Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
Answer:
$34,500
Explanation:
Calculation to determine total revenues for the year
Using this formula
Total revenues=Increase in Assets+Decreased in liabilities+Dividends+Expenses
Let plug in the formula
Total revenues=($11,000-$19,000)+($9,000-$7,500)+$4,000+$21,000
Total revenues=$8,000+$1,500+$4,000+$21,000
Total revenues=$34,500
Therefore total revenues for the year is $34,500
Answer:
The correct answer is letter "A": position analysis questionnaire.
Explanation:
Position Analysis Questionnaire or PAQ is helpful to link job duties with individuals' characteristics such as mental processes or interpersonal skills. The results of PAQ are implemented in the desired profile of different job positions within the firm and for training references. <em>PAQ is employee-oriented in nature which implies workers' behaviors are the key features to study in different jobs at different levels.</em>
I believe that would be efficency.
Answer:
Total manufacturing cost will be $291500
Explanation:
We have given work in progress inventory on December 31 of current year is $44000
It is given that work in progress inventory is increased by 60% during the year
So in beginning work in progress inventory 
$
We have given cost of goods manufactured = $275000
Cost of goods manufactured = work in progress inventory + total manufacturing costs incurred - Ending work in progress inventory
So 275000 = 27500 + total manufacturing costs incurred - 44000
Total manufacturing costs incurred = 275000 - 27500 +44000 = $291500
