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1 year ago

All else constant, the weighted average cost of capital for a risky, levered firm will decrease if:__________

1 answer:

4 0

All else constant, the weighted average cost of capital for a risky, levered firm will decrease if Increase in the outstanding debt of the company's yield to maturity Decrease in the tax rate of the company.

<h3>How does preferred stock affect the weighted average cost of capital?</h3>

Preferred stock, one of the equity forms, can be issued to lower a company's cost of capital because it is less expensive than common stock. Average Weighted Cost of Capital The weighted average cost of capital, or WACC, is one of the core ideas in corporate finance.

<h3>How much does preferred stock cost?</h3>

The Weighted Average Cost of Capital is also computed using the price of preferred shares. The Weighted Average Cost of Capital (WACC) of a company is a measure of its blended cost of capital, which includes equity and debt.

<h3>The weighted average cost of capital is influenced by what outside variables?</h3>

Corporate tax rates, the state of the economy, and market circumstances are some other outside variables that might impact WACC. The average after-tax cost of a company's multiple capital sources is known as the weighted average cost of capital (WACC). It consists of bonds, other debt, common stock, and preferred stock.

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At its $60 selling price, Atlantic Company has sales of $15,000, variable manufacturing costs of $4,000, fixed manufacturing cos

Kay [80]

Answer:

$28

Explanation:

Step 1:

If a company sells a product at $60 each and makes a sale of $15,000, the number of units of items produced is

$15,000 ÷ $60 = 250 units.

Step 2:

To calculate the company's contribution margin per unit,

we have, (unit selling prices - unit production cost)

unit selling price is #60

unit cost of production is (total cost of prodcution ÷ number of units)

total cost of production is $4,000+ $1,000+ $2,000+ $1,000 = $8000

Unit cost of production is $8000 ÷ 250 = $32

i.e it takes $32 to manufacture 1 product.

Contribution margin = $60 - $32

= $28

∴ the contribution margin is $28.

Cheers.

6 0

3 years ago

What is the difference between sole proprietor and partnership?

sveticcg [70]

Answer:

A sole proprietorship is a person who owns the business and is personally responsible for its debts. It is not a legal entity.

A partnership partnership shares the responsibilities, resources, and losses

Explanation:

3 0

3 years ago

If no fixed duration of the partnership is specified, the partnership is a partnership in perpetuity, which means that the partn

arsen [322]

The answer is b. false.

In the absence of a partnership agreement on fixed duration, the Partnership Act 1890 may apply.

<span>Under the Act, a partnership will be automatically dissolved if: a partner dies</span>

<span>· </span>a partner becomes bankrupt;

<span>· </span>the court orders it to be dissolved;

<span>· </span>it's illegal to carry on the business of the partnership;

<span>· </span><span>the partnership was created meet a goal and this specific objective or the project is complete; or</span>

<span>a partner gives notice to dissolve the partnership to the other partners. The </span>

7 0

3 years ago

Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginn

NNADVOKAT [17]

Under- or Over-Applied Manufacturing Overhead:

Under- or Over-Applied Manufacturing Overhead refers to the balance in the manufacturing overhead control account after the actual overhead costs that were incurred and the applied overhead for the period has been recorded

1 .The appleid overhead is the predetermined rate of $2.40 per machine hour multiplied by the actual number of machine hours (75,000), so it is $180,000.

The applied overhead is debited to work-in-process inventory and credited to the manufacturing overhead account.

2. The underapplied or overapplied overhead for the year is the difference between the actual and applied overhead. We can show it in the T-account like this:

3. The company estimated its total overhead cost to be $192,000 and its total machine hours to be 80,000. The actual overhead cost was $184,000 and the actual machine hours were 75,000. We can see that the main reason why the manufacturing overhead was underapplied was the fact that it worked fewer machine hours than anticipated with a proportional decrease in the manufacturing overhead costs incurred. This is normal because an element of manufacturing overhead is fixed.

To know more about overhead applied manufacturing overhead:

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3 0

1 year ago

If you've been a victim of identity theft, what should you do after contacting the company that reported the suspicious charge a

katrin [286]

You should always review your credit card statements/reports after being a victim of identity theft, this way it will tell you how much was stolen and how much your bank will need to cover.

7 0

3 years ago

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