Answer:
The correct answer is "$21490".
Explanation:
The given expenditures are:
January:
= $205000
September:
= $306000
December:
= $306000
Now,
January average will be:
= 
= 
($)
September average will be:
= 
= 
December average will be:
= 
= 
The total average will be:
= 
= 
($)
Hence,
The Interest capitalized for year 2021 will be:
= 
On substituting the estimated values, we get
= 
= 
($)
To own a electrical business
Answer:
Allocated to Totes =$ 13,620.94
Explanation:
<em>Allocated overhead to totes = OAR × actual direct labour cost </em>
Overhead Absorption Rate(OAR) = Estimated Overhead/Estimated Direct labour cost
Estimated Direct labour cost = (54×530) + (64× 390
)=$53580
OAR = $25,500/$53,580 = 47.59%
Allocated to Totes = 47.59% × (54×530) = 13,620.94
Allocated to Totes =$ 13,620.94
Answer:
option (A) 10 percent
Explanation:
Data provided in the question:
Dividend yield = 3 percent
Expected growth rate = 7 percent
Therefore,
The ABC's required return will be
= Dividend yield + Expected growth rate
or
The ABC's required return = 3% + 7%
or
The ABC's required return = 10%
Hence,
The ABC's required return is option (A) 10 percent
Answer:
WACC = 12.45%
Explanation:
WACC= cost of equity * weight + cost of pref. equity * weight + cost of debt * weight * (1 - T)
WACC = 0.6 * 16.8 + 0,03 * 11.4 + 0,37 * 8.3 * (1 - 0,34)
WACC is the weighted average of the costs of the company, so it is necessary to multiply the weight of each source of capital (equity, preferred equity and debt) for its corresponding cost. Debt has a partiuclarity and is that it is before taxes so it becomes a tax shield for the company and taxes in fact reduce the cost of debt, for that reason we also multiply the cost of debt by (1 - T)
