Answer:
E
Explanation:
In this question, we are told to state what the reaction of Koka and Zola will be;
Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.
Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .
So both Kukla and Zola are happy with the offer.
Answer:
INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million
Explanation:
Inventory turnover will be determined as :
Inventory turnover = Annual sales ( at cost ) / Inventory value
Annual sales this year = $72million
Inventory turnover = 8 times
Therefore , Inventory value of current year = $72/8 =$ 9 MILLION
If annual sales ( at cost ) increases by 25%, Inventory value also has to increase by 25% to maintain the same inventory turnover ratio next year
Therefore , increase in average inventory value required = 25% of $9 million = $2.25 million
INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million
Answer:
A. $80
B. $795
C. $0
Explanation:
Only expenses that can be directly attributed to the business are deductible.
Personal expenses will not be deductible.
A. Here the only deductible amount is the legal fees of $80. The speeding will not be charged to the business because it was as a result of personal negligence. The legal fees affect the business because the speeding related to a business asset.
B. Only the amount paid to reserve a spot will be deductible because it relates to expenses for the business to make profit. The money she spent on her children is a personal expense.
C. There is no deductible here. These activities were of a personal nature and in no way related to the operations of the business of operating the food truck.
Answer: c. Individuals who study music tend to be more intelligent.
Explanation:
The underlying assumption of the argument above is that the individuals who study music tend to be more intelligent.
This can be infered in the statement that "Generally, individuals that study music achieve more exceptional scores in subjects such as math and language arts". In this case, a connection was emphasized between academics and music.
Answer:
The company's cost of preferred stock for use in calculating the WACC is 9.65%
Explanation:
For computing the cost of preferred stock, the following formula should be used which is shown below
= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)
where,
Flotation cost = 1- rate
= 1- 4% = 0.96
= $9.50 ÷ ($102.50 × 0.96)
= $9.50 ÷ $98.4
= 9.65%
The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.
Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%
