Answer:
The cost of equity capital is 8.24%
Explanation:
The cost of equity capital of a firm is the required rate of return on a firm's equity. In case of common equity, the required rate of return (r) can be calculated using the CAPM approach. The formula for required rate of return or cost of equity capital under this model is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the risk premium on market
r = 0.025 + 0.77 * 0.0745
r = 0.082365 or 8.2365% rounded off to 8.24%
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Answer:
B ang answer in my opinion
Explanation:
sorry...hope it helps:)
Gross Profit is calculated by deducting the cost of goods sold, sales return and sales discount from the sales. The operating expenses is not considered for gross profit. The same is deducted from the gross profit for finding the net profit.
Gross Profit = Sales - Cost of goods sold - Sales Return - Sales Discount
Gross Profit = $150,000 - $67,000 - $13,000 - $6,000
Gross Profit = $150,000 - $86,000
Gross Profit = $ 64,000
Thus, gross profit is $64,000
Answer:
$234,000
Explanation:
cost of goods manufactured = beginning work in process + direct materials + direct labor + manufacturing overhead cost applied - ending work in process
cost of goods manufactured = $25,000 + $65,000 + $95,000 + $69,000 - $20,000 = $234,000
cost of goods sold = beginning finished inventory + cost of goods manufactured - ending finished inventory + underapplied overhead
cost of goods sold = $54,000 + $234,000 - $58,000 + $2,000 = $232,000