The trend toward hiring temporary workers is up.
Answer:
8.1%
Explanation:
Firstly, let look at the formula for calculating weighted average cost of capital (WACC):
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E + (PE/A) x r_PE, where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
PE: Market value of company preferred equity;
r_D: cost of debt;
r_E: cost of equity/retained earnings;
r_PE: cost of preferred equity;
t: tax rate
Putting all the numbers together, we have:
WACC = 35% x 6.5% x (1-25%) + 55% x 10.5% + 10% x 6% = 8.1%
Answer:
b) internal rate of return will exceed its required rate of return.
Explanation:
The internal rate of return is the discount rate at which the NPV = 0. If the NPV is positive when calculated using the project's discount rate, then the IRR is going to be higher than the discount rate.
Option A is wrong because the profitability index (PI) of a project is calculated by dividing the present value of its cash flows by its cost. If the NPV is positive, it means that the present value of its cash flows will be greater than the costs, so the pI will be more than 1.
Option C is wrong because if the costs exceed the benefits, then the NPV will be negative.
Option D is wrong because that would mean that the NPV is negative.
Option E is something made up that doesn't make any sense.
Answer:
The price of the airplane today is $24.15
Explanation:
In this question, we proportionate the items
Since, for the 1983 year, the price is given and the CPI for today and in 1983 is also given.
So, the price of the airplane would be
= CPI today × (Price in 1983 ÷ CPI in 1983)
= $24.15
We divide the 1983 price with the 1983 CPI and then multiply the CPI to get the price for today.
Answer: A - It results in a decrease in inventory
Explanation: Goods receipt will result in increased inventory as goods are received into the store or warehouse were it will be sold.
Goods receipt occurs during a procurement process therefore creating a financial accounting document called invoice and delivery note which will be used to ascertain the actual cost of the goods purchased and actual quantity of goods received.