Answer: ARR = Average profit/Initial outlay x 100
ARR = $19,000/$250,000 x 100
ARR = 7.60%
The correct answer is C
Depreciation = Cost - Residual value/Estimated useful life
= $250,000 - $20,000/5 years
= $46,000 per annum
Average profit = Total profit/No of years
= $325,000/5
= $65,000
$
Average profit 65,000
Less: Depreciation 46,000
Average profit after depreciation 19,000
Explanation: In determining the accounting rate of return of the investment, there is need to calculate depreciation using straight line method. The amount of depreciation would be deducted from the average profit so as to obtain the average profit after depreciation. The average profit would be divided by the initial outlay in order to obtain the accounting rate of return.
Answer:
$7.38
Explanation:
The average cost method recalculates a new cost per unit with each and every purchase made. This new costs would then be used to calculate the costs of goods sold and inventory value.
Average cost per unit = Total Costs ÷ Units available for sale
= (200 x $7 + 800 x $7 + 600 x $8) ÷ 1,600
= $7.375 or $7.38
The average cost per unit for May is $7.38
Answer:
Explanation:
Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;
N = 5*2 = 10
PV = -(95% *10,000,000) = -9,500,000
Coupon PMT = (6%/2)*10,000,000 = 300,000
FV = 10,000,000
then compute semiannual rate; CPT I/Y = 3.604%
convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)
After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;
Aftertax cost of debt = pretax cost of debt (1-tax)
AT cost of debt = 7.21% (1-0.40)
AT cost of debt = 4.33%
Answer: Management
Explanation:
Management ensures that organizational goals are met. The management plans, leads, control and organizes in order to ensure goals are achieved.
The function of accounting is to give financial information whihc are required by the business and its stakeholders.
The function of marketing is to ensure that products reach the consumers. It ensures delivery of products.
The human resource develops the workers. They train, revruit, discuss wages and salaries etc.
Based on the above, the answer is management.
