The list price for a window is $220. Net price is $160. What is the trade discount rate?

Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in c

exis [7]

Answer:

The weighted cost of capital for the project which is also the project discount rate is 10.12%

Explanation:

WACC=Ke*E/V+Kd*D/V*(1-t)+Kp*P/V

Ke is the cost of equity of 13.2%

Kd is the cost of debt of 8.7%

Kp is the cost of preferred stock of 9.9%

E is the market value of equity raised of $880,000

D is the market value of debt issued of $750,000

P is the amount of preferred stock sold to investors of $78,000

V is the sum of the market values above=$880,000+$750,000+$78,000=$1708000

WACC=(13.2%*880,000/1708,000)+(8.7%*750,000/1708,000*(1-0.25))+(9.9%*78,000/1708000)=10.12%

8 0

3 years ago

Blue Spruce, Inc. is considering purchasing equipment costing $72000 with a 6-year useful life. The equipment will provide annua

Stella [2.4K]

The approximate internal rate of return for this investment is $0.054.

<h3><u>What is rate of return?</u></h3>

The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
You determine the percentage change from the start of the period to the end when computing the rate of return.
Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR).

Any asset can be used with the RoR as long as it is purchased once and generates cash flow at some point in the future. The attractiveness of various investments can be determined, in part, by comparing their historical rates of return to those of comparable assets.

We have, (Net Annual cash inflow x PV of an Annuity of 1 at 10%) - Initial Investment = Net present value (find closest to zero))

($17,514 x 4.111) = $72000.054 - $72,000 = $0.054 (closest to zero).

Know more about rate of return with the help of the given link:

brainly.com/question/24232401

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6 0

1 year ago

Anyone have tikt ok put u r at in co mments or anw ser and i will follo w u

kondaur [170]

Answer:

sorry I don't have one! T~T

Explanation:

8 0

2 years ago

Which is the correct sequence for recording transactions and preparing financial statements?

zheka24 [161]

Answer:

The answer is B.

Explanation:

The first is the journal. A journal entry may be a summary of the debits and credits of the transaction entry to the journal.

Followed by a ledger which may be a book containing accounts during which the classified and summarized information from the journals is posted as debits and credits.

Trial balance which is that the listing of all accounts (asset, liability, equity, revenue, expense) with the ending account balance or or its a report that lists the balances of all book accounts of a corporation at a specific point in time.

And lastly the financial statements. they're written records of a business's financial situation

8 0

3 years ago

Assume that activity G has the following times: Early start time 7 days Early finish time 13 days Late start time 15 days Late f

Aloiza [94]

Answer:

The correct answer is Activity G has s slack time of 8 days.

5 0

3 years ago