Answer:
The answer is $1,402,000
Explanation:
Cost of an asset is the total cost of acquiring and asset plus the cost incurred in bringing the asset to a working condition e.g cost of transporting the asset to factory, cost of installation etc.
Cost of the machine is:
Cost of acquisition $4,000,000
Cost of installation. $10,000
Building a clean room. $3,000,000
Total cost is. $7,010,000
No salvage value
Useful life is 5 years
Cost of depreciation using the straight-line method is
(cost of the asset - salvage value) ÷ number of useful life
$7,010,000 ÷ 5
= $1,402,000
Answer:
The correct answer is C) "elastic, and the price elasticity of supply is 1.74"
Explanation:
Formula:
( (Qf - Qi) ÷ ((Qf + Qi) ÷ 2) ) ÷ ( (Pf - Pi) ÷ ((Pf + Pi) ÷ 2) )
Quantity Price
Lets remplace:
Qi = Initial Quantity = 125 boxes
Qf = Final Quantity = 145 boxes
Pi = Initial Price = $2.25
Pf= Final Price = $2.45
Quantity Price
(145 - 125) ÷ ((145 + 125) ÷ 2) ÷ (2.45-2.25) ÷ ((2.45+2.25)÷ 2)
= (20) ÷ (270÷ 2) = (0.2) ÷ (4.7 ÷ 2)
= 20 ÷ 135 = 0.2 ÷ 2.35
= 0.148 = 0.085
Finally: we divide the result of quantity into the result of price
= 0.148 ÷ 0.085
= 1.74
To classify into elastic or inelastic:
When Pes > 1, then supply is price elastic
When Pes < 1, then supply is price inelastic
When Pes = 0, supply is perfectly inelastic
Answer: <em>Elastic, and the price elasticity of supply is 1.74</em>
Answer:
7.85%
Explanation:
Face value of bond =$2000
Price of current bond= face value× 106.5% = $2130
Term= 25 years×2= 50 period
Coupon rate= 7%×1/2= 3.5%
Coupon amount= coupon rate×face value = $2000×3.5/100
=$70 for a period
YTM of bond= [coupon amount+ (maturity value-current price)/Term]/0.6×current price+0.4×maturity value]
YTM of bond= 6.487% per annum
Total market value of bond= 8,400bonds× $2130= $17,892,000
Market value of common stock= 275,000shares × 62.50= $18012500
Weight of common stock= 0.490009385
Weight of preferred stock= 0.023259294
WACC= Wd* Kd + Wc*Kc + Wp*Kp
= 0.486731321× 4.86525% +
0.490009385× 10.9624275+
0.023259294× 4.7368421%
=7.849%
= 7.85%(rounded)
Thus, WACC is 7.85%