Answer:
WACC = 11.6%
Explanation:
<em>The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund. </em>
To calculate the weighted average cost of capital, follow the steps below:
<em>Step 1: Calculate cost of individual source of finance </em>
Cost of Equity= 13.5%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 7%× (1-0.4)= 4.2%
<em>Step 2 : calculate the proportion or weight of the individual source of finance . (This already given) </em>
Equity = 80%
Debt= 20%
<em>Step 3:Work out weighted average cost of capital (WACC) </em>
WACC = ( 13.5%× 80%) + ( 4.2%× 20%) = 11.64%
WACC = 11.6%
Answer:
e. All of these choices are correct.
Explanation:
Note:
Statement a. about production budget is correct as the production budget only estimates number of units to be produced, in quantity and not in dollars and therefore is not converted into dollars.
Statement b. about sales budget is also correct as it shows the quantity in units and also in value.
Statement c. about overhead budget is also correct as the budget segregates variable and fixed overheads properly.
Statement d. about labor budget is correct, as in this budget an average rate is used for calculating the expenses.
Therefore all of the above is correct.
Answer:
primary source of law, oral, and repetitive
Explanation:
In legal terms, custom and usage is a doctrine widely used in commercial law, since they are a long established practice which many courts consider unwritten laws. Laws are formal and always written, but custom and usage is not formal nor written.
Usage refers to the general repetition of a certain act, while custom refers to the rules that result from such repetitions and usage.
Based on the information given, it can be deduced that the annual percentage rate (APR) is 24%.
The annual percentage rate simply means the yearly interest that's generated by a sum that's charged to a borrower. In this case, the APR is 24% after 6 months.
Also, the credit cards that have an annual fee will be credit card 2 and 3. It can also be deduced that the grace period is the same for the three credit cards while credit 3 has a membership.
If one pays the credit card bill on time and the balance each month, the best credit card is credit card 1. Lastly, when one has a balance from time to time credit card 1 is still the best.
Learn more about APR on:
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<span>Net gain of $0.40 per headlight.
Let's calculate how much it will cost Peluso to make each headlight.
First, let's add the direct labor and materials costs
$3 + $4 = $7
Now let's add the manufacturing overhead that would actually be affected by making head lights. Since 40% is unaffected, we need to multiply the overhead by 100% - 40% = 60% before attributing that cost to the headlights. So
$6 * 0.60 = $3.60
And let's add that to the current cost of making the headlight
$7 + $3.60 = $10.60
And finally, let's subtract that from the cost of the headlight if outsourced.
$11 - $10.60 = $0.40
So the Peluso company will save $0.40 per headlight that they manufacture themselves.</span>
