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2 years ago

Which of the following are NOT included in the formal financial analysis of a capital budgeting program?

Business

1 answer:

enot [183]2 years ago

5 0

Answer: Option B

Explanation: Capital budgeting refers to the process in which an analyst tries to evaluate whether a long term investment will be profitable for the organisation or not.

In the capital budgeting process, only the quantitative aspects of a project will be taken into consideration and qualitative aspects such as quality and work space safety are not considered.

Hence from the above we can conclude that the right option is B.

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You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a pri

IceJOKER [234]

Answer:

My percentage profit is 15%

Explanation:

Total investment = $20 × 1000 = $20,000

Rise in value of investment = $23 × 1000 = $23,000

Profit = $23,000 - $20,000 = $3,000

Percentage profit = profit/total investment × 100 = $3,000/$20,000 × 100 = 15%

3 0

3 years ago

Pepper Inc.’s common stock currently sells for $15.00 per share, the company expects to pay $1.925 dividend in the coming year a

dedylja [7]

Answer:

The correct answer is 0.78%.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate the retained earning cost, then

Cost of retained earning = Dividend ÷ Price + Growth

= (1.925 × 70%) ÷ 15 + 6%

= 1.3475 ÷ 15 + 0.06

= 0.1498 or 14.98%

Now, Cost of equity = (Dividend ÷ Price (1 - Flotation cost ) + Growth

= (1.925 × 70% ) ÷ 15 (1 - 0.08) + 0.06

= (1.3475 ÷ 13.8 ) + 0.06

= 0.1576 or 15.76%

So, Exceed amount = 15.76% - 14.98% = 0.78%

6 0

2 years ago

Net present value is ______. used to determine if a project is an acceptable capital investment the difference between the prese

KATRIN_1 [288]

Answer: the difference between the present value of cash inflows and present value of cash outflows

Explanation:

The value of money is always changing and usually for the worst. Inflation means that $1 today is not worth $1 in a year's time. This poses a risk to investors who want to make profit and can't do that if they do not cater for inflation or the loss of value in their profit estimations. This is where Net Present Value comes in.

NET PRESENT VALUE works by subtracting the present value of Cash Outflows ( investment) from the present value of Cash Inflows (Revenue).

To do this, a DISCOUNT RATE is used which is essentially a value that people believe the currency involved will reduce by going forward. This Discount Rate equates the value of money in the future to it's value now.

Once that is ascertained, a proper comparison can be made to see if the investment is worth it.

7 0

3 years ago

a local partnership was in the process of liquidating and reported the following capital account balances: justice, capital (40%

bogdanovich [222]

Based on the capital account balances and the amount in the cash account, the amount that Zobart will receive is $15,467.

<h3>What will Zobart receive?</h3>

The amount that Zobart will receive can be found by the formula:

= (Deficit x percentage in partnership/ 75%) + Capital account balance

Solving for the amount going to Zobart gives:

= (14,000 x 35%/75%) + 22,000

= $15,467

In conclusion, the amount to Zobart is $15,467.

Find out more on capital distributions at brainly.com/question/22693552

#SPJ1

8 0

1 year ago

On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest ann

Andreas93 [3]

Answer:

Wayne, Inc.

1. The stated interest rate for this bond issue is:

= 8%.

2. The market interest rate for this bond issue is:

= 9%.

3. The selling price of the bonds as a percentage of the face value is 97.5% ($3,900,000/$4,000,000 * 100)

4. Journal Entry to record the sale of the bond issue on December 31, 2020:

December 31, 2020:

Debit Cash $3,900,000

Debit Bonds Discounts $100,000

Credit Bonds Payable $4,000,000

To record the bonds proceeds, discounts, and liability.

5. December 31, 2021:

Debit Bonds Interest Expense $351,000

Credit Bonds Amortization $31,000

Credit Cash $320,000

To record the first payment of interest and amortization.

Explanation:

a) Data and Calculations:

Face value of bonds = $4,000,000

Bonds price = $3,900,000

Discount = $100,000

December 31, 2021:

Interest expense = $351,000

Market interest rate = $351,000/$3,900,000 * 100 = 9%

Cash payment = $320,000

Coupon interest rate = $320,000/$4,000,000 * 100 = 8%

7 0

2 years ago