1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Airida [17]
3 years ago
7

A company invests $1 million to clear land and plant pine trees. The trees will mature in 10 years and the company expects to se

ll them for $3 million. What will be its annual rate of return on this investment
Business
1 answer:
Len [333]3 years ago
7 0

Answer:$300,000

Explanation:if the company sells the trees at the rate of $3000000 in 10 years, the annual rate of return on $ 1000000 investment will be $300000 ($3000000/10=$300000).

You might be interested in
Kountry Kitchen has a cost of equity of 10.6 percent, a pretax cost of debt of 5.2 percent, and the tax rate is 39 percent. If t
kap26 [50]

Answer: .27

Explanation:

The Debt to Equity Ratio is the amount of Debt per dollar that the company owes per dollar of Equity. It must add up to 1.

The Weighted Average Cost of Capital measures just how much a company needs to pay to it's capital holders including shareholders and debt holders.

The formula is,

WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)

Remember that Debt is tax deductible so the After tax cost of debt should be,

= 5.2% ( 1 - tax rate)

= 5.2% * ( 1 - 39%)

= 3.172%.

The debt weight is the amount of debt that the company has per dollar so that means that it is also the Debt to Equity ratio. Denote it as 'x' to find it. Remember that they must add up to one.

WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)

8.59% = 10.6% ( 1 - x) + 3.172%( x)

8.59% = 10.6% - 10.6%x + 3.172%x

8.59% = 10.6% - 7.428%x

7.428%x = 10.6% - 8.59%

7.428%x = 2.01%

x = 0.271

= 27%

Debt to Equity is 0.27.

7 0
3 years ago
Standard cost per output unit for each variable direct cost input is calculated by multiplying?
a_sh-v [17]

Standard cost per output unit for each variable direct cost input is calculated by multiplying developed for a period for a planned output. An estimated expense that typically happens throughout the creation of a good or provision of a service is called a standard cost.

In other words, standard cost is the estimated sum of money a business will need to spend in order to create a something or provide a service under typical circumstances. Examples include payments due for rent, utilities, insurance, office staff salary, and supplies, among others. the normal fixed cost is $100,000, and the hourly rate is $15.

To learn more about standard cost, click here.

brainly.com/question/4557688

#SPJ4

7 0
2 years ago
The adjusted trial balance of Windsor, Inc. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022
d1i1m1o1n [39]

Answer

                                     Windsor, Inc

                           Income Statement (Partial)

                           For the year October 31, 2022

Revenue

Sales                                                                      $908,100

Less: Sales return and allowance     $19,800

          Sales Discount                         <u>$14,500</u>

                                                                               <u>$34,300</u>

Net Sales                                                                <u>$837,800</u>

4 0
3 years ago
onceptual Connection: For each situation, identify the possible root cause(s) of the activity cost (such as plant layout, proces
Minchanka [31]

Answer:

Explanation:

For each situation, identify the possible root cause or causes of activity cost, among these:

1. Plant Layout

2. Process design

3. Product design

(A) PROCESS DESIGN

The design of the process of production is the root cause of activity cost here. From the rates given, it's clear that the manual method of production costs more time and money than the mechanical production method.

A minor cause of activity cost here is the PRODUCT DESIGN; the cost of which varies with the use of labour and the use of machine.

(B) PRODUCT DESIGN

Change in design of the gear (removal of some component parts) reduces set up time and cost.

(C) PLANT LAYOUT

Redesign of manufacturing plant saves the time and cost of moves.

3 0
3 years ago
which of these postsecondary degrees comes after an associate degree (going from lowest to highest) A. PhD B. High school diplom
zalisa [80]
After Associates degree, it would be Bachelors degree. Hope this helps. :)
7 0
3 years ago
Read 2 more answers
Other questions:
  • What is the term for the relationship between printer and paper?
    14·1 answer
  • You expect KT Industries (KTI) will have earnings per share of $3 this yearand expect that they will pay out $1.50 of these earn
    11·1 answer
  • The total value of commodity A produced in Country X increased from​ $500,000 in 2011 to​ $700,000 in 2012. According to​ Laura,
    7·1 answer
  • At the beginning of 2016, robotics inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was
    14·1 answer
  • Manistee Corporation reported taxable income of $1,200,000 this year and paid federal income taxes of $408,000. Not included in
    12·1 answer
  • Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar
    14·1 answer
  • Say that investment increases by $60 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 4. I
    15·1 answer
  • Jessica saw an advertisement in the newspaper in which a company was selling its product in the local supermarket for $99, thus
    13·1 answer
  • if a client would receive virtual currency as a gift, what would the client use as their basis for reporting purposes?
    7·1 answer
  • If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? write an exponential f
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!