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Angelina_Jolie [31]
3 years ago
14

Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation

and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be
a. $11,760.
b. $9,600.
c. $9,840.
d. $14,160.
Business
1 answer:
Sholpan [36]3 years ago
6 0

Answer:

a. $11,760. 

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Cost of asset = $60,000 + $8,000 + $2,800 = $70,800

($78,800 - $12,000) / 5 = $11,760. 

I hope my answer helps you

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In order to alleviate the effects of bias in employment testing, employers might want to use ________ because they typically do
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Answer: a. tests of conscientiousness

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3 years ago
Company A considers buying company B by means of a tender offer. Company B will accept any offer of A which reflects a fair valu
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Answer:

the price per share in the case when A offers B is $200

Explanation:

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The same is to be considered

3 0
3 years ago
Rene would like to explore a career that would allow her to work with customers or clients. Which two of the following careers a
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I believe the answer is:

(B)radio announcer

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3 years ago
Read 2 more answers
1) A stock pays a dividend of $10 per share. It has a cost of capital, K of 8%. It has a constant growth rate of 3%. Use the Con
alekssr [168]

Answer:

answer is A) $206 B) $61.31

Explanation:

to calculate price of the stock at zero we use dividend discount model formula

P0= D(1+G)/(r-g)

     10(1.03)/(0.08-0.03)

       $206

b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share

then calculate divide growth rates

D1=2*1.3 =2.6

D2=2*(1.3)(1.3)=3.38

D3 = 2*(1.3)(1.3)(1.3)=4.394

Claculate the discount rate using CAPM according to given information

R= 0.2+ 1.5(0.08-0.02)

 = 0.11/11%

Use the dividend discount model to calculate the price of the stock

P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)

2.342+2.743+56.225

=$61.31

7 0
3 years ago
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