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3 years ago

Which of the following is included in the cost of constructing a building?

Business

1 answer:

Sloan [31]3 years ago

7 0

Answer:

The correct answer is (A)

Explanation:

Construction business is one of the difficult and risky businesses to do. There are many costs involved while constructing a building. Insurance cost during construction is important to take care of third party injuries, and it also provides financial coverage regarding property damage. In a construction business, a company is only allowed to start construction after they cover their insurance cost.

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Malkin corp. has no debt but can borrow at 8.75 percent. the firm’s wacc is currently 16 percent, and there is no corporate tax.

Artyom0805 [142]

Answer:

16%

17.3%

23.25%

16%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

As have the cost of capital, we need to calculate the cost of equity.

Cost of Capital = (Cost of Equity x Weightage of equity) + (Cost of Debt x Weightage of Debt)

No Debt

16% = (Cost of Equity x 1 ) + (8.75% x 0)

16% = Cost of Equity + 0

Cost of Equity = 16%

15% Debt and Equity is 85% (100%-15%)

16% = (Cost of Equity x 85% ) + (8.75% x 15%)

0.16 = (Cost of Equity x 0.85) + 0.013125

0.16 - 0.013125 = Cost of Equity x 0.85

0.146875 = Cost of Equity x 0.85

Cost of Equity = 0.146875 / 0.85 = 0.17279

Cost of Equity = 17.3%

50% Debt and Equity is 50% (100%-50%)

16% = (Cost of Equity x 50% ) + (8.75% x 50%)

0.16 = (Cost of Equity x 0.50) + 0.04375

0.16 - 0.04375 = Cost of Equity x 0.50

0.11625 = Cost of Equity x 0.50

Cost of Equity = 0.11625 / 0.50 = 0.2325

Cost of Equity = 23.25%

WACC for b and c are 16%

7 0

3 years ago

Read 2 more answers

Pizza International, Inc. operates 700 family restaurants around the world. The company’s annual report contained the following

Thepotemich [5.8K]

Answer:

$22,546

Explanation:

The preparation of the Cash Flows from Operating Activities -Indirect Method is shown below:

Cash flow from Operating activities

Net loss -$9,473

Add: depreciation $33,350

Less: Increase in Receivables -$179

Add: Decrease in Inventory $661

Less: Increase in Prepaid Expenses -$673

Less: Decrease in Accounts Payable -$2,291

Less: Decrease in Accrued Liabilities -$728

Add: Increase in Income Taxes Payable $1,879

Net Cash flow from Operating activities $22,546

Note payable is considered long term liabilities. Hence, we ignored it

The positive sign shows the inflow of cash while the negative sign shows the outflow of cash and the same is shown above

7 0

3 years ago

Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the

Reika [66]

Answer:

Instructions are below.

Explanation:

We were provided with the activity rates. To calculate the total cost, first, we need to allocate overhead to both product lines:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product K425:

Allocated MOH= (6*80) + (4*100) + (50*1) + (90*1) + (14*1) + (9*80)

Allocated MOH= $1,754

Product M67:

Allocated MOH= (6*500) + (4*1,500) + (50*4) + (90*4) + (14*10) + (9*500)

Allocated MOH= $14,200

Now, we can calculate the unitary cost:

Product K425:

Unitary cost= 13 + 5.6 + (1,754/200)

Unitary cost= $27.37

Product M67:

Unitary cost= 56 + 3.5 + (14,200/2,000)

Unitary cost= $66.6

7 0

3 years ago

Pearsall Company's defined benefit pension plan had a PBO of $268,000 on January 1, 2021. During 2021, pension benefits paid wer

Temka [501]

The amount of the PBO at December 31, 2021, was $333800

Explanation:

The amount of PBO at december 31st is calculated as follows:

PBO on jan 1, 2021 = $268000

add: Service cost = $86000

add: interest = $26800

less: pension benefits that have been paid = $47000

now, we have to solve the above calculation

we get, PBO at dev 31 = $333800

Note: interest is calculated by multiplying the PBO amount on Jan 1,2021 with the rate of interest given.

Thus, $268000 multiply 10% = $26800

3 0

3 years ago

The attitude adopted by Calvin Coolidge that government should play a small role in business affairs is known as what?

nydimaria [60]

Answer:

3) laissez-faire

Explanation:

Laissez-faire is a French expression that means to let us do, or applied to economics, let the economy self regulate itself. It was not a doctrine developed by Adam Smith, but rather by French economists who supported the idea of no government intervention in the economy.

President Coolidge believed that the government should not interfere with businesses and that businesses themselves were able to create prosperity for the nation.

3 0

3 years ago