Answer:
WACC = 9.7%
Explanation:
First lets calculate CAPM to identify the return on equity.
CAPM = Risk free rate + Beta(Market Premium)
CAPM = 4 + 1(8) = 12%
WACC
= weight of equity * return on equity + weight of debt * return on debt * (1 - tax)
This gives,
=(12/12+4) * 0.12 + [(4/12+4) * 0.04 * (1 - 0.30)]
WACC = 0.09 + 0.007 = 9.7%
Hope that helps.
Answer:
$118000
Explanation:
Calculation for conversion cost incurred
First step is to calculate the Prime Cost
Opening stock Of Raw Material $18000
Add: Material purchased $42000
Less: Closing stock of raw material ($15000)
Add: Direct Labour $30000
Prime Cost $75000
Now let calculate the conversion cost incurred
Prime cost $75000
Add: overhead expenses $40000
[($30000/ $7.50)**10]
( 4000 * $10=$40000)
Total $115000
($75000+$40000)
Add: opening work in progress $9000
Total $124000
($115000+$9000)
Less: Closing stock of work in progress ($6000)
Factory cost or conversion cost $118000
($124000-$6000)
Therefore For March, conversion cost incurred was $118,000
Answer:
The answer is
1. False
2. True
3. True
4. True
5. False
Explanation:
1. False. Banks does not keep the entire value of all customer deposits in the bank vault. Some customers deposit will be given out as loan and other Investment opportunities.
2. True. Loans given out to borrowers are part of customers' deposits.
3. True. Bank run occurs when customers try to withdraw their money from a bank at once, maybe the bank is in crisis.
4. True. Federal Deposit Insurance Corporation protects customers' deposits
5. False. The fractional reserve banking system requires all banks to keep part of customer deposits in the bank vault to prevent bank runs
I believe the answer is- marginal benefit!
Answer:
D
Explanation:
D is the answer sjkrkdrir
