Answer:
cost of capital 16%
Explanation:
SML formula:
r_f = 3%
β = 1.3
r_m = 13%
0.03 + 1.3(0.13-0.03)
firm's required return = .16 = 16%
Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year
1 answer:
Answer:
Profit margin = 9.74%
Explanation:
We know,
Profit Margin = (Net income after tax/Net sales) x 100
Profit margin is a profitability ratio that measures the company's overall performance. It also show how company performs financially.
Given,
Year 2,
Net Sales = $484,000
Net income after tax = $47,150
Therefore,
Profit Margin =
Profit Margin = 9.74%
Hence, company is performing financially well.
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Answer:
10% of the Janitorial Department's $450,000 costs is allocated to the Cutting Department
Explanation:
Given:
Costs Square Feet Number of Employees
Janitorial Department $450,000 100 20
Cafeteria Department $200,000 10,000 10
Cutting Department $1,500,000 2,000 60
Assembly Department $3,000,000 8,000 20
Cafeteria Cutting Assembly Total
Department department department
Square feet 10,000 2,000 8,000 20,000
% of allocation 50% 10% 40%
× 100
× 100
× 100
Hence, % usage by the cutting department is 10%