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Dennis_Churaev [7]
3 years ago
10

"You plan to buy a piece of machinery worth $50,000 then you plan to sell it at the end of its 15-year life cycle for $5,000. Wh

at is the SL depreciation of this? What is the book value at year 5?"
Business
1 answer:
Aleks04 [339]3 years ago
8 0

Answer:

$3,000 and $35,000

Explanation:

The computations are shown below:

The depreciation expense would be

=(Original cost - residual value) ÷ (useful life)

= ($50,000 - $5,000) ÷ (15 years)

= ($45,000) ÷ (15 years)  

= $3,000

In this method, the depreciation is same for all the remaining useful life

The book value would be

= (Original cost of equipment) - (depreciation × number of years)

= ($50,000) - ($3,000 × 5 years)

= $50,000 - $15,000

= $35,000

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Alpha Products maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budget for
ad-work [718]

Answer:

its weighted cost of capital for the coming year is 9.64%

Explanation:

WACC is the minimum return expected from a project. It shows the risk of the company.

<u>Calculation of WACC.</u>

Capital Source              Weight            Cost               Total

Debt                                  40%            6.60%             2.64%

Common Equity               60%             11.67%            7.00%

Total                                100%                                    9.64%

Cost of Debt = Market Interest Rate × ( 1 - tax rate)

                     = 11%×(1-0.40)

                     = 6.60%

Cost of Equity = (Next year`s dividend/Current Market Price of a share)+Expected growth rate

                       = ($1.40/$30)+0.07

                       = 11.67%

8 0
3 years ago
Bonds owned by investors whose names and addresses are recorded by the issuing company, and for which interest payments are made
Natali5045456 [20]

Answer: Registered Bonds

Explanation:

A registered bond is one that has the owner's name and contact information recorded by the issuer so as to ensure that interest payments depending on the bond terms  are rightly given out and also  to track claims to coupons.The two ways bonds can be registered and transferred

1. Physically by printing owners details at the back of the certificate and BY signing or endorsing a certificate during transfer of bonds,

2. Electronically  bY recording on a system database for ownership claim and for transfer of bonds.

The opposite of a Registered bond is a Bearer bond, Here, the owner"s details and information are not recorded.

4 0
3 years ago
Ralph agrees to lease an apartment from Susan for one day to see Thomas, the president of the United States, deliver a speech in
Reptile [31]

Answer:

A, discharged

Explanation:

Since the speech to be seen is cancelled well ahead of the due date, then the contract between Ralph and Susan is discharged. There is no more speech to listen to and as such Susan can have her apartment back.

Cheers.

5 0
3 years ago
The amount of the average investment for a proposed investment of $191,000 in a fixed asset with a useful life of 4 years, strai
sineoko [7]

$30300
Annual depreciation = (purchase price - salvage value) / useful life
Straight line depreciation = Annual depreciation / (purchase price -salvage value)
The steps in calculating a straight line depreciation are:
Find out how much the asset costs.
To determine the entire depreciable amount, deduct the asset's estimated salvage value from the asset's purchase price.
Find out how long the item will be useful.
To calculate the annual depreciation amount, multiply the total from steps (2) and (3) by the figure determined in steps (3).
i.e, = $191000-$30300 = $160700
an asset with a useful life of 4 =$160700/4 =$40 175
so the straight-line depreciation rate is at 4.7%
In 4 years Straightline depreciation will be $30300
To learn more about Straight line depreciation please refer to-
brainly.com/question/11974283
#SPJ4

6 0
2 years ago
____ is (are) the earnings of a corporation that are distributed to the stockholders. interest dividends retained earnings disco
Marrrta [24]
Dividends is <span>the earnings of a corporation that are distributed to the stockholders. 
To put it simply, dividend is a part of the profit that will be given to everyone that held company's stock which amount will be depended on how much stocks that the owner held.</span>
7 0
3 years ago
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