Answer:
1. $33.33 million
2. $40.00 million
Explanation:
The computation of the value of Milton Industries with leverage is shown below:-
Value of Milton Industries without leverage is
= Free cash flow ÷ unlevered cost of capital
= $5 million ÷ 0.15
= $33.33 million
Value of Milton Industries with leverage is
= Value of Milton Industries without leverage + Tax × Debt
= $33.33 million + 0.35 × $19.05 million
= $40.00 million
Therefore we have applied the above formula.
Answer:
a. $283,140
Explanation:
equivalent units: complete untis + percentage of completion ending units
(notice there is no beginning inventory)
18,000 complete + 2,000 x 100% = 20,000 materials
18,000 complete + 2,000 x 30% = 18,600 conversion cost
equivalent cost: 100,000 / 20,000 = 5
conversion cost: (142,300 + 57,200) / 18,600 = 10,72580 = 10.73
total unit cost: 15.73
transferred-out units: 18,000 x 15.73 = 283.140
Answer:
transferred-out 135,000
Explanation:
We solve using the following identity:
beginning WIP + cost added during the period:
total cost to be accounted for.
Then this value can be either ransferred-out r remain at the ending WIP
so we construct as follows:
beginning 0
added 180,000
Total cost 180,000
ending <u> (45,000) </u>
transferred-out 135,000
A franchise business can be started with purchasing a franchise rights, these rights are usually sold by chain businesses however there are some small businesses who also provide franchise.
<h3 /><h3>What is a Franchise?</h3>
A franchise is a legal right to run the operations of a business under the same name, however there are some factors that needs to be maintained these factors are mentioned in the agreement and must be met by the franchisee at all times.
In return for the franchise there is a lump sum payment which entitles the acquirer/ franchisee for the use of legal name of that business, also these rights are for a certain number of years.
For the duration of the franchise agreement the franchise owner is responsible for all the advertisement expenditure.
When starting a new business it is recommended that a franchise is acquired if they have no past experience of the business.
Learn more about Franchise at brainly.com/question/27158354
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C or a , not sure which one
