$96}\\\\= \$5,250[/tex]

The initial number of shares minus the resultant number of shares equals the number of repurchased shares:

AJC will buy back a certain number of shares.

[tex]= 10,000 - 5,250\\\\= 4,750\\[/tex]

Antonia is a nonresident of California who is under 50 years of age. During the year, she worked temporarily in California. Her California compensation is $1,000, which she reported on Schedule CA (540NR), column E. Her Federal compensation is $10,000. Her allowable IRA deduction on her Federal return is $5,000. Antonia’s allowable California IRA deduction that she reports on Schedule CA (540NR), Part II, line 19, column E, is what amount?

Answers

Antonia’s allowable California IRA deduction that she reports on Schedule CA (540NR), column E is B. $1,000.

What is tax deduction?

An option to lower taxable income is a tax deduction. A standard deduction is a single, predetermined deduction. Higher-income taxpayers frequently have significant deductible expenses, such as state and local taxes paid, mortgage interest, and charitable contributions, which is why itemized deductions are popular.

The amount of the California deduction for IRA is the same as the federal deduction. However, the California deduction may be limited by California compensation or by California self-employment income.

Therefore her deduction would be $1000.

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Antonia is a nonresident of California who is under 50 years of age. During the year, she worked temporarily in California. Her California compensation is $1,000, which she reported on Schedule CA (540NR), column E. Her Federal compensation is $10,000. Her allowable IRA deduction on her Federal return is $5,000. Antonia’s allowable California IRA deduction that she reports on Schedule CA (540NR), column E, is what amount? a) $0 b) $1,000 c) $2,000 d) $4,000

Answer: B

Explanation: As a NR She is able to claim the amount of her CA earned income.

Prepare the general journal entries for Infinity Diner for the following notes receivable transactions (assuming there are 28 days in February). When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Dec. 3 Sold merchandise to Brian Chan on account, $6,900. 11 Sold merchandise to Gloria Lupo on account, $3,600. Jan. 2 Received a $6,900, 10%, 30-day note from Brian Chan in payment of account. 10 Received a $3,600, 12%, 30-day note from Gloria Lupo in payment of account. Feb. 1 Received $600, plus interest on January 2 note, and a new, 14% 60-day note for the remaining balance. Feb. 9 On the maturity date, note dated January 10 was dishonored. Apr. 2 On the maturity date, Infinity Diner received principal and interest for February 1 note.

Answers

Answer:

Infinity Diner

General Journal Entries:

Dec. 3 Debit Accounts receivable (Brian Chan) $6,900

Credit Sales Revenue $6,900

To record the sale of merchandise on account.

Dec. 11 Debit Accounts receivable (Gloria Lupo) $3,600

Credit Sales Revenue $3,600

To record the sale of merchandise on account.

Jan. 2 Debit 10% Notes receivable (Brian Chan) $6,900

Credit Accounts receivable (Brian Chan) $6,900

To record the acceptance of a 30-day note in payment of account.

Jan. 10 Debit 12% Notes receivable (Gloria Lupo) $3,600

Credit Accounts receivable $3,600

To record the acceptance of a 30-day note in payment of account.

Feb. 1 Debit Cash $657.50

Debit 14% Notes receivable (Brian Chan) $6,300

Credit 10% Notes receivable (Brian Chan) $6,900

Credit  Interest revenue $57.50

To record the acceptance of a 60-day note for the remaining balance.

Feb. 9 Debit Accounts receivable (Gloria Lupo) $3,636

Credit 12% Notes receivable (Gloria Lupo) $3,600

Credit Interest revenue $36

To record the dishonor of note on maturity date.

Apr. 2 Debit Cash $6,447

Credit 14% Notes receivable (Brian Chan) $6,300

Credit Interest revenue $147

To record the receipt of cash for full settlement on account.

Explanation:

a) Data and Analysis:

Dec. 3 Accounts receivable (Brian Chan) $6,900 Sales Revenue $6,900

Dec. 11 Accounts receivable (Gloria Lupo) $3,600 Sales Revenue $3,600

Jan. 2 10% Notes receivable (Brian Chan) $6,900 Accounts receivable (Brian Chan) $6,900 30-day note in payment of account.

Jan. 10 12% Notes receivable (Gloria Lupo) $3,600 Accounts receivable $3,600 30-day note in payment of account.

Feb. 1 Cash $657.50 14% Notes receivable (Brian Chan) $6,300 10% Notes receivable (Brian Chan) $6,900 Interest revenue $57.50 60-day note for the remaining balance.

Feb. 9 Accounts receivable (Gloria Lupo) $3,636 Notes receivable (Gloria Lupo) $3,600 Interest revenue $36

Apr. 2 Cash $6,447 14% Notes receivable (Brian Chan) $6,300 Interest revenue $147

The probability that inventory will remain in stock based upon a specified level of Safety Stock is called: A. The Order-Up-To Level B. The Odds of Fulfillment C. The Odds of Stockout D. The Service Level E. The Inventory Position

Answers

Answer:

The answer is "Option D".

Explanation:

The system's performance is gauged only by the level of service. The quality of service specifies the percentage of such goals which should be met. That likelihood of stock remaining in inventory based on a set level of Security Stock is referred to as the service level. Ex: In a contact center, the number of calls that are addressed. That percentage of consumers who have waited less than a fixed amount of time.

The probability that inventory will remain in stock is based upon a specified level of safety stock, which is called the service level stock.

Safety stock safeguards and maintains the effective production process of the organization during the busy season or unexpected rise in demand.

Service level stock states the probability about the stock of inventory that is with the business at the time of lead would be sufficient to fulfill the demand and production requirements. Thus, the situation of stock out would not be seen during the lead period.  

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Question Content Area Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $21,000,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $19,417,090.

Answers

The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $19,417,090.The journalize entries to record the issuance of the bonds.

What is market?

In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange

Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced.

Market participants consist of all the buyers and sellers of a good who influence its price, which is determined by the market forces of supply and demand.

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:
a.
Which of the following environmental justice policies would the Environmental Protection Agency be least interested in
and able to support?
fair treatment
b. legal policies
C. social justice
d. corrective justice
Please select the best answer from the choices provided
B
Оооо
D

Answers

Answer:

C

Explanation:

EDGE

2 points Time Remaining 5 minutes 36 seconds00:05:36 eBookItem 2 Time Remaining 5 minutes 36 seconds00:05:36 Brad proposed the purchase of a new Toshiba copier to his boss, Chin. Chin said that he has always used and liked Xerox copiers, but when he thinks about it later, he realizes he does not really feel strongly about the brand of copy machine used in the office. Chin should probably adopt a(n) ________ conflict-handling style when trying to resolve this matter with Brad. Multiple Choice compromising collaborating accommodating avoiding forcing

Answers

Answer: accommodating

Explanation:

Conflict management simply means how dispute can be solved. We've different conflict management styles such as accommodating, avoiding, compromising, collaboration and competing.

With regards to the question, the conflict-handling style that Chin should adopt when trying to resolve this matter with Brad is "accommodating".

This style is about simply putting the other parties needs before one's own. You allow them to ‘win’ and get their way.

Accommodation is typically used to keep peace and in situations whereby an individual doesn’t really care like the other person involved.

ESD wants to determine the best order size for 2x4x6 pressure treated pine lumber required for making custom cabinets. ESD's estimated annual demand, ordering cost and carrying cost are provided below. Round your answer to the nearest whole number. Annual Demand: 6,750 boards Cost per Order: $225 Carrying Cost: $4.25

Answers

Answer:

the economic order quantity is 845 units

Explanation:

The computation of the economic order quantity is shown below;

As we know that

Economic order quantity is

= √2 × √annual demand × √ordering cost ÷ √carrying cost

= (√2 × √6750 × √$225) ÷ (√4.25)

= √3,037,500 ÷ √4.25

= √7,14,705.88

= 845 units

Hence, the economic order quantity is 845 units

The candy company is considering a new manufacturing process that costs $0.30 per unit for the first 400,000 units. For additional units, up to 725,000, the cost is $0.20 per unit. For all additional units over 725,000, the cost is $0.10 per unit. Which of the following ranges of total units contains the point where the cost of the new process is equal to the cost of the original process (where the cost is $0.21 for the first 500,000 units and $0.13 for all additional units)?

a. From 2,335,000 to 2,345,000
b. From 2,325,000 to 2,335,000
c. From 2,345,000 to 2,355,000
d. From 2,365,000 to 2,375,000

Answers

A I believe it is a I’m not sure

Mr. and Mrs. Maxwell are equal partners in Family partnership. The Maxwell's marginal tax rate is 35%. Next year, the partnership is expected to generate $200,000 of ordinary income. The Maxwells are considering transferring 20% interests in the partnership to each of their children. Their daughter, Melissa, has a 12% marginal tax rate. Their son, Mark, has a 22% marginal tax rate. Calculate the expected annual tax savings to the family from the proposed transfer of partnership interests.

Answers

Answer:

The right answer is "$14,400". A further solution is provided below.

Explanation:

The given values are:

Ordinary income,

= 200,000

Maxwell's marginal rate,

= 35%

Melissa's marginal rate,

= 12%

Mark's marginal rate,

= 22%

Now,

Form transfer to Melissa, the savings will be:

= [tex]200000\times .2\times (35 - 12) \ percent[/tex]

= [tex]920 0[/tex] ($)

Form transfer to Mark, the savings will be:

= [tex]200000\times .2\times (35-22) \ percent[/tex]

= [tex]5200[/tex] ($)

hence,

The expected annual tax savings will be:

= [tex]9200+5200[/tex]

= [tex]14,400[/tex] ($)

Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for August appear below: Sales revenues, Consumer $390,000 Sales revenues, Commercial $530,000 Variable expenses, Consumer $179,000 Variable expenses, Commercial $265,000 Traceable fixed expenses, Consumer $59,000 Traceable fixed expenses, Commercial $64,000 In addition, common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Group of answer choices $88,000 $353,000 $476,000 -$177,000

Answers

Answer:

Net Operating income of the company is $88,000.

Explanation:

Segmented Income Statement      

  Consumer Commercial Total

Sales revenue   390000 530000 920000

Less: Variable cost   179000 265000 444000

Contribution margin   211000 265000 476000

Less: Traceable fixed cost   59000 64000 123000

Segment margin   152000 201000 353000

Less: Common Fixed cost     265000

Net Operating income     88000

In the financial abbreviation APR, the A stands for _______. a. approved, b. annual, c. actual, d. average

Answers

APR

The answer is option B: "annual."

APR stands for "Annual Percentage Rate." It is a term used to describe the annualized interest rate charged on a loan or credit card. APR is a measure of the cost of borrowing money and is expressed as a percentage. It includes not only the interest rate on the loan, but also any additional fees or charges that may be associated with borrowing the money. The APR helps borrowers compare the costs of different loans and credit cards, as it reflects the true annual cost of borrowing money.

Hope This Helps You!

What is the modified internal rate of return (MIRR) of this project? Assume that the required rate is 12%
Year CF
0 $5,500
1 $450
2 $1,800
3 $3,200
4 $550
5 $2,130

Answers

$1,800 seems correct for the given question

I don’t know what the project is so I am not 100% sure this is correct but that would be my best guess.

Hope this helps have an excellent day!

An entity had the following account balances at year end. Sales $452,000 Cash 23,400 Accounts payable 14,300 Rent expense 3,700 Accounts receivable 9,400 Cost of goods sold 214,000 Land 104,000 Unearned revenue 6,800 Gain on sale 17,500 Equipment 28,800 Inventories 2,200 Notes payable 67,000 What is the amount of total current assets reported on the balance sheet

Answers

Answer:

Total Current Assets =  35000

Explanation:

The current assets are the assets of a business which are expected to be used or sold within a year. These assets normally include cash, cash at bank, accounts receivables, inventory etc. The total current assets for the given question will be,

Current Assets

Inventory                                   2200

Accounts Receivable               9400

Cash                                          23400

Total                                          35000

Refer to Figure 5-1. With reference to Graph A, at a price of $10, total revenue equals:
A. $ 1,000.
B. $ 500.
C. $ 400.
D. $ 200.
Question 8
Refer to Figure 5-1. With reference to Graph A, at a price of $5, total revenue equals:
A. $200.
B. $400.
C. $500.
D. $1,000.
Question 9
Refer to Figure 5-1. Graph B represents a demand curve that is relatively . . Total revenue as the price decreases from $10 to $5.
A. inelastic; decreases
B. elastic; decreases
C. elastic, increases
D. inelastic; increases

Answers

According to the Graph A, at a price of $10, total revenue equals $ 400. Graph A, at a price of $5, total revenue equals $ 500. So, the correct option is 1(C), 2(C), 3(A).

What do you mean by the demand curve?

A visual illustration of the link between product price and quantity desired in economics. The graph is built with amount demanded on the horizontal axis and price on the vertical axis.

Individual demand curves and market demand curves are the two forms of demand curves. A graphic depiction of the demand timetable is shown.

Here,

(1) With reference to Graph A:-

Price = $10

Corresponding quantity demanded = 40

Total Revenue= Price × Demand

Total Revenue = 10 × 40

Total Revenue = $ 400.

(2) With reference to Graph A:-

Price = $5

Corresponding quantity demanded = 100

Total Revenue= Price × Demand

Total Revenue = 5 × 100

Total Revenue = $ 500

(3) With reference to graph B, the demand is relatively inelastic as there is no major change in the quantity demanded due to greater price change. The total revenue also decrease when price decreases from $10 to $ 5.

Total Revenue at Price $10 = 10*30 = $300

Total Revenue at Price $5 = 5 * 40 = $200

So there is a decrease of total revenue by an amount of $100.

Hence, it represents the inelastic; decreases.

Therefore, from the following statements:

The Graph A, at a price of $10, total revenue equals $ 400. The Graph A, at a price of $5, total revenue equals $ 500. It represents the inelastic; decreases.

To know more about the demand curve, visit:

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