Answer: C. $40 million.
Explanation:
By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.
The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.
Total compensation = No. of shares * fair value of shares
= 15,000,000 * 8
= $120,000,000
Apportioned over 3 years;
= 120,000,000/3
= $40,000,000
Answer:
B. Executives
Explanation:
Option E is wrong. Students do not need high-end briefcases for school or other tasks.
Option D is incorrect. Postal workers do not need any expensive briefcases to carry postal service and letters.
Option C is false. Construction workers cannot afford expensive briefcases.
Option A is not correct. Police officers have not necessary to have those briefcases.
Option B is correct. Executives often need high-end briefcases to keep essential things with them. They can also afford expensive bags.
It goes up because you are paying your payments therefore building credit by showing you are trustworthy..
Answer:
$4,269,950
Explanation:
The Cost of an asset include Purchase Cost and other costs directly incurred to put the asset in the location and condition intended for use by management.
Calculation of Cost of the Building :
Architect’s fees $46,800
Insurance $3,600
liability insurance $3,900
Excavation $15,660
Contractor $4,200,000
Total $4,269,950
Therefore,
The cost of the building that should be recorded by Wilson Co. is $4,269,950
Answer:
WACC = 0.079 and firm value = 12,658.23.
Explanation:
WACC is equal to
Where debt cost is 0.05, debt weight is 0.3, tax rate is 0.4, equity cost is 0.1 and equity weight is 1-0.3 = 0.7
So, WACC = 0.05*0.3*0.6 + 0.1*0.7 = 0.079 or 7.9%.
The value of the fir is calculated FCF/WACC, in this case 1,000/0.079 = 12,658.23.
