The answer is net income
Net income is the amount of capital that the Company's made during an operational year after all relevant expenses have already been deducted.
Some amount of the net income will be shared to shareholders according to the percentage, and some of it will be put in company's capital to expand the operation.
Answer: im not sure don't use my answer.
Explanation: CAHS CASH CASH
Answer:
a.The ending work in process inventory is $ 146,575
Explanation:
To determine the ending work in process inventory, we need to do the following computations:
No of units in ending inventory 22,000 units
Material cost in ending inventory
22,000 units * 100 % (completion) * $ 2.65 $ 58,300
Conversion costs in ending inventory
22,000 units * 75 % (completion) * $ 5.35 <u> $ 88,275</u>
Total value of Ending work in process inventory <u> $ 146,575</u>
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%