Answer:
a. -$82,250
Explanation:
Calculation for what is the projects initial cash
flow for net working capital
Initial cash flow=-$216,000 + $181,000 - ($525,000 *0.09)
Initial cash flow=-$216,000 + $181,000 - $47,250
Initial cash flow = - $82,250
Therefore the projects initial cash
flow for net working capital will be - $82,250
Walter Co. is a manufacturer because it uses raw materials, and has a stock of merchandise inventory, work-in-progress inventory, and finished goods inventory. The current assets of Walter Co. will be:
Current Assets:
Cash 6,000
Inventories
Raw materials inventory 21,000
Work in progress inventory 40,000
Finished goods inventory 25,000
Merchandise inventory 48,000
Total inventory 1,34,000
Other assets
Accounts receivable 41,000
Prepaid expenses 1,000
Current assets 2,22,000
A manufacturing company is a company that takes in raw materials processes the raw materials and then sells the finished goods manufactured in the market. So the current assets section of the balance sheet of Walter Co. is given which will be written on the right side of the balance sheet.
Learn more about manufacturing companies here:
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Answer:
to keep track of all business transactions in case of an audit
Answer:
a). Unemployment rate in March=8%
b). Unemployment rate in April=9.4%
Explanation:
a).
The unemployment rate can be expressed as;
R=P/L
where;
R=unemployment rate
P=number of unemployed persons
L=labor force
In our case;
R=unknown
P=number of unemployed persons=labor force-number of employed persons
P=100-92=8 million
L=100 million
replacing;
R=8/100=0.08×100=8%
The unemployment rate in March=8%
b).Unemployment rate for April
Unemployment rate={(total unemployed+discouraged workers)/(labor force+discouraged workers)}×100
total unemployed=8 million
discouraged workers=1.5 million
labor force=100 million
replacing;
Unemployment rate=(8+1.5)/(100+1.5)=(9.5/101.5)×100=9.4%
Unemployment rate in April=9.4%
Answer:
WACC 10.42614%
Explanation:
<u>First we use CAPM to solve for the cost of equity</u>
risk free 0.04
market rate
premium market (market rate - risk free) 0.08
beta(non diversifiable risk) 1.1
Ke 0.12800
Then we calculate the WACC (weighted average cost of capital)
D 80,000 bonsd x 1,000 = 80,000,000
E 4,000,000 shares x 40 = 160,000,000
E+ D 80,000,000 + 160,000,000 = 240,000,000
equity weight: 2/3
liability weight: 1/3
Ke 0.128
Equity weight 0.6667
Kd 0.086
Debt Weight 0.3334
t 0.34
WACC 10.42614%
