Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.
Explanation:
The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.
Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.
Answer:
$7800
Explanation:
Barney's salary per month = $700
His salary for nine months = 9 × $700 = $6300
Research grant received = $1500
His gross income = his salary for nine months + research grant received = $6300 + $1500 = $7800
Answer:
True
Explanation:
Overhead is the total of indirect cost that is involved in the production of a good. An overhead could be made up of a budgeted cost or actual cost. Overhead is appropriate when it does not exceed 35% of the total revenue.
Because a large company could produce different goods, those goods undergo different process and as result of that, require different costs of production.
For this reason, departmental overhead rates are calculated to ensure that every part of the company has its own production cost and expenses set aside rather than having a general or single company overhead rate which could favor some departments and not favor some other departments.
Cheers.
Answer:
B.0.83
Explanation:
Data provided in the question
Total machines Available = 600
Number of machines used in a given year = 500
So by considering the above information, the utilization of spinning machines is
Utilization = Resource used ÷Resource available
= 500 ÷ 600
= 0.83
By dividing the resources used with the resources available we can get the utilization and the same is applied
