Answer:
10.34%
Explanation:
Calculation to determine what will Nantucket's new WACC be
New Firm Value= $640,000 + (.34) ($300,000)
New Firm Value= $742,000
Capital Structure = $300,000 + $442,000
($742,000-$300,000=$442,000)
rs = .12 + (300/442) * (.12 - .08) * (1 - .34)
rs= .12 + .0179
rs = .1379*100
rs = 13.79%
Now let calculate the New WACC
New WACC = (300/742) * (.08) * (1 - .34) + (442/742) * (.1379)
New WACC= .0213 + .0821
New WACC= .1034*100
New WACC= 10.34%
Therefore what will Nantucket's new WACC be is 10.34%
Answer:
Aug. 1 Cash 37,800
Common Stock 37,800 (Investment of cash for stock)
Dr.Cash 37,800
Cr. Common stock 37,800
10 Cash 17,010
Service Revenue 17,010 (Received cash for services performed)
Dr. Cash 17010
Cr. Service Revenue 17010
12 Equipment 31,500
Cash 5,040
Notes Payable 26,460 (Purchased office equipment for cash and notes payable)
Dr. Office Equipment 31500
Cr. Cash 5040
Cr. Account Payable 26460
25 Account Receivable 10,080
Service Revenue 10,080 (Billed clients for services performed)
Dr. Account Receivable 10080
Cr. Sales 10080
31 Cash 5,544
Accounts Receivable 5,544 (Receipt of cash on account)
Dr. Cash 5544
Cr. Account Receivable 5544
T account are prepared in the attached MS Excel File, Please find that.
Answer:
Option D is the correct option. Please choose option D that is $150,000.
Explanation:
Amount of paid-in capital from treasury stock transactions = Shares exchanged * (Market Price - Share purchase Cost)
Where Shares exchanged = 25000
Market price = $45
Cost of share = $39
Therefore, the amount of paid-in capital from treasury stock transactions = 25000 shares * (45 - 39) = $150,000
Option D $150,000 is correct
Answer:
Manufacturing overhead volume variance= $1,200 unfavorable
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Fixed Predetermined manufacturing overhead rate= 1,200,000/240,000
Fixed Predetermined manufacturing overhead rate= $5 per machine hour
<u>Now, to calculate the fixed manufacturing overhead volume variance, we need to use the following formula:</u>
<u></u>
Manufacturing overhead volume variance = Actual Factory Overhead - Budgeted Allowance Based on Standard Hours
Manufacturing overhead volume variance= (101,200) - (5*20,000)
Manufacturing overhead volume variance= $1,200 unfavorable
Answer:
Cost of a single bar = 2.52 AED (2.4 AED + 0.12 AED)
Explanation:
Cost of a box of 25 pieces of chocolate = 50 AED
Cost per bar for seller = 50 AED/25 = 2 AED
Selling price = 2.4 AED (2 AED * 1.2)
Plus 5% VAT = 0.12 AED (2.4 AED * 5%)
Cost of a single bar = 2.52 AED (2.4 AED + 0.12 AED)
b) The cost price to the seller is the cost of a box divided by the pieces or bars in the box, = 50 AED / 25 = 2AED
c) The cost price to the buyer is the selling price plus 5% VAT. This cost includes the seller's cost, profit, and VAT.