Answer:
Production= 26,000
Explanation:
Giving the following information:
budgeted sales of 23,000 units, targeted ending finished goods inventory of 9,000 units, and beginning finished goods inventory of 6,000 units.
<u>To calculate the production required, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
Production= 23,000 + 9,000 - 6,000
Production= 26,000
Answer:
B) 9.1%
Explanation:
Cost of debt is the interest rate paid by a company due to borrowing money; i.e debt from investors.
$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;
First, find pretax cost of debt ;
Pretax cost of debt = (Interest expense / Face value of debt )*100
= (26,000,000/ 185,000,000 )*100
=0.1405 *100
= 14.05%
Next, use pretax cost of debt to find after-tax cost of debt;
After-tax cost of debt = Pretax cost of debt (1-tax)
= 14.05% *(1-0.35)
= 9.13%
Therefore, Westford's cost of debt capital is 9.1%
My head hurts reading this...
Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the banks add the entire $100 to reserves, the money supply increases, but if the bank lends out some of the $100, the money supply decreases.
