List the steps of the basic problem-solving procedure

Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60

Serggg [28]

Answer:

d. 12.6%

Explanation:

Rollins Corporation will receive $100 - ($100 x 5% flotation costs) = $100 - $5 = $95 net for each preferred stock issued

Since it will have to pay $12 on preferred dividends, the cost of preferred stocks = preferred dividend per preferred stock / net amount received per preferred stock = $12 / $95 = 0.1263 = 12.6%

Flotation costs are costs that a corporation incurs when issuing new stocks or bonds, and they include legal fees, underwriting fees, etc.

4 0

3 years ago

Which agency enforces truth in advertising laws and defines deceptive and unfair advertising practices?

forsale [732]

The agency which enforces truth in advertising laws and defines deceptive and unfair advertising practices is the FTC, or the Federal Trade Commission

5 0

3 years ago

Department S had no work in process at the beginning of the period. It added 13,600 units of direct materials during the period

lora16 [44]

Answer:

Cost of units completed = $176,528

Workings are attached:

Explanation:

Equivalent unit of production

An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Basically the fully completed units and the partially completed units are expressed in terms of fully completed units.

Equivalent units are used in the production cost reports for the producing departments of manufacturers using a process costing system. Cost accounting textbooks are likely to present the cost calculations per equivalent unit of production under two cost flow assumptions: weighted-average and FIFO.

Conversion costs

Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs. In other words, conversion costs are a manufacturer's product or production costs other than the cost of a product's direct materials.

Expressed another way, conversion costs are the manufacturing or production costs necessary to convert raw materials into products.

The term conversion costs often appears in the calculation of the cost of an equivalent unit in a process costing system.

For the sake of this question, we will be determining the equivalent units of production:

Units completed and transferred subject to material and conversion costs
Units in the closing inventory subject to material and conversion costs
We will then calculate the cost per units with respect to material and conversion costs for the equivalent units.
These cost per units will enable us to determine the cost of items completed.

Download xlsx

4 0

3 years ago

How much would it cost for chester corporation to repurchase all its outstanding shares if the price fell by 10%? assume no brok

NeX [460]

The cost for Chester corporation to repurchase all its outstanding shares if the price fell by 10% is $214.1 million.

<h3>How to calculate the cost?</h3>

It should be noted that the market value will be:

= Outstanding shares × Closing price per share

= 1906233 × 112.33

= $214.1 million.

In conclusion, the cost for Chester corporation to repurchase all its outstanding shares if the price fell by 10% is $214.1 million.

Learn more about shares on:

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8 0

2 years ago

Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of

Ivan

Answer:

Explanation:

The first part of the question is missing, so I looked for a similar question to fill in the blanks.

Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment.

Accounts receivable $858,000

Estimated percentage uncollectible 10%

Allowance for uncollectible accounts $20,000 (credit)

Operating income $249,000

1. Record the adjustment for uncollectible accounts using the accountant's estimate of 10% of accounts receivable.

Dr Bad debt expense 65,800

Cr Allowance for uncollectible accounts 65,800

($858,000 x 10%) - $20,000 = $65,800

2. After the adjustment is recorded in Requirement 1, what is the revised amount of operating income?

$183,200

3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Explain.

bad debt expense = ($858,000 x 7%) - $20,000 = $40,060

so adjusted net income = $249,000 - $40,060 = $208,940

Willie will get his bonus.

By how much would total assets and operating income be misstated using the 7% amount?

$65,800 - $40,060 = $25,740

6 0

4 years ago