Answer:
8.1%
Explanation:
Firstly, let look at the formula for calculating weighted average cost of capital (WACC):
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E + (PE/A) x r_PE, where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
PE: Market value of company preferred equity;
r_D: cost of debt;
r_E: cost of equity/retained earnings;
r_PE: cost of preferred equity;
t: tax rate
Putting all the numbers together, we have:
WACC = 35% x 6.5% x (1-25%) + 55% x 10.5% + 10% x 6% = 8.1%
Answer:
On the transfer of the building,
Appreciation of building = FMV - Adjusted Basis
= $50,000 - $10,000
= $40,000
WFI has taxable transaction and gain recognition of $40,000.
On the transfer of the land,
Appreciation of land = FMV - Adjusted Basis
= $150,000 - $90,000
= $60,000
WFI has taxable transaction and gain recognition of $60,000.
Answer:
upselling
Explanation:
Since they are adding more to your order they are UPselling the product by adding more.
Answer:
The affecting factors of the given context are defined below in the explanation section.
Explanation:
<u>Factors affecting fixed capital</u>:
- Capital expenditure of alternative investments is longer and therefore is considered fixed capital.
- That capital would be largely funded thru all the lengthy period financing sources, including certain equity, retained earnings, bonds, loan repayments, and so much more.
<u>Factors affecting working capital</u>:
- Costs of production, staffing costs, and operating costs also impact working capital.
- These fees are based on either the manufacturing techniques and equipment throughout the warehouse, this same competence of the employees, respectively.
Answer:
3,600 units
Explanation:
Given:
Selling price per unit = $30
Variable cost per unit = $12
Contribution per unit = Selling price - variable cost
= 30 - 12
= $18 per unit
Fixed cost = $54,000
Increase in fixed cost this year = 54,000 × 1.2 = $64,800
Break even point in units = Fixed cost / contribution margin
Since only fixed cost increase and selling price and variable cost remain same, contribution margin will be $18 per unit
Break even point in units = 64,800 / 18
= 3,600 units
