Answer:
Explanation:
Base on the scenario been described in the question,Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want any specific sub-part to be answered then please submit that sub-part only or specify the question number in your message.
2
Compute the net present value to make decision for buying the new Backhoes or keeping the old:
We can fine the calculations in the file attached below
Answer:
WACC = 11.45 %
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke) + (Wp × Kp)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt = 11.1%(1-0.4) =6.66%
Ke-Cost of equity = 14.7%
Kp= Cost of preferred stock = 12.2%
Wd-Weight of debt =100/270=0.370
We-Weight of equity = 140/270=0.518
Wp= weight of preferred stock = 30/270=0.111
WACC = (0.518× 14.7%) + (0.370 × 6.7%) + (0.111×12.2) = 11.447%
WACC = 11.45 %
Answer:
GDP is likely to remain same as a result of this conversion.
Explanation:
GDP is the total value of goods & services, produced by an economy, during a given year.
It can be calculated by 2 methods
- By Expenditure method : GDP = Private Final Capital Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
- By Income method : NDP = Compensation of Employees + Operating Surplus (Rent + Profit + Income) + Mixed Income
Given case - Converting a rented apartment into a resident owned condominium , with value of housing services = rent formerly paid :
This brings no change in the GDP, as : The apartment 'rent' previously paid was included in 'operating surplus' of national income, by Income method. And, the equal condominium value is now included in investment addition i.e 'Gross domestic capital formation' , by Income method.
Answer:
b. $433,750
Explanation:
The ending balance in retained earnings can be calculated as;
= Beginning balance + Net income - Cash dividends
Given that;
Beginning balance = $430,000
Net income = $60,000
Cash dividends = $56,250
= $430,000 + $60,000 - $56,250
= $433,750
Therefore, the ending balance in retained earnings is $433,750
The answer is exclusive distribution. This is exclusive when just certain retailers are given the alternative of conveying an item in its store. In this way, it is an understanding between a provider and a retailer giving the retailer elite rights inside a particular land region to convey the provider's item.
