Answer:
option (C) 11.8%
Explanation:
Debts = 30%
Preferred stock = 10%
Common stock = 60%
before-tax cost of debt = 11%
cost of preferred stock = 10.3%
cost of common stock = 14.7%
New common stock sales cost = 16%
The weighted average cost of capital for the company
marginal tax rate = 40%
= Debt × before-tax cost of debt × (1 - tax)) + (Common stock × cost of common stock ) + (Preferred stock × cost of preferred stock )
= 0.30 × 0.11 × (1 - 0.40) + (0.60 × 0.147 ) + ( 0.10 × 0.103 )
= 0.0198 + 0.0882 + 0.0103
= 0.1183
Or
= 0.1183 × 100% = 11.83% ≈ 11.8%
Hence.
The correct answer is option (C) 11.8%
Project X has a $20,000 start-up cost and a $25,000 cash inflow in year 3. Project Y has a $40,700 cost and generates cash flows of $12,000, $25,000, and $10,000 over the course of its first three years. The projects are mutually exclusive, and the discount rate is 6%. You should approve the project in the end based on the irrs and npv of each individual project as well as your own assessment of those factors. X;Y:Y.
Start-up costs are the costs a business spent or incurred to establish an active trade or business, or to research establishing or acquiring an active trade or business. Start-up costs are sums paid or expended in connection with a current profitable activity that is intended to generate money prior to the activity becoming a fully operational trade or business. Equipment, incorporation fees, insurance, wages, and taxes are just a few of the startup costs. Although startup costs will differ depending on your business's industry and type, an expense for one firm might not be applicable to another. It helps you effectively launch your firm and maintain profitability after your doors are open to understand your expenses and how you will manage them.
Learn more about startup costs here
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The answer is that the given statement is True.
When firm has achieved greatest creation limit, firm should make extra speculation to extend generation plants and to accomplish this , firm should build the costs of the item which will influence the supply versatility.
To combat this stereotyping the HR director has decided to<u> "adopt more transparent practices".</u>
Nowadays, pay transparency is an interesting issue among HR and compensation experts. Pay transparency doesn't need to be a win or bust approach where everybody knows every other person's compensation. Or maybe, we trust transparency is a range. It's how much an association will examine its general pay rehearses. Pay transparency is significantly something other than the dollar sum a business pays every worker. It's additionally being more open about how pay was resolved and giving a clarification of the organization's compensation grades.
Answer:
Explanation:
There are primarily two types of costs, i.e. variable costs and the fixed costs. The variable cost is the cost which changes when the level of production changes, whereas the fixed cost is the cost which remains constant whether the level of output changes or not.
The variable costs also include indirect products, indirect labor and manufacturing equipment, and the fixed costs include taxes and depreciation costs.
The period cost is that cost which is related to the selling and admin expenses plus it is not capitalized.
Whereas the product cost is a mix of direct labor, direct material and the manufacturing overhead
So, the categorization is shown below:
1. Hamburger buns in a Wendy's outlet. = variable and product cost
2. Advertising by a dental office. = Fixed and period cost
3. Apples processed and canned by Del Monte. = variable and product cost
4. Shipping canned apples from a Del Monte plant to customers. = variable and period cost
5. Insurance on a Bausch & Lomb factory producing contact lenses. = fixed and product cost
6. Insurance on IBM's corporate headquarters.= fixed and period cost
