What is the net operating income for the month under absorption costing? A. $22,500
Answer:
Brokers must disclose the information regarding the improvement and the fact that the property's taxes will increase the next year. Neighborhood improvements are paid by Special Assessment Districts adding taxes to existing properties or increasing sales taxes. Buyers need to know what property taxes they are expected to pay, and in this case, the current property taxes must be adjusted to show the real amount that will be paid in the future.
This isn't something necessarily bad because you are going to pay higher taxes, but your neighborhood is also improving.
Answer:
7.38%
Explanation:
Calculation to determine what would be AJC's new WACC and total value
Using this formula
WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)
Let plug in the formula
WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)
WACC and total value=0.057+0.0168
WACC and total value=0.0738*100
WACC and total value=7.38%
Therefore would be AJC's new WACC and total value is 7.38%
Answer:
Option A is correct.
will earn a higher profit than Bright Nails
Explanation:
If sales of both saloons increases by an equal amount then Hard Nails<u> will earn a higher profit than Bright Nails.
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- The strategy of Hard Nails is that it is paying it's manicurists on a salary basis i.e it is a fixed cost. If sales increases Hard Nails will not give any extra amount to it's manicurists.
- On the other hand the strategy of Bright Nails is that it is paying it's manicurists on the basis of no. of customers they serve. So, if sales increases then it have to pay more amount to it's manicurists.
