All categories

3 years ago

How do organizations calculate various costs, and what do these calculations mean to business?

Business

1 answer:

QveST [7]3 years ago

8 0

Answer:

See the explanation section

Explanation:

Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.

Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.

You might be interested in

Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expect

raketka [301]

Answer: $400.56

Explanation:

Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)

Tax shield in year 3 = Interest expense * tax rate

= 140 * 25%

= $35

Horizon value = 35 * ( 1 + 3%) / (12% - 3%)

= $400.56

6 0

3 years ago

The stock price of Bravo Corp. is currently $100. The stock price a year from now will be either $160 or $60 with equal probabil

slavikrds [6]

Answer:

correct option is $38.21

Explanation:

given data

stock price = $100

stock price = either $160 or $60

interest rate = 6%

exercise price = $135

solution

we get here Hedge ratio that is express as

Hedge ratio = (Pay off in case price appreciates - Pay off in case price depreciates) ÷ (Appreciated price - Depreciated price) ..................1

put here value we get

Hedge ratio = ( Max [$135 - $160, $0] - Max[$135 - $60, $0]) ÷ ($160 - $60)

Hedge ratio = $\frac{$0 - $75}{$100}$

Hedge ratio = - 0.75

so here Price of Put option is

Price of Put option = -Hedge ratio × {Appreciated price ÷ (1 + risk free rate) - Present stock price}

Price of Put option = -(-0.75) × $\frac{160}{1+0.06} - 100$

Price of Put option = $38.21

so here correct option is $38.21

7 0

3 years ago

Part 1 Using the refusal skills sequence, complete the case scenario by indicating how you would refuse to be involved in the si

BARSIC [14]

<em>Incomplete question. </em>

<u>Full Question and Explanation:</u>

1. What are they asking me to do and why?

They are asking me to do things both illegal and sexual that I do not believe in doing.

2. Label what they are asking you to do (i.e. illegal, dangerous, etc.).

It is Illegal, sexual, and dangerous

3. Determine the consequences if you get caught or if you participate in this activity.

I could get infected with a disease or even get arrested by law enforcement agents.

4. Communicate my refusal.

I do not do such things and I will not follow others in their wrongful course.

5. Say no.

No matter what you say, I say no!

6. Use "I" statements.

I feel that you do not consider my feelings when you try to force me because I don't want to do these things.

7. Suggest an alternative.

No, lets go and watch a movie at the movie theater.

8. Leave the scene and avoid questionable places.

My mom must be waiting for me by now, I'll have to go home.

6 0

3 years ago

Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month). Emp

Rudik [331]

Answer:

$10,570.80

Explanation:

The computation of the withheld during the year is shown below:

= Social security tax + medicare tax

where,

Social security tax is

= $128,400 × 6.2%

= $7,960.80

And, the medicare tax is

= $180,000 × 1.45%

= $2,610

So, the total withheld during the year is

= $7,960.80 + $2,610

= $10,570.80

We simply added the social security and medicare taxes so that the withheld could come

5 0

4 years ago

Acme Widget, Inc. has 1,000 shareholders who own a total of two million shares of its common stock. The company earned $20 milli

Talja [164]

Acme Widget, Inc. has a book value per share of $100.

Data and Calculations:

Number of shareholders = 1,000

Total number of common stock shares = 2,000,000 shares

Earnings after tax = $20 million

Dividends paid = $8 million

Assets = $250 million

Liabilities = $50 million

Equity = $200 million ($250 million - $50 million)

Book value per share = $100 ($200,000,000/2,000,000)

Thus, Acme Widget's book value per share is $100.

Learn more: brainly.com/question/14504712

7 0

2 years ago