Answer:
d) $677,532.
Explanation:
1.
Written down value of the equipment after 4 years = Cost x ( 100% - 1st year MACRS - Second-year MACRS - Third-year MACRS - Fourth-year MACRS ) = $3,500,000 x ( 100% - 20% - 32% - 19.20% - 11.52% ) = $604,800
2.
Now calculate the gain on the sale of equipment
Gain on the sale of equipment = Sale Price - Written down Value after 4 years = $715,000 - $604,800 = $110,200
3.
Tax owed = Gain on the sale x Tax rate = $110,200 x 34% = $37,468
After-tax salvage value = Sales price - Tax = $715,000 - $37,468 = $677,532
Answer:
10.92%
Explanation:
The formula and the computation of the estimated cost of equity capital is shown below:
Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)
We assume the cost of equity be X
$34 = $3.10 ÷ (cost of equity - 1.8%)
$34 X - $34 × 1.8X = $3.10
After solving this,
The cost of equity would be 10.92%
Based on the fact that the divisions of this national grocery chain are set up in such a way that they can serve different locations, this is a<u> geographic structure.</u>
<h3>What is a geographic structure?</h3>
This is a departmentalization style where a company creates divisions in various areas to service their customers located in those places.
This is what this national grocery chain is doing by setting up divisions in various areas to access their customers around the country.
Find out more on the departmentalization at brainly.com/question/15052404.
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Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 85000
PMT monthly payment?
R interest rate 0.05
K compounded monthly 12
N time 10 years
Solve the formula for PMT
PMT=Pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
PMT=85,000÷((1−(1+0.05÷12)^(
−12×10))÷(0.05÷12))
=901.55 round to the nearest tenth to get 900
Hope it helps!
