Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
Answer:
$3,160
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
.
Given that Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual value of $3,300,
Annual depreciation
= ($28,300 - $3,300)/10
= $2,500
At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,300,
Net book value at the beginning of the eighth year (before overhauling)
= $28,300 - 7($2,500)
= $10,800
Capitalizing the overhaul cost,
Net book value at the beginning of the eighth year (after overhauling)
= $10,800 + $8,300
= $19,100
Given that the total estimated useful life was changed to 12 years with the residual value unchanged,
Depreciation for the eighth year
= ($19,100 - $3,300)/5
= $15,800/5
= $3,160
Answer:
Tammi's liability is d. limited to her investment in the stock.
Explanation:
Since Tammi has purchased a stock in a corporation, one of the fundamental property of a corporate is that the stock-holders of the corporation have a limited liability meaning shareholders are only legally responsible for the debts of a company only to the extent of their investment in the company.
So Tammi's liability is limited to her investment in the stock of Vivaldi Corporation.
Answer:
C. Reducing deposits and reserves by $5 million.
Answer:With unbounded message transmission time, clock differences are necessarily unbounded.
Explanation:Any user of network time protocol service must communicate by means of message passed over a communication channel.If there is a possibilty for bound to be set on time to transmit a message over a communication
channel, then the difference between the client’s clock and the value supplied by the network tiime protocol service would also be
bounded.
