Answer:
$29 per stock
Explanation:
WACC=PBIT*(1-tax)/Market value of firm
10%=$20,000,000*(1-40%)/Market Value of the firm
Market Value of the firm=$20,000,000*60%/10%=$120,000,000
Stock price for all shares=$120,000,000*60%=$72,000,000
Stock price per share=$72,000,000/2,500,000=$29 per share
Answer:
Conversion Cost Equivalent units FIFO 39, 125
Explanation:
Beginning WIP 5,000 30% completed
transferred units 39,500
ending WIP 4,500 25% completed
<u>The equivalent units will be:</u>
the transferred units
- complete portion for the beginning WIP
+ complete portion of the ending WIP
transferred out 39,500
work in previous period
5,000 x 30% = (1,500)
worked but not complete
4,500 x 25% = <u> 1, 125 </u>
Equivalent units FIFO 39, 125
Answer:
True
Explanation:
The correct option is - True
Reason -
When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.
Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is blocked in the inventory and it will be recovered only when the inventory being sold.
The present value of a security that will pay $17,000 in 20 years if securities of equal risk pay 5 annually is $13,320.
A financial calculation known as present value, commonly referred to as discounted value, assesses the value of a future sum of money or stream of payments in today's dollars after accounting for interest and inflation. In other words, it contrasts the purchasing power of one dollar today with that of one dollar in the future.
PV = FV/(1+r) ^n
Where, PV = Present value
FV = Future value
r = R/100
R = interest or discount rate
n = number of periods or years
Now,
PV = 17000/{1+(5/100)} ^5
PV = 17000/1.2762815625
PV = 13,320
Hence, present value is $13,320.
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