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Vika [28.1K]
3 years ago
11

On june 15, 2018, sanderson construction entered into a long-term construction contract to build a baseball stadium in washingto

n,
d.c., for $410 million. the expected completion date is april 1, 2020, just in time for the 2020 baseball season. costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):
Business
1 answer:
Daniel [21]3 years ago
4 0

Answer:

The answer is $15000000.


Explanation:

Gross profit in 2016 is $60000000, 2017 is $40000000 and 2018 is $50000000.

Calculation of 2016 is = Estimated gross profit x (actual cost to date ÷ total cost)

                                   = $60000000 x ($40000000 ÷ $ 160000000)

                                    = $15000000

The method remains same to calculate the gross of every year.

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Winter's Toyland has a debt-equity ratio of .57. The pretax cost of debt is 8.2 percent and the required return on assets is 14.
True [87]

Answer:

<em>WACC 10.995</em>

Explanation:

We solve using the Weighted average cost of capital assuming a tax rate of 0% as we have to ignore taxes. Hence, we get:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.14700

Equity weight 0.43

Kd 0.082

Debt Weight 0.57

t 0

WACC = 0.147(0.43) + 0.082(1-0)(0.57)

WACC 10.99500%

6 0
3 years ago
Read 2 more answers
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and woul
Margarita [4]

Answer:

"Decrease by 250" is the appropriate response.

Explanation:

The given values are:

Revised fixed cost,

= $150,000

Current selling price,

= $100

Current variable cost,

= $60

Current contribution will be:

=  Current \ selling \ price-Current \ variable \ cost

=  100-60

=  40

Now,

The revised BEP will be:

=  \frac{Revised \ fixed \ cost}{Revised \ contribution}

On substituting the values, we get

=  \frac{150,000}{40}

=  3750 \ units

hence,

=  4000-3750

=  250

Thus the above is the correct answer.

4 0
3 years ago
Nike, Inc.reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): other plant a
vodka [1.7K]

Answer:

Explanation:

The total assets comprises of current assets, fixed assets ,and the intangible assets

The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

The preparation of the classified balance sheet for Nike, Inc on  May 31, 2022 is presented in the spreadsheet. Kindly find the attachment below:

3 0
3 years ago
Consumer services include:___________
mart [117]

Answer:

The most accurate answer is c. educational, retail, wholesale, professional, and financial service jobs.

Explanation:

7 0
4 years ago
Read 2 more answers
Vino Winery is considering the purchase of a state-of-the-art bottling machine. The new machine will cost $20,790 and will have
jolli1 [7]

Answer:

the internal rate of return is 6%

Explanation:

The computation of the internal rate of return is shown below;

Given that

Years         Cash flows

0                -$20,790

1                   $6,000

2                  $6,000

3                 $6,000

4                 $6,000

Now apply the following formula i.e..

= IRR()

After applying the above formula, the internal rate of return is 6%

6 0
3 years ago
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