Answer:
$10,000 credited
Explanation:
DATA
Machine cost = 510,000
Salvage value = $60,000
Useful life = 6 years
Depreciation = $60,000/6years
Depreciation = $10,000
It means that we have overstated depreciation expense for the year with the amount of $10,000.
Retained earnings will be credited by $10,000 As the depreciation expense was overstated mistakenly by $10,000
Answer:
WACC for A: 9.05%
WACC for B: 9.50%
WACC for C: 12.20%
WACC for D: 12.65%
Explanation:
WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)
Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%
Thus WACC for a division will be equal: 3% + 50% x ( 4% + beta of each Division x 9%).
Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.
Answer:
- 3.21%
Explanation:
In this question, we use the PV formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
PMT = 1,000 × 5% = 50
NPER = 34 years - 1 year = 33 year
Rate of interest = 9%
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value would be $581.42
Now the return would be
= Sale price + interest - purchase price
= $581.42 + $50 - $652.39
= -$20.97
And, the total return would be
= Return ÷ purchase price
= -$20.97 ÷ $652.39
= - 3.21%
Answer:
Alternation ranking method.
Explanation:
Tony, a production manager at Brighton Biometrics, needs to measure the performance of 10 subordinates. He writes their names on a paper and circles Paula's name as the best-performing employee of the group. He then circles Erma's name as the worst employee of the group. He rates the remaining employees as second best, second worst, and so on. In the context of methods of performance measurement, Tony is using the alternation ranking method.
This method basically ranks employees from the very best to the worst based on a particular trait. Choosing the highest down to the lowest until every one of them are ranked.
Answer:
the present value of the bond is $16.67
Explanation:
given data
time NPER = 12 year = 12 × 2 = 24 semi annual
bond value FV = $1000
interest PMT = $50
rate of interest = 6% = 
= 0.03 = 3 % semi annual
solution
we will apply here formula for current value in excel as given below
-PV(Rate;NPER;PMT;FV;type) .............1
put here value as
rate = 3% and NPER = 24 , and FV = 1000 and PMT = $50
solve it we get
the present value of the bond is $16.67
