Answer:
The correct answer is D. A promise in a contract with a customer to transfer a good or service to the customer.
Explanation:
Performance obligations are those that the entity undertakes to carry out in the contract established with a client, performance obligations are related to the deliverables established or agreed upon in a contractual manner.
At the start of the contract, the entity must evaluate the goods or services promised in a contract with a customer and must consider as a performance obligation each commitment to transfer to the customer a good or service (or a group of different goods and services) or a series of different goods or services that are substantially the same and that have the same pattern of transfer to the client.
Answer:
WACC 13.85600%
Explanation:
First we calculate Eastern Pizza CAPM:
risk free = 0.08
market rate = 0.12
premium market = (market rate - risk free) 0.04
beta(non diversifiable risk) = 2
Ke 0.16000
Then we solve for WACC
Ke 0.16000
Equity weight 0.8
Kd 0.08
Debt Weight 0.2
t 0.34
WACC 13.85600%
The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.
Answer:
b) most shareholders have little direct control over how the company is managed.
Answer:
$33.44
Explanation:
The computation of the intrinsic value of the share is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.16 + $2.16 × 4.50%
= $2.16 + $0.0972
= $2.2572
The required rate of return is 11.25%
And, the growth rate is 4.50%
So, the intrinsic value is
= ($2.2572) ÷ (11.25% - 4.50)
= $33.44
Answer:
$2.8 billion per year
Explanation:
Currently the amount of surplus milk in the US is really high since the demand per capita for milk has decreased by 40% in the last 50 years. Excess milk is turned into cheese since it doesn't last very long, and the current amount of surplus cheese is 1.4 billion pounds.
If yous need on average 4 pints of milk per pound of hard cheese and 2 pints per pound of soft cheese, that means that the total surplus milk production is between 2.8 and 5.6 billion pints.
If the government is going to purchase that excess milk, then it is going to need at least $2.8 billion per year.
