Answer:
The $5,400 is the amount should Bad Brads BBQ record the equipment.
Explanation:
According to the Generally Accepted Accounting Principles (GAAP), the amount of asset is recorded at cost or fair market value which ever is lower.
The motive behind this is to present the financial statement in true and fair value rather than mislead values.
Since in the given question, the equipment purchase cost is $5,000 and shipping charges is $400.
So,
The total cost is = Purchase cost + shipping charges
= $5,000 + $400
= $5,400
And, the fair market value is $7,000.
By using the above explanation, the $5400 is the lesser amount than the $7,000.
Hence, the $5,400 is the amount should Bad Brads BBQ record the equipment.
Answer:
WACC (CAPM) 5.2%
WACC (ICAPM) 5.03%
Explanation:
The weighted average cost of capital is
Ke * E/ E+D + Kd * (1 -t) D / E+D
Ke = Rf + (Rm - Rf) * 
Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12
Ke (CAPM) = 7.532%
Kd (CAPM) = Kd (1-t)
Kd (CAPM) = 7.60 (1-39%)
Kd (CAPM) = 4.636%
WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%
WACC (CAPM) = 5.2164%
Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86
Ke (ICAPM) = 6.596%
Kd (ICAPM) = Kd (1-t)
Kd (ICAPM) = 7.60 (1-39%)
Kd (ICAPM) = 4.636%
WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%
WACC (CAPM) = 5.03%
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
<span>The answer would be this is a monopolistic competition. This is a kind of imperfect rivalry such that many creators sell merchandises that are distinguished from one another (for example, its branding or excellence) and henceforth are not perfect alternatives.</span>
Answer:
The Silverside Company
Project 1's Payback Period
= Initial Investment/Annual cash flows
= $400,000 / $90,000
= 4.44 years.
Explanation:
Project 1:
Initial Investment = $400,000
Useful life = 5 years
Annual cash inflows for useful life = $90,000
The Silverside Company's payback period calculates the time or number of years that it would take the company to recover from its initial investment in Project 1. This is the simple payback period calculation. There is also the discounted payback period calculation. This method discounts the annual cash inflows to their present values before the calculation is carried out. This second method gives a present value perspective on the issue.
