Answer:
d. $750,000; 8.9%
Explanation:
The computation is shown below:
A. Current Total Market Value
Current market value of debt $150,000 The Current market value of equity $600,000 (10,000 shares × $60) Market Value $750,000
B. Weighted Average Cost of Capital (WACC)
WACC = {Equity ÷ (Equity + Debt) × Cost of Equity} + {Debt ÷ ( Equity + Debt ) × Cost of Debt × (1 - 25%)}
= {$600,000 ÷ ($600,000 + $150,000) × 10%} + {$150,000 ÷ ($600,000 + $150,000) × 6% × 0.75}
= ($600,000 ÷ $750,000) × 10% + ($150,000 ÷ $750,000) × 6% × 0.75 = 0.08 + 0.009
= 8.90%
Hence, the correct option is D. $7,50,000 ; 8.90%
Answer:
It depends on a number of things. The quality of the product, the reviews of the product, or maybe just to feel cool.
Answer:
How much may Adrian deduct?
This depends on whether the museum is private or not. If the museum belongs to a public charity or a university, then Adrian can deduct full fair market value = $35,000. Since Adrian's AGI is $80,000, she could donate up to $40,000 (half her AGI).
But if the museum is a private organization, then Adrian can deduct only her basis in the vase = $15,000
How would your answer to Part a change if, instead of displaying the vase, the museum sold the vase to an antique dealer?
Once you donate artwork, unless you strict prohibit the museum from selling it, then they can sell it and you cannot do anything about it. Some donors specific certain terms for their donations, e.g. artwork cannot be sold and it must be exhibited at least a certain amount of time, in certain places, etc. But if Adrian didn't include any clause on her donation, then whatever happens to the vase is up to the museum.
Currently, museums are less likely to accept restricted donations, unless of course the artwork is worth it.
Answer:
Break-even point in units= 7,600
Explanation:
Giving the following information:
Selling price= $44
Unitary variable cost= $25
When 14,600 units are sold, profits equaled $133,000.
<u>First, we need to calculate the total fixed costs:</u>
Fixed costs= Total contribution margin - net income
Fixed costs= 14,600*(44 - 25) - 133,000
Fixed costs= $144,400
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 144,400 / (44 - 25)
Break-even point in units= 7,600
