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Flura [38]
3 years ago
14

The authors argue that what we need is "expeditionary economics." this, they say, can shift afghanistan's production possibiliti

es curve outward by
Business
2 answers:
OlgaM077 [116]3 years ago
8 0
<span>The authors argue that what we need is "expeditionary economics." this, they say, can shift Afghanistan's production possibilities curve outward by </span>enabling individuals to build a stable civil society in order to liberate their natural entrepreneurial abilities.
White raven [17]3 years ago
4 0
<span>By investing in education, Afghan society can be made a much more civil society. This civil society will help individuals to develop entrepreunial skills and hence the production possibility curve of Afghanistan will shift outwards as entrepreuners will help in increasing production and income level of Afghan people.</span>
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GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi
AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

                                   = 8.00 % x (1 - 0.35)

                                   = 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

           = 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0
3 years ago
For most countries and most firms, the domestic country beta Multiple Choice can be no lower than its world beta. is normally mu
stira [4]

Answer:

Can be no lower than its world beta

Explanation:

For most countries and most firms, the domestic country beta c<u>an be no lower than its world beta.</u>

7 0
4 years ago
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery
vekshin1

Answer:

Most Company

                                                          Project Y     Project Z

1. Annual expected net cash flows   $140,500  $151,347

2. Payback period                                2.5 years   2.3 years

3. Accounting rate of return                 15.3%         9.9%

4. Net present value, using 9%        $105,220   $33,059

Explanation:

a) Data and Calculations:

                                                          Project Y     Project Z

Initial investment costs                    $350,000    $350,000

Useful life of project                         4 years        3 years

Salvage value                                    $0                $0

Annual depreciation                          $87,500     $116,667

Sales                                                $390,000    $312,000

Expenses

Direct materials                                   54,600       39,000

Direct labor                                          78,000       46,800

Overhead including depreciation     140,400     140,400

Selling and administrative  expenses 28,000      28,000

Total expenses                                  301,000    254,200

Pretax income                                     89,000      57,800

Income taxes (40%)                            35,600      23,120

Net income                                       $53,400   $34,680

Accounting rate of return                   15.3%         9.9%

= Net income/Initial investment cost * 100

Annual Cash inflows:

Net income                                       $53,400   $34,680

Annual depreciation                           87,500    116,667

Annual expected net cash flows   $140,500  $151,347

PV annuity factor at 9% for 4 years    3.240       2.531              

PV of annual cash inflows            $455,220 $383,059

Net Present Value = (Initial investment - PV of annual cash flows)

NPV =                                             $105,220   $33,059

Payback period = Initial investment cost/Annual cash inflow

6 0
3 years ago
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $33 per pound and costs $28 pe
Lyrx [107]

Answer:

Differential cost of producing Product C = $0

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  </em>

                                                                                                   $

Sales revenue after the split off point (Product C)                    58

Sales revenue at the split-off point  (Product B                        <u> 33</u>

Additional sales revenue per unit                                              25

Further processing cost                                                            <u>  (25)</u>

Differential cost of Product C                                                       <u>  0</u>

Differential cost of producing Product C = $0

<em> Note that the cost incurred up until the split off point was not included because it is Irrelevant to the decision to process further. It has already been incurred , hence it is a sunk cost</em>

6 0
3 years ago
The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 87,000 (a) 93,000 5,000 Work I
pogonyaev

Answer:

$251,000

Explanation:

Calculation to determine the amount of cost of goods manufactured for the year

Using this formula

Cost of goods manufactured=Debit to Finished Goods+Credit to Work in Process

Let plug in the formula

Cost of goods manufactured =$226,000+$25,000

Cost of goods manufactured =$251,000 (entry f)

Therefore the amount of cost of goods manufactured for the year is $251,000 (entry f)

6 0
3 years ago
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