Answer:
We expect that the Pfizer has revealed $100 Million as benefit before charge utilizing LIFO strategy for bookkeeping.
After difference in stock valuation from LIFO to FIFO benefit before expense would be $115 Million. Increment in stock will diminish cost of merchandise sold and consequently benefit will increment to that surviving.
We have expected before announced benefit $100 Million
Include: Reduction in cost of merchandise sold $15 Million
Modified benefit $115 Million
Core advantage of the FIFO over LIFO is that the stock get esteemed shutting to current rate. In LIFO edges are get lower because of utilization of old costs. Under LIFO stock detailed at lower esteem coming about lower revealing of benefit. This defects in stock valuation get amended in FIFO technique for valuation.
Under FIFO stock record is lower when contrasted with LIFO.
The full form is collateralized debt obligation
Answer:
10.86 percent
Explanation:
Calculation to determine the weighted average cost of capital
Weighted average cost of capital = (1/1.6) (0.145) + (0.6/1.6) (0.048)
Weighted average cost of capital = (0.625) (0.145) + (0.375) (0.048)
Weighted average cost of capital = 10.86 percent
Therefore Weighted average cost of capital is 10.86 percent
<span>Given that a
firm has return on assets (roa) of 15 percent, and debt-equity ratio of
60 percent.
Then, equity multiplier = 1 + Debt-equity ratio = 1 + 60/100 = 1 + 0.6 = 1.6
Return on equity (roe) is given by return on asset multiplied by the equity multiplier.
Therefore, the firm's return on equity is 1.6 x 0.15 = 0.24 = 24%.
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