Answer:
C. 11.05%
Explanation:
The computation of the cost of capital under the proposed leveraging is shown below;
cost of capital is
=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))
=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))
= 11.0500%
hence, the cost of capital is 11.05%
Answer:
The labor would increase
Explanation:
When the government decides to lower the income tax in the coming year, which is financed by the findings of a large as well as a previously unknown warehouse for real goods, then there would be an increase in the labor as the reduction in the income tax would cause more and more investment. And thus organizations and firms increase their efficiencies and create more and more output by increasing the labor.
Answer:
$60,000 income tax benefit
Explanation:
Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.
$200,000 x 30% = $60,000 income tax benefit
Kids' Corner, a toy store, ordered a supply of stuffed toys from Toyland Inc. The toys were supposed to be delivered on the 1st of December but were sent to Kids' Corner on the 5th of December. There has been a(n) _____ of contract.
A. compensatory breach
B. anticipatory breach
C. material breach
D. concurrent breach
<u>Correct Option:</u>
There has been a <u>material breach</u> of contract.
<u>Option: C</u>
<u>Explanation:</u>
A contract law concept that applies to a non-performance under the contract that is sufficiently serious to give the grieved party the right to sue for contravention of the contract, is understood as a material break or infringement.
If a substantive violation has occurred, the aggrieved party is therefore deprived of a contractual duty to further results. Here the Kids' Corner toy store ordered a supply of stuffed toys from Toyland Inc. but received order in delay date, which is considered as material breach due to late delivery of expected material.
Answer:
4.83 times
Explanation:
The computation of the inventory turnover is shown below:
= Cost of goods sold ÷ average inventory
where,
Average inventory = Raw material inventory + work in progress inventory + finished goods inventory
= $740 + $320 + $1,010
= $2,070
And, the cost of good sold is $10,000
Now put these values to the above formula
So, the answer would be equal to
= $10,000 ÷ $2,070
= 4.83 times
