Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Answer:
c.$188,150
Explanation:
April May June
Manufacturing costs* $157,700 $198,300 $201,000
Payment April Costs $118.275 $39,425
<u>Payment May Costs </u><u> 148,725</u><u> 49,575</u>
Cash Payments $ 188,150
None other costs will be paid in the month Of May.
*Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $870 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November.
D. Bras has an absolute advantage in coffee and jane has an absolute advantage in nuts
Answer:
$3,585
Explanation:
The computation under the FIFO method is shown below:
The total purchase units equal to
= 10 units + 25 units + 30 units + 15 units
= 80 units
Out of 80 units, the 25 units are sold, so the remaining 55 units are come under the ending inventory. The classification is shown below:
10 units at $60 = $600
25 units at $65 = $1,625
20 units at $68 = $1,360
So, the total would be
= $600 + $1,625 + $1,360
= $3,585
Answer:
13.76%
Explanation:
The computation of the interest rate required by law is shown below:
As we know that
Effective annual rate = (1 + Annual percentage rate ÷ number of days)^number of days - 1
0.1475 = (1 + Annual percentage rate ÷ 365)^365 - 1
(0.1475 + 1) = (1 + Annual percentage rate ÷ 365)^365
(1.1475)^ × (1 ÷ 365) = 1 + Annual percentage rate ÷ 365
So, the Annual percentage rate is
= [(1.1475)^ × (1 ÷ 365) - 1] × 365
= 0.1376
= 13.76%
