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3 years ago

Cullumber Corporation has these long-term investments:

Business

1 answer:

professor190 [17]3 years ago

7 0

Answer:

Explanation:

The preparation of the investments section of the balance sheet is presented below:

Cullumber Corporation

Investments Section

Debt investment at fair value $163,100

Common stock of Vejas Co at fair value $110,090

Common stock of Penn Inc. at fair value $212,890

Total investments $486,080

The amount which is recorded in the investment section should be fair value, not the cost

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Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.

dalvyx [7]

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0

3 years ago

Twenty years ago, a family purchased a vacant lot for $26,500. they made no improvements during the time they owned the property

KonstantinChe [14]

To find the gross profit margin found by:
(revenue - cost of goods sold)/revenue

Revenue = $62,275
Cost of goods sold (purchase price) = $26,500

= (62,275 - 26,500)/62,275
= 35,775/62,275
= 0.57 x 100
Percentage of gross profit = 57%

3 0

3 years ago

Read 2 more answers

The Fed buys $100 million of bonds from the public and also lowers the reserve requirement r. What will happen to the money su

Alenkasestr [34]

Answer:

The correct answer is option A.

Explanation:

When the government buys from the public it will pay them back. So the purchase of $100 million of bonds by the government means $100 million was paid to the public.

Also, if the reserve requirement is lowered, it means the commercial banks can increase lending.

Both these actions combined will lead to an increase in the money supply.

3 0

2 years ago

Fill in the missing amounts.

aleksandrvk [35]

Solution

Yoste Company Noone Company

Sales revenue($100,000 + $5,000) $90,000 $105,000

Sales returns and allowances ($6,000) ($5,000)

Net sales $84,000 $100,000

Cost of goods sold($100,000 - $40,000) ($58,000) ($60,000)

Gross profit($84,000 - $58,000) $26,000 $40,000

Operating expenses($40,000 - $17,000) ($14,380) ($23,000)

Net income($26,000 - $14,380) $11,620 $17,000

Net Income divide by Net Sales = Profit Margin Ratio
Gross Profit divide by Net Sales = Gross Profit Rate

Yoste Company :

Profit Margin Ratio = $11,620 divide by $84,000 = 13.83%

Gross Profit Rate = $26,000 divide by $84,000 = 30.95%

Noone Company:

Profit Margin Ratio = $17,000 divide by $100,000 = 17%

Gross Profit Rate = $40,000 divide by $100,000 = 40%

6 0

2 years ago

Kiano, a telecommunications equipment manufacturer, manufactures PDAs (P), wireless handsets (H), and blackberrys (B). They have

a_sh-v [17]

Answer:

Explanation:

Please check the attached file below to see answer to the given question

6 0

3 years ago