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polet [3.4K]
3 years ago
13

In general, firms should use their weighted average cost of capital (WACC) to evaluate capital budgeting projects because most p

rojects are funded with general corporate funds, which come from a variety of sources. However, if the firm plans to use only debt or only equity to fund a particular project, it should use the after-tax cost of that specific type of capital to evaluate that project. a. trueb. false
Business
1 answer:
Elodia [21]3 years ago
8 0

Answer:

b. false

Explanation:

Generally, this statement is incorrect because the company should be viewed as an ongoing company and the use of debt (or equity) to fund a given project will change the capital structure and this factor should determine the cost of capital on all projects on the target capital structure. "Prague Ekt financing "may be used and in particular the status of the project will be considered. It is a very specific situation, however, it" usually "is not.

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A customer has total assets of $436,000 and total liabilities of $314,000. The customer has just signed a contract to buy a new
natta225 [31]

Answer:

$122,000

Explanation:

Net worth refers to total assets minus total liabilities.

Therefore, the net worth of this customer can be calculated as follows:

Assets = Existing assets + A new car - Withdraw from existing checking account = $436,000 + $35,000 - $5,000 = $466,000

Liabilities = Existing liabilities + Borrowing from auto fiance company =  $314,000 + $30,000 = $344,000

Net worth = Assets - Liabilities = $466,000 - $344,000 = $122,000.

8 0
3 years ago
2 points Time Remaining 23 minutes 4 seconds00:23:04 eBookItem 7 Time Remaining 23 minutes 4 seconds00:23:04 On April 30, Gomez
mash [69]

Answer: $51,400

Explanation:

Credits to Accounts Receivable represent a reduction in the Accounts receivable amount.

The formula for Closing balance is:

Closing balance = Opening balance + Credit sales - Credits to accounts receivable

Making Credit sales the subject will make the formula:

Credit sales = Credits to account receivable + Closing balance - opening balance

= 56,800 + 17,000 - 22,400

= $51,400

6 0
3 years ago
Why do most economists believe that it is important for a country’s central bank be independent of the rest of the country’s cen
ohaa [14]

Answer:

For economists is important to avoid political interferance in the monetary policy. Populist governments often use the creation of money to justify their political programs, causing inflation and distortions on the market.

In the last report of FOMC is highlighted the behaviour of market labour and the lower expectations of inflation.

Explanation:

There are two tools commonly used in political economy to finance government programs: taxation and paper currency print. When the central bank is not independent, the government has an incentive to print money to fund their programs, causing inflation. In economic science has been demonstrated that inflation is always caused by monetary phenomena.

5 0
2 years ago
In 2019, Alliant Corporation acquired Centerpoint Inc. for $352 million, of which $62 million was allocated to goodwill. At the
Komok [63]

Answer:

1. $34 million

2. $0

Explanation:

Given that,

Fair value of Centerpoint Inc = $256 million

Book value of Centerpoint's net assets (excluding goodwill) = $228 million

Book value of Centerpoint's net assets (including goodwill) = 290 million

1. Actual Value of Goodwill:

= Fair Value of Centrepoint Inc. - Book Value of Net assets (excluding goodwill)

= $256 million - 228 million

= $28 million

Loss on Impairment of Goodwill:

= Goodwill recorded - Actual value of goodwill

= $62 million - $28 million

= $34 million

2. In this case Fair value of ($318 million) is more than Book value ($290 million) then there will be no Impairment Loss.

It means that the loss on Impairment of Goodwill = $0.

6 0
2 years ago
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components depart
Arlecino [84]

Answer:

Way Cool

1. Overhead Cost per unit for each product line:

                                      Model 145                        Model 212

Overhead cost per unit    $434.97                         $457.59

2. Total cost per unit for each product line:

                                      Model 145                        Model 212

Total cost per unit           $634.97                          $569.59

3. The profit or loss per unit for each model:

                                      Model 145                        Model 212

Market price                      515.95                             303.34

Loss per unit                   $119.02                          $266.25

Explanation:

a) Data and Calculations:

Process Activity     Overheads   Driver Quantity     Components  O/H rates

Changeover          $ 627,450     Number of batches        890          $705

Machining                 379,155      Machine hours            8,050            $47.10

Setups                      108,000      Number of setups            60       $1,800

Total                     $ 1,114,605

Finishing

Welding                 $ 220,580     Welding hours             4,100       $538

Inspecting                 254,200     Number of inspections 820       $310

Rework                        47,200     Rework orders               160       $295

Total                       $ 521,980

Support Purchasing $ 158,600   Purchase orders           488      $325

Providing space            30,900   Number of units        8,400      $3.68

Providing utilities         126,180    Number of units        8,400      $15.02

Total                        $ 315,680

Additional production information concerning its two product lines follows.

                                 Model 145      Model 212

Units produced            2,800             5,600

Welding hours                800              3,300

Batches                           445                 445

Number of inspections   510                 310

Machine hours            2,750             5,300

Setups                               30                  30

Rework orders                 90                   70

Purchase orders            325                 163

                                 Model 145                            Model 212

Units produced            2,800                                  5,600

Welding hours              $430,400 (800*$538)    $1,775,400 (3,300 * $538)

Batches                            313,725 (445*$705)          313,725 (445*$705)

Number of inspections    158,100 (510*$310)             96,100 (310*$310)

Machine hours                129,525 (2,750*$47.10)   249,630 (5,300*$47.10)

Setups                               54,000 (30*$1,800)          54,000 (30*$1,800)

Rework orders                 26,550 (90*$295)            20,650 (70*$295)

Purchase orders             105,625 (325*$325)          52,975 (163*$325)

Total overhead costs $1,217,925                       $2,562,480

Units produced            2,800                                  5,600

Overhead cost per unit    $434.97                         $457.59

Direct labor and materials 200.00                             112.00

Total cost per unit           $634.97                          $569.59

Market price                      515.95                             303.34

Loss per unit                    $119.02                          $266.25

4 0
2 years ago
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