Answer:
b. 320000
Explanation:
In order to calculate the joint cost of Gorp we need to understand what the method means and how it's used to calculate it. The adjusted sales method is used to allocate joint costs based on the prices the products are sold.
First of all we need to calculate the percentage of Selling price of Gorp to that of the total selling price of both Gorp and Gumm.
I.e: 60 ÷ (60+30) × 100
SP % of Gorp= 66.67%
Now we calculate joint cost allocated to Gorp.
Total joint cost of both Gorp and Gumm = $480000
Joint cost of Gorp = $480000 × 66.67%
Joint cost of Gorp = $320,000
Answer:
Correct option is 6.59
Explanation:
Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:
= $6.59
Therefore, Stock's price in the beginning of the year is $6.59.
Answer:
Below:
Explanation:
An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline. Extension strategies include rebranding, price discounting and seeking new markets.
Hope it helps...
It’s Muska..≧◔◡◔≦
Answer: See explanation
Explanation:
a. The company's total book value of debt will be:
= Value of debt + Value of zero coupon bonds
= $70 million + $100 million
= $170 million
b. The market value will be:
= Quoted price × Par value
= ($70 × 1.08) + ($100 × 0.61)
= $75.6 + $61
= $136.6 million
c. The aftertax cost of debt will be:
= (1 - Tax rate) × Pre tax cost of debt
= (1 - 35%) × 5.7%
= 65% × 5.7%
= 3.7%
