Answer:
the company's WACC is 16.88%
Explanation:
<u>Cost of Common Stock is Calculated as follows :</u>
The available data allows us to use the (Capital Asset Pricing Model ) CAPM to calculate the cost of equity.
Cost of Common Stock = Risk free rate + Company`s Beta × Risk Premium
= 5.9 % + 1.12× 10 %
= 17.10%
<u>Cost of Bonds is Calculated as follows :</u>
Cost of Debt = Interest × (1- tax rate)
= 7.90% × ( 1- 0.30)
= 5.53%
<em>Capital Source Market Value Weight Cost Total</em>
Common Stock $35,190,000 98.05% 17.10% 16.77%
Bonds $699,840 1.95% 5.53% 0.11%
Total $35,889,840 100.00% 16.88%
Annually renewable term policies provide a level death benefit for a premium that 2. Increases annually.
<span>A: Probably the most important indicator of financial health is the net cash flow from operating activities</span>
Answer:
Explanation:
Calculation for what The total of the product costs listed above for September is:
Direct materials $113,000
Add Utilities, factory $5,000
Add Indirect labor $25,000
Add Depreciation of production equipment $20,000
Add Direct labor $129,000
Total product costs $292,000
Therefore The total of the product costs listed above for September is: $292,000
Answer:
b. $765000
Explanation:
Depreciation is a non-cash item and as such will not be considered in the computation of the amount to be disbursed in the month.
Given that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month for direct materials, it means the company will pay 70% of the material purchase in August and 30% of July's purchase in August.
Hence, The budgeted cash disbursements for August are
= 70% * $530,000 + 30% * $370,000 + $160000 + $73,000 + $50,000
= $765,000