Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Answer:
ROI 87.5%
Explanation:
Return on Investment = return /investment
Total return
50,000 perating income + 20,000 residual income = 70,000 income
The asset could been adquire on lease or through liabilities, this is not investment. The investmetn made is the one done by the shareholders.
Stock Holders equity = investment = 80,000
The shareholders invest this amount to generate
70,000 dollars of return
ROI 70,000/80,000 = 87.5%
Answer:
Overhead cost allocated to steel bars = $4.6
6,600 = $30,360
Explanation:
Provided information,
Two products manufactured
Steel Bars and Titanium bars
Number of hours = 1 hour each
Total units produced
Steel = 6,600
Titanium = 3,400
Total hours @ 1 hour for each = 6,600 + 3,400 = 10,000
Total Setup cost = $46,000
Cost per hour based on direct labor hours = $46,000/10,000 = $4.6
Overhead cost allocated to steel bars = $4.6
6,600 = $30,360
The total costs = Total variable costs + Total fixed costs
Given,
Average variable costs = $ 40
Average fixed cost = $ 10
Tablets produced during the year = 250
Total variable cost = Average variable costs × Tablets produced during the year
Total variable cost = 250 tablets × $ 40 = 10,000
Total fixed cost = Average fixed costs × Tablets produced during the year
Total fixed cost = 250 tablets × $ 10 = $ 2,500
Total costs = Total variable cost + Total fixed cost
Total costs = $ 10,000 + $ 2,500 = $ 12,500
Answer:
Letter c is correct. <u>It encourages participation from everyone.</u>
Explanation:
People are encouraged to participate in a nominal group technique because it is comprehensive to all participants.
This technique consists of creating group dynamics where each member can express their opinion about what is being proposed by voting, independently and silently, which consequently encourages the breakdown of shyness and reduces the pressure on the participant. This technique has positive effects by balancing the participation of all people and by motivating the group's sense of belonging and effectiveness.