Answer:
(D) $48 per machine hour
Explanation:
The predetermined overhead rate is given by total estimated overhead divided by the total estimated machine hours
Total estimated overhead = $7,584,000
Total estimated machine hours = 158,000 hours
Predetermined rate = $7,584,000 ÷ 158,000 hours = $48 per machine hour
The seven steps to achieving a sound financial reputation include:
1)
Analysis of cash flow –
Positive cash flow would mean having funds available for savings.
2)
Making a plan for retirement
goals and other special goals.
3)
Increase retirement savings
– This can be done by maximizing contributions in your retirement accounts or
catch-up with missed contributions.
4)
Reduce income tax. Consult
a tax professional to help you with your tax strategy.
5)
Keep pace with the current
inflation rate.
6)
Manage potential risks and
liabilities – Being covered with insurance can give you protection in times of
unexpected risks.
7)
Consult a financial advisor
to provide you with informed decisions.
Answer:
b. 5.27%
Explanation:
First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;
Face value; FV = 1000
Maturity of bond; N = 15*2 = 30
Semiannual coupon payment = (8.75%/2)*1000 = 43.75
Semi annual interest rate; I/Y = 3.25%
then compute Price; CPT PV= 1,213.547
Next, with the PV , compute the yield to call (I/Y) given 6 years;
Maturity of bond; N = 6*2 = 12
Semiannual coupon payment = (8.75%/2)*1000 = 43.75
Price; PV= -1,213.547
Face value; FV = 1,050
then compute Semiannual interest rate; CPT I/Y = 2.636%
Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%
Answer:
Castle State Bank's equity multiplier is 2.2
Explanation:
Total Assets = $2,200
Total Liabilities and Equity = $2200
Net Loans = $1,200
Total Equity = $2,200 - $1,200 = $1,000
Equity multiplier = Total Assets / Total Shareholders Equity
Equity multiplier = 2,200 / $1,000
Equity multiplier = 2.2
Total Assets is equal to Total equity and Liabilities. Total equity and Liabilities includes the balance of Both equity and liabilities. Total equity is calculated by subtracting Total Loans from Total equity and Liabilities.
Answer:
Option A is the better choice of the two given any positive rate of return.
Explanation:
