Answer:
1). EBIT = Sales - Expenses - Depreciation
= $490,000 -($49,000 - $24,500 - $73,500 - $98,000 - $73,500 - $49,000) - $14,700
= $490,000 - $367,500 - $14,700
= $107,800
2. Net Income = [EBIT - Interest] x [1 - t]
= ($107,800 - $24,500) *(1 - 32%)
= $83,300 * 0.68
= $56,644
Answer:
Sales quantity factor = - $600,000
Unit price factor = $760,000
Explanation:
sales quantity factor is the effect of change in number of units sold with respect to the budgeted price or planned price.
Unit price factor is the change in price per unit with respect to the actual number of units sold.
Unit price factor $(220-200)×38,000 = $760,000
Sales quantity factor (38,000 - 41,000) × $200 = -$600,000
Kindly see attached picture
Answer:
A) 10.15%
Explanation:
Cost of equity (Re) = 14.06% or 0.1406
cost of preferred stock (Rp) = 7/65 = 0.10769
cost of bonds (Rb) = 7.5% or 0.075
outstanding shares = 2.5 million shares x $42 = $105 million
bonds outstanding = $1,000 x 80,000 bonds = $80 million
preferred stock = $65 x 750,000 = $48.75 million
corporate tax rate = 38% or 0.38
total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75
WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}
WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}
WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%
Answer:
Realized gain of Shontelle = $332000
Explanation:
given data
adjusted basis = $760,000
mortgage = $192,000
receives cash = $120,000
fair market value = $780,000
to find out
What is Shontelle realized gain or loss
solution
we find here first Realized gain that is express as
Realized gain = Amount realized - Adjusted basis ..................1
so here Amount realized = (receives cash + fair market value + mortgage)
Amount realized = (120000 + 780000 + 192000)
Amount realized = 1092000
so from equation 1
Realized gain = Amount realized - Adjusted basis
Realized gain = 1092000 - 760000
Realized gain = $332000
so we can say that
Realized gain of Shontelle = $332000
Actually the role of complement products is to enhance the
satisfaction that is given with the other product. For example, the complement
of a loaf of bread would be peanut butter or a strawberry jam. The amount of
satisfaction is enhanced when eating bread with peanut butter. Therefore the
answer is:
<span>D. complements add value to a product when they are consumed
in tandem with it</span>
