Answer: d. $579.44
Explanation:
Dividends from Essentia Inc.
= 66*$1.79
= $118.14
Dividends from SFT Legal
= 95*$2.62
=$248.90
Dividends from Grath Oil
=180*$1.18
=$212.4
Total Dividends
=$118.14 + $248.90 + $212.4
=$579.44
Darryl's total Dividends each year amounts to $579.44
Answer:
Which of the following statements is CORRECT?
a. Operating income is derived from the firm's regular core business. Operating income is calculated as Revenues less Operating costs. Operating costs do not include interest or taxes.
Explanation:
Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).
Answer:
$138.63
Explanation:
I used an excel spreadsheet and the NPV function to determine the present value of this annuity. The present value of this annuity is $138.63
Answer:
d. 8.125%.
Explanation:
The computation of the after tax cost of debt is shown below:
Given that
NPER = 13 × 2 = 26
PMT = $1,000 × 8.5% ÷ 2 = $42.50
Assume future value would be $1,000
Present value is $746.16
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the rate is
= 6.25% × 2
= 12.50%
Now the after tax cost of debt is
= 12.50% × (1 - 0.35)
= 8.125%
Hence, the correct option is d. 8.125%
Answer:
Purchase order activity rate= $600 per order
Explanation:
Giving the following information:
Cost Pool Overhead Costs Cost Driver Levels
Purchase orders $ 30,000 50 orders
<u>To calculate the activity rate for Purchase orders, we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Purchase order activity rate= 30,000 / 50
Purchase order activity rate= $600 per order
