Answer:
0.2
Explanation:
The weighted average cost of capital (WACC) is calculated as below:
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E , where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
r_D: pre-tax cost of debt;
r_E: cost of equity;
t: tax rate
Rearrange above formula a bit, we get:
WACC = (D/A) x r_D x (1-t) + (1 - D/A) x r_E
Putting all the numbers together, we have:
10.9% = (D/A) x 8.9% x (1 - 38%) + (1 - D/A) x 12%
Solve the equation, we get D/A = 17% or D/E = 0.2
So, target debt−equity ratio is 0.2
Answer:
c The economy is slowing down and headed towards recession
Explanation:
The global rating agency downgraded many home builders including Hovnanian and cited problems in the mortgage market. The financial crisis of 2008/9 was triggered by slump in mortgage market. The sales result of Hovnanian indicates decline in home sales. There seems to be a liquidity squeeze as banks stopped new lending for mortgages.
<span>If you the friend you rode out with is under the influence, there are different ways you can approach the situation to make sure you both get home safely without either if you driving home. The first option is to call a cab or some type of transportation system where you live. The car will be okay and can be picked up the next day. You can call your parents or your friends’ parents for a ride home. Though they may not be happy about the situation, it’s better than drinking and driving. The last option would be to call the Police for a ride home. Although that may seem intimidating, it sure beats getting pulled over for driving under the influence. </span>
Answer:
1. Job A256 20
Job A258 160
2.$3,760
3.$10,400
Explanation:
Calculation of cost per unit Job A256 =
Beginning balance 1200
Charged to the jobs during October:
Direct material 3600
Direct labor 800
Manufacturing overhead applied 1200
Total 6800
6800/Units completed 100
=68
Calculation of Cost per unit Job A258
Beginning balance $0
Charged to the jobs during October:
Direct material 1400
Direct labor 600
Manufacturing overhead applied 900
Total 2900
2900/Unit completed 200
=15
1.
Cost of goods sold
= (80 X $68) + (40 X $15) - $800
=5440+600-800
=6040-800
= $5,240
Finished goods JobA256
= 100- 80
= 20
Finished goods JobA258
=200 - 40
= 160
2.
Finished goods
= (20 X $68) + (160 X $15)
= $1,360+$2,400
=$3,760
3.
Calaculation of total value of work in process Cost of JobA257 and JobA260
Job A257
Beginning balance 500
Charged to the jobs during October:
Direct material 3500
Direct labor 1000
Manufacturing overhead applied 900
Total 5900
JobA260
Beginning balance $0
Charged to the jobs during October:
Direct materials $3,500
Direct labor 400
Manufacturing overhead applied 600
Total $4,500
Addition of the total of both JobA257 and JobA260
$5900 +$4,500=$10,400