Answer:
the weighted average cost of capital is 10.29%
Explanation:
The computation of the weighted average cost of capital is shown below;
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= 0.55 × 8.3% × (1 - 0.33) + (0.04 × 6.5%) + (0.41 × 17%)
= 3.058% + 0.26% + 6.97%
= 10.29%
Hence, the weighted average cost of capital is 10.29%
We simply applied the above formula
Answer:
extending tax incentives to Boeing for in-state manufacture of the 777x jetliner
Under the double declining balance method, depreciation is twice or 200% of the straight line
depreciation rate. Its
computation is as follows:
Straight-Line Depreciation Percent = 100% /10 years = 10% /
year.
Depreciation Rate = 2
x 10%
<span> = 20% /year.</span>
Depreciation for a
Period = 20% x Book Value at Beginning of the Period of January 1
Depreciation for
Period 1 (first year) = 20% x $5,400 = $1080
Depreciation for
Period 2 (second year) = 20% x ($5,400- $1080)
<span>
= 20%($4320)</span>
<span>
= $864</span>
Answer:
a) will report lower earnings during rising prices of inputs and pay lower taxes
The reason for this is that when input prices are rising, the inventory bought last is the most expensive and the inventory bought first is the least expensive. So when using LIFO during rising prices of inputs the company will report a higher cost of goods sold as the inputs bought later cost more. This will lower their earnings and taxes.
Explanation:
<span>There was the Sherman Act, the first of the anti-trust laws, which disallowed monopolies, and price fixing. to ensure the consumer a fair price by preventing one company from controlling an entire market, thereby insuring a particular product would need to be priced competitively.
There was also the Interstate Commerce Act which prohibited the railroads from both price gouging and price discrimination, ie. charging more for smaller loads and shorter distances, which greatly affected small business like farmers, who couldn't afford to pay more for less, and big businesses were paying less for more. Sound familiar? This Act forced railroads to have one fair rate applying to everyone, and it must be posted for all to see.</span>
