Answer:
Variable overhead efficiency variance= $110 favorable
Explanation:
Giving the following information:
The quantity standard is 1.4 hours per unit.
The variable overhead rate standard is $11.00 per hour.
The company produced 1,450 units using 2,020 direct labor-hours.
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
standard quantity= 1.4*1,450= 2,030
Variable overhead efficiency variance= (2,030 - 2,020)*11
Variable overhead efficiency variance= $110 favorable
Answer:
b. false
Explanation:
Generally, this statement is incorrect because the company should be viewed as an ongoing company and the use of debt (or equity) to fund a given project will change the capital structure and this factor should determine the cost of capital on all projects on the target capital structure. "Prague Ekt financing "may be used and in particular the status of the project will be considered. It is a very specific situation, however, it" usually "is not.
Answer:
a)
Cost of debt (after tax) = 5.4%
Cost of preferred stock (
) = 10.53%
Cost of common stock (
) = 16.18%
b)
WACC = 14%
c)
project 1 and project 2
Explanation:
Given that:
Debt rate (
) = 9% = 0.09
Tax rate (T) = 40% = 0.4
Dividend per share (
) = $6
Price per share (
) = $57
Common stock price (
)= $39
Expected dividend (
) = $4.75
Growth rate (g) = 4% = 0.04
The target capital structure consists of 75% common stock (
), 15% debt (
), and 10% preferred stock (
)
a)
Cost of debt (after tax) =`
Cost of debt (after tax) = 5.4%
Cost of preferred stock () = 
= 10.53%
= 10.53%
Cost of common stock () = 
= 16.18%
b)
WACC = 14%
c) Only projects with expected returns that exceed WACC will be accepted. Therefore only project 1 and project 2 would be accepted
Answer: C. clean and fast-growing and that pay
Explanation:
For using $money$ in the near future but not right away.
