What is the primary reason to issue stock?

A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec

Orlov [11]

Answer:

Explanation:

Last year Current year

Selling Price 10 10

Varaible Price 5 6

Contribution Margin 5 4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method : first In first out system

Fix Cost = 86000

contribution from opening units(6000*5) = 30000

Remaining Fix cost that should be Covered from

current year products = 56000

Units to be sold for break-even ( 56000/4) = 14000

so we have break even units 6000+14000 = 20000

Fix cost = -86000

Opening 6000*5 = 30000

Current 14000*4 = 56000

Profit = 0

Break Even using LIFO method : Last in first out

Fix Cost = 86000

Break even = Fix Cost / Contribution margin

Break even = 86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

4 0

3 years ago

32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent. The firm has 7,350

pashok25 [27]

Answer:

WACC = 11.1%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Market of securities

Common stock = $80 × 32,500= 2,600,000.

Preferred stock = $95.50 × 7,350= 701,925.00

Bond = 407,000/100 × 111.5= 453,805.00

Cost of each capital type

Common stock= 12.95

Preferred stock = (7.90%× 100)/95.50= 8.3%

Bond= 8.11%× (1-0.4)=4.87%

WACC

Type Market Value Cost Market value cost

Common stock 2,600,000. 12.95% 336,700.00

Preferred 701,925.00 8.3% 58,065.00

Bond 453,805.00 4.87% 22,100.30

Total 3,755,730.00 416,865.30

WACC = (416,865.30 / 3,755,730.00) × 100

= 11.1%

WACC = 11.1%

4 0

3 years ago

Tinker's cost of goods sold in the year of sale (2019) was $790,000 and 2018 cost of goods sold was $810,000. The inventory at t

gladu [14]

Answer:

91 days

Explanation:

Here, we are to calculate the average number of days it will take to sell its inventory in 2019.

We proceed mathematically as follows;

Inventory turnover=COGS/Average inventory

Average inventory=(192,000 + 202,000)/2=$197,000

hence inventory turnover=(790,000/197,000)= 4.01

hence average days to sell=365/4.01 =91 days (approx)

6 0

3 years ago

Statutes that require proof of character and skill and impose penalties for violation are considered to be revenue-raising in na

denis23 [38]

I think its true. I don't think its false so true

4 0

3 years ago

Universal Containers' contact center manager needs to measure the following metrics: - Agent productivity - Customer satisfactio

VLD [36.1K]

Answer: Average handle time

First contact resolution

Explanation:

Since the center manager needs to measure the productivity of the agent and the customer satisfaction, the report that should be recommended by a consultant would be the average handle time and the first contact resolution.

The average handle time shows the time taken for a transaction to be completed. This can be used to determine the productivity of agents. Also, first contact resolution can be used to determine customer satisfaction as it shows the number if queries that were successfully resolved.

8 0

2 years ago