Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Answer:
Journal entry to record depletion expense
Depreciation expense $280,000 (debit)
Accumulated depreciation $280,000 (credit)
Explanation:
The coal mine is an economic resource controlled (ownership of risks and benefits) by Last year, Mountain Top, Inc as a result of past event (purchase transaction) from which economic benefits are expected to flow into the business (cash from sale of minerals).Therefore the coal mine is an asset!
The asset is being depleted as it is being used. This is called depreciation.
Depreciation expense in this case is calculated as :
Depreciable Account × Current harvest as a percentage of total estimated tons available
(900000-100000)× 70000/200000 = $280,000
Answer:
9.315%
Explanation:
The computation of WACC is shown below:-
But before that we need to do the following calculations
PV -$1,000
PMT 80
N 20
FV $1,000
Compute IY 8%
After tax cost of Debt = Before tax cost of debt × (1 - tax rate)
= 8% × (1 - 25%)
= 6%
According to the CAPM,
Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)
= 4.5% + (1.2 × 5.5%)
= 11.10%
Weight of Equity = 100% - 35%
= 65%
WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)
= (65% × 11.10) + (35% × 6)
= 9.315%
Answer:
A High School Diploma is a stepping-stone toward future education.
Explanation:
A High School Diploma will definitely be a perfect move and a stepping-stone towards future education, which undoubtedly, will pave the way for the further and higher education of the people. They can proceed ahead easier if they have achieved this first milestone. This will prove as the first step towards their educational journey, which surely need to be taken, at least, anyway.
On November 23rd, an officer of MNO Corporation wishes to sell stock under Rule 144. MNO has 50,000,000 shares outstanding. The previous weeks' trading volumes are:
Week Ending Volume
Nov 21 : 500,000 shares
Nov 14 : 525,000 shares
Nov 7 : 485,000 shares
Oct 31 : 450,000 shares
Oct 24 : 400,000 shares
If the Form 144 is filed today, the maximum sale is:
Answer:
500,000 shares
Explanation:
Given that: according to rule 144, which enables the sale of the greater of 1% of the outstanding shares or the weekly average of the preceding 4 weeks trading volume every 90 days.
Then, we have 1% of 50,000,000 shares = 500,000 shares. The last 4 weeks' trading volumes are:
500,000 shares
525,000 shares
485,000 shares
450,000 shares
1,960,000 shares / 4 weeks = 490,000 share average
Therefore, the greater amount is 1% of outstanding shares, which is 500,000 shares.
