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3 years ago

In contrast to cost of capital, financial capital does what?

Business

1 answer:

Igoryamba3 years ago

5 0

Answer:

2.Refers to the debt and equity claims making up the liability side

Explanation:

The cost of capital is the cost of the owners of the business gives to their investment

While the financial capital is the investment made for third parties in exchange of interest yields. Also it may be convertible to equity if preferred for the investor or based on terms in the contract.

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Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total

Lostsunrise [7]

Answer:

Product margin= $9,607.5

Explanation:

First, we need to calculate the allocation rates:

Assembly= 1,533,840 / 77,000= $19.92 per machine-hour

Processing orders= 91,065 / 1,950= $46.7 per order

Inspection= 139,788 / 1,980= $70.6 per inspection-hour

Now, we need to allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Assembly= 19.92*660= 13,147.2

Processing orders= 46.7*50= 2,335

Inspection= 70.6*10= 706

Total= $16,188.2

Finally, the product margin for product S78N:

Product margin= 430* (124.3 - 51.25 - 13.06) - 16,188.2

Product margin= $9,607.5

4 0

2 years ago

Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,150 C

QveST [7]

Answer:

The quick ratio can be worked out as below;

Explanation:

Quick ratio=Current Assets excluding inventory stocks/Current liabilities

Current Assets=210+800

Current liabilities=$1,260

Quick Ratio =($210+4800)/$1,260

Quick Ratio=1.25

3 0

3 years ago

Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of

vlabodo [156]

Answer:

$10,620

Explanation:

Depreciation for Year 1 = 0.202 × $50,000

= $10,100

Depreciation for Year 2 = 0.323 × $50,000

= $16,150

Depreciation for Year 3 = 0.194 × $50,000

= $9,700

Depreciation for Year 4 = 0.125 × $50,000

= $6,250

Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250

= $42,200

Book value of machine as on date of sale:

= Purchase price - Accumulated depreciation

= $50,000 - $42,200

= $7,800

Selling price = $12,500

Gain on sale of machine = $12,500 - $7,800

= $4,700

Tax rate = 40%

Tax on capital gain = $4,700 × 0.40

= $1,880

Net proceeds on sale of machine:

= Selling price – Tax paid on capital gain

= $12,500 - $1,880

= $10,620

8 0

3 years ago

You are offered a chance to buy an asset for $200,500 that is expected to produce cash flows of $100,000 at the end of Year 1, $

Lapatulllka [165]

Answer:

What rate of return (IRR) would you earn if you bought this asset?

8,48%

Explanation:

To find the IRR it's necessary to know which is the discount rate that applied to the cash flow of the assets gives a value that compensate the investment of $200,500.

Year 1 $100.000 / (1+0,0848)^1 = $92.182

Year 2 $100.000 / (1+0,0848)^2 = $35.690

Year 3 $100.000 / (1+0,0848)^3 = $41.398

Year 4 $100.000 / (1+0,0848)^4 = $31.230

Total Present Value of Cash Flow=

$92.182 + $35.690 + $41.398 + $31.230 = $200,500

There is no way to find the IRR without Excel, the only way is to try with different rates in the current cash flow formula.

3 0

3 years ago

Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand.

andrew-mc [135]

Answer:

The firm will sell 600 units at $20

Explanation:

Giving the following information:

d = annual demand for a product in units

p = price per unit

d = 800 - 10p

p must be between $20 and $70.

Elastic demand

We have to calculate how many units the firm will sell at $20

d=800-10*p=800-10*20= 600 units

3 0

3 years ago