Answer:
a) the required rate of return for all of a firm's capital investment projects.
Explanation:
The weighted average cost of capital refers to the blended cost of capital of a firm from all its sources. It is the proportionate representation of a firm's cost of capital from its various sources. A firm's sources of capital include bonds, common stock, preferred stocks, and other long term sources of are factored in WACC.
In calculating the WACC, each source of capital is proportionately weighted according to its percentage contribution to capital. The WACC is applied in capital budgeting as a firm preferred discount rate when calculating the net present value.
Answer: Option A
Explanation: In simple words, it refers to the software that is readily available in the market unlike the custom made software which are made for a specific purpose.
The cost of such software is less as they do not demand the expertise and time that is needed to manufacture a custom made software.
Hence from the above we can conclude that the correct option is A.
Answer:
how your day is going good?
Pre-tax cost of debt is calculated as -
Yield to maturity = [ Coupon payment + ( Face value - Price) / Number of periods ] / [ ( Face value - Price) / 2 ]
Coupon payment = 9.6 % / 2 * 1000 = $ 48
Face Value = 1000
Price = 113.5 % * $ 1000 = $ 1135
Number of periods = 20 (i.e. 10 years *2 )
Yield to maturity = [ $ 48 + ( $ 1000 - $ 1135) / 20] / [ ($ 1000 + $ 1135) /2 ]
Yield to maturity = 3.86 %
Annual yield to maturity = 3.86 % * 2 = 7.72 %
Answer: $57,000
Explanation:
Given that,
Beginning finished goods inventory in units = 0
Units produced = 7,000
Units sold = 5,100
Sales = $663,000
Materials cost = $140,000
Variable conversion cost used = $70,000
Fixed manufacturing cost = $490,000
Indirect operating costs (fixed) = $102,000
Total Variable cost of units produced = Materials cost + Variable conversion cost used
= $140,000 + $70,000
= $210,000
=
= $30
Units in ending inventory = Units produced - Units sold
= 7,000 - 5,100
= 1,900
Value of Variable costing ending inventory = Units in ending inventory × Variable cost per unit
= 1,900 × $30
= $57,000
