Mark Brainliest please
Sommer Inc is considering the new project, and yet we have to calculate under what circumstances the company have to take on the project. In order to assess the project, we need to compute the break-even cost such as the present value of future cash flows and calculate the WACC weighted cost of capital. It measures the weighted cost of equity and the after tax cost of debt. The following information are given: Debt to equity ratio = 0.90 Cost of equity = 13% After-tax cost of debt = 4.8% After-tax cost of savings = $2.7 million Debt to equity ratio = Debt / Equity = 0.90 Therefore, Value of firm = value of debt + value of equity Value of firm = 0.90E + E Value of firm
See the calculation of WACC as attachment
Management by objective is part of the goal-oriented appraisal system.
Using the goal-oriented appraisal system managers and their staff is focused on their current task and the end result of completing it. The set goals (what the want to accomplish) and strive for the end result to be a direct reflection of that goal.
Answer:
Return on Investment = 17%
Explanation:
Return on Investment = Net income from investment / Investment opportunity * 100
Where Net income from investment = (Sales * Contribution margin ratio) - Fixed expenses
Net income = ($1,530,000 * 30%) - $306,000
Net income = $459,000 - $306,000
Net income = $153,000
Return on Investment = $153,000 / $900,000 * 100
Return on Investment = 17%
Answer:
Total equivalent units= 135,000 units
Explanation:
<u>The weighted average method blends the costs and units of the previous period with the costs and units of the current period.</u>
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Conversion costs:
Units completed and transferred out= 133,000 units
Ending WIP= 10,000*0.2= 2,000 units
Total equivalent units= 135,000 units