Answer:
The variable costing unit product cost was <u>$69.</u>
Explanation:
Variable Product Costing is a situation whereby only the variable costs of production is taking into account to estimating the cost per unit of a product. This implies that none of the fixed cost will be included in the cost of the product.
Based on the explanation above, the variable costing unit product cost to produce a single product by Kray Inc. can be calculated as follows:
Kray Inc.
Calculation of Variable Costing Unit Product Cost
<u>Particulars Amount ($) </u>
Direct materials 40
Direct labor 19
Variable manufacturing overhead 8
Variable selling and administrative expense <u> 2 </u>
Variable cost per unit <u> 69 </u>
Therefore, the variable costing unit product cost was <u>$69.</u>
Answer:
Profit re-investments, purchase of another company, financial troubles
Explanation:
The first reasons could be that the company wants to reinvest its profit after it pays out dividends on preferred stocks or in other words if it wants to finance its future growth. Another reasons could be that the company has decided to withhold some of its earnings for future acquisitions. Third possible reason could be that the company wants to defer the payments on common stock for some time.
Answer: option D
Explanation: Borrower or demander refers to the person who is asking and expecting some other party to give him some commodity with the arrangement that he or she will get that commodity back to the lender.
In the given case, Noberto has more outflows than the inflows hence he must be having shortage of fund. Thus, to cope with that shortage he can only borrow or demand the finds from any other entity.
Hence from the above we can conclude that the correct option is D.
Answer:
3000* (1+ 0.06) (that little 1 at the corner there <)
= $3,180
3,180 - 3000 = $180 first year
180/12 =$15 per month
The formula is
Principal (money borrowed/3000$) times/*/x (1+ rate (0.06) ) to the power of 1
Please correct me if i got it wrong i’m studying this in class too.
Explanation:
Answer:
Cost of equity = 10.6%
Explanation:
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
<em>The model can me modified to determined the cost of equity having flotation cost as follows:</em>
Cost of equity = D(1+r )/P(1-f) + g
d- dividend, p- price of stock , f - flotation cost , - g- growth rate in dividend
D-1.00, p - 20, f- 10%, g- 5%
Applying this to the question;
cost of equity - 1.00/(20×(1-0.1) )+ 0.05
= 10.6%
Cost of equity = 10.6%
