Based in the historical cost principle, the total cost of
the land would be the summation of all cost, either direct or indirect.
Therefore it would be:
Cost of Land = $90,000 cash + $5,000 commission + $7,000
demolishing
Cost of Land = $102,000
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Answer:
The industrial revolution affected the whole global economy, social relations, and culture.
The industrial revolution changed how goods were manufactured, and it all started with the European accumulation of capital and the invention of the steam engine.
The two major sources of energy were coal and oil that were used to power steam engines that moved machinery using water steam. That led to work specialization and urbanization (people moving into large urban areas).
The industrial revolution first started in northwestern Europe, but it then spread to the US, Russia and Japan. The global economy developed new patterns of global trade and production between nations that produced resources and those that processed them and produced goods.
Exporting economies grew around the world because of the need for exporting both raw materials and food supplies from resource producing nations, and the need for exporting finished goods form industrialized nations.
Answer:
7.31%
Explanation:
The question is pointing at the bond's yield to maturity.
The yield to maturity can be computed using the rate formula in excel as provided below:
=rate(nper,pmt,-pv,fv)
nper is the number of times the bond would pay annual coupons which is 31
pmt is the annual coupon payment i.e $1000*8.0%=$80.00
pv is the current price of the bond which is $1,084
fv is the face value of the bond which is $1,000
=rate(31,80,-1084,1000)=7.31%
The yield to maturity is 7.31%
That is the annual rate of return for an investor that holds the bond till maturity.
First of all a meeting at which local members of a political party register their preference among candidates running for office or select delegates to attend a convention. Depending on the party, the caucuses could last from 2 to 3 hours. This caucuses <span>generally begin in either late-January or early-February, and ending about mid-June before the general election in November. </span>
Answer and Explanation:
The computation is shown below:
Debt = D ÷ (E + D)
= 0.8 ÷ (1 + 0.8)
= 0.4444
Now
Weight of equity = 1 - Debt
= 1 - 0.4444
= 0.5556
As per Dividend discount model
Price = Dividend in 1 year ÷ (cost of equity - growth rate)
40 = $2 ÷ (Cost of equity - 0.06)
Cost of equity = 11%
Cost of debt
K = N
Let us assume the par value be $1,000
Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N
k=1
K =25
$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25
k=1
YTM = 9
After tax cost of debt = cost of debt × (1 - tax rate)
= 9 × (1 - 0.21)
= 7.11
WACC = after tax cost of debt × W(D) + cost of equity ×W(E)
= 7.11 × 0.4444 + 11 × 0.5556
= 9.27%
As we can see that the WACC is lower than the return so it should be undertake the expansion
