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2 years ago

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A company is 40% financed by risk-free debt. the interest rate is 10%, the expected market risk premium is 8%, and the beta of t

he company’s common stock is .5.

1 answer:

Evgen [1.6K]2 years ago

6 0

What is the question? i need more details to helpp you properly

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Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income fo

tankabanditka [31]

Answer:

$726,100

Explanation:

Preparation of the operating activities section of the 2021 statement of cash flows.

Cash Flow from Operating Activities

Net Income $634,000

Adjustments:

Depreciation and amortization $89,000

Changes in operating asset and liabilities

Decrease in Account receivable $24,000

Increase in Inventory $ (9,400)

Increase in Prepaid expenses $ (8,700)

Increase in Salaries payable $10,200

Decrease in Income tax payable $ (13,000)

Operating activities $726,100

Therefore the operating activities section of the 2021 statement of cash flows will be $726,100

6 0

2 years ago

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

mojhsa [17]

Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

A cost-reimbursable contract is an agreement between two parties called the contractor and the owner. Here the contractor gets the reimbursement for the cost incurred while carrying out the work as per the contract, and also gets an additional fixed fee from the company or an owner.

Here the final pricing of the contract is determined later based on the underlying deal and the actual costs it took to complete a project given to the contractor.

Hence, cost-reimbursable contracts involve payment for direct and indirect actual costs.

To learn more about cost-reimbursable here:

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7 0

1 year ago

On September 1, 2020, Windsor Company sold at 104 (plus accrued interest) 3,840 of its 8%, 10-year, $1,000 face value, nonconver

Rzqust [24]

Answer:

total sales value = 3,840 x $1,000 = $3,840,000 x 1.04 = $3,993,600

since each bond carried 2 detachable stock warrants, we must include in the bond issuance the value of the stock warrants = 3,840 bonds x 2 warrants x $2 per warrant = $15,360

the premium on bonds payable = total cash received - bonds payable - stock warrants = $3,993,600 - $3,840,000 - $15,360 = $138,240

the journal entry for recording the bond issuance:

September 1, 2020, 3,840 8% bonds issued

Dr Cash 3,993,600

Cr Bonds payable 3,840,000

Cr Premium on bonds payable 138,240

Cr Additional paid in capital - warrants 15,360

5 0

3 years ago

a guitar manufacturing company, launched 1000 high-quality, limited-edition guitars worldwide at a premium price of $10,000 per

larisa [96]

Answer:

skimming prices

Explanation:

Based on the scenario being described it can be said that it can be concluded that Timber Guitars has adopted the strategy of skimming prices. This is a a pricing strategy in which a company or marketer sets a relatively high starting price for their products in the beginning of introducing it into the market, then only after some time has passed do they begin to lower prices slowly. Which is what Timber Guitars has done by placing the guitar at a very high price and only lowering it after a good quantity were sold.

7 0

3 years ago

Tori and Scott have applied for an $8,000 installment loan to pay for a new car. They are told that the loan is approved and the

maks197457 [2]

Answer: They have already signed the contract with the first deal and now the only option to them is to take the original deal since they have already signed the contract which means they now have a legal duty to that first dealer .

Explanation:

What is legal duty?

Legal duty is a legally binding obligation on a contract to follow the law when doing something towards the other part. Since they have signed it is legally binding that they now take the original deal or the first deal.

6 0

3 years ago