Answer:
Explanation:
the present value of the future cash flows is the the value of the bond we calculate the present value as follows
Cash flow 4% = 40000 per year for 4 year p.v using annuity
Cash flow = 1000000 at year four present value using compound formula
Present value at yield rate 7.7%
Cash flow Discount Factor Present Value
1000000 0.743253883 743253.8831
40000 3.334365155 133374.6062
876628.4893
Compound = 1000000/(1+7.7%)^4
Annuity = 40000* (1-(1+7.7%)^-4) / 7.7%
Answer: how a job’s pay rate in one company compares to the job’s pay rate in other companies
Explanation: External equity refers to the situation when a company's pay rate differs from the market's pay rate to the employees of the organisation. It is also termed as matching strategy.
It is considered as a major factor in employing and retaining sufficient employees in the organisation. Therefore, lesser the external equity the better it is.
From the above explanation we can conclude that the correct option is A.
Answer:
$135 Unfavorable
Explanation:
The computation of total variance is shown below:-
For computing the total variance first we need to find out the actual price which is below:-
Actual price = Total cost ÷ Actual quantity
= $18,135 ÷ 3,100
= $5.85 pound
Now,
Total variance = Standard quantity × Standard price - Actual quantity × Actual price
= (($2,000 × 1.5) × $6) - 3,100 × $5.85
= 3,000 × $6 - 3,100 × $5.85
= $18,000 - $18135
= $135 Unfavorable.
Answer:
Printer set up error
Explanation:
The best internal control to detect this error, is to do a quick check on the printer set.
Answer:
cost of equity is 11.60 %
Explanation:
Given data
cost of capital = 10.9 percent
tax rate = 35 percent
earnings = $21,800
bonds outstanding = $25,000
rate = 6 %
to find out
cost of equity
solution
we will find first value of unlevered
value of unlevered = earning ( 1 - tax rate ) / cost of capital
value of unlevered = 21800 ( 1 - 0.35 ) / 0.109 = $130000
so
value of unlevered will be for firm = 130000 × bond outstanding × tax rate
value of unlevered will be for firm = 130000 × 25000 × 35%
value of unlevered will be for firm = $138750
so value of firm will be = bond outstanding + equity
so equity will be = 138750 - 25000
equity = $113750
so now
cost of equity will be = cost of capital + ( cost of capital - rate) (bonds / equity ) ( 1 - tax rate )
cost of equity will be = 10.9%+ ( 10.9 % - 6%) (25000 / 113750 ) ( 1-0.35)
so cost of equity = 11.60 %
