Answer:
Net present value of proposal $168,166
Explanation:
Check attachment
Answer:
The answer is letter C.
Explanation:
The correct statement is If M and W merge, then the merged firm MW should have a WACC that is a simple average of M's and W's WACCs.
Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
Answer:
1. Collected accounts receivable = (a) an operating activity
2. Declared and paid dividends on common stock = (c) a financing activity
3. Sold long-term investments for cash = (b) an investing activity
4. Issued stock for equipment = (d) a noncash investing and financing activity
5. Repaid five year note payable = (c) a financing activity
6. Paid employee wages = (a) an operating activity
7. Converted bonds payable to common stock = (d) a noncash investing and financing activity.
8. Acquired long-term investment with cash = (b) an investing activity
9. Sold buildings and equipment for cash = (b) an investing activity
10. Sold merchandise to customers = (a) an operating activity
Explanation:
The Operating Activities include those activities that occurs within the course of business.
The Investing Activities include any cash movement in capital expenditure items.
The Financing Activities included activities that involve sourcing of funds and changes in ownership activities.