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4 years ago

The payment to entrepreneurship is called

1 answer:

6 0

Profit is the payment to entrepreneurship. When the entity’s amount earned exceeds the amount spent in buying, operating, or producing something and it has a financial gain, this is then the term we call the profit. This is what an entity obtains when the amount of revenue from a business activity exceeds the expenses, costs and taxes which are all needed to sustain the activity. The owner may or may not decide to use the profit on the business. This is also defined as the money the business makes after all the expenses have been taken into account. It is any company’s goal to consistently earn profit. This is the reason why much of business performance is based on the various forms related to profitability.

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Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupo

kodGreya [7K]

Answer:

5.4%

Explanation:

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation

Face value of bond = coupon amount / interest rate

1000 = 80 / 8%

Therefore 900.9 = 80 / revised interest rate

multiply both sides by the 'revised interest rate

revised interest rate x 900.9 = 80

Hence, revised interest rate = 80 / 900.9 = 9%

Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)

where:

kd = Cost of debt

t = tax rate

Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%

4 0

3 years ago

Tamarisk, Inc. has the following inventory data:

disa [49]

Answer:

COGS= $5,910

Explanation:

Giving the following information:

Beginning inventory= 90 units at $19

Purchases 315 units at $20

Purchases 45 units at $22

Ending inventory= 150 units

First, we need to determine the number of units sold:

Units sold= 450 - 150= 300 units

Under the FIFO (first-in, first-out) method, the cost of goods sold is calculated using the cost of the first units incorporated:

COGS= 90*19 + 210*20= $5,910

4 0

3 years ago

The Water Sports Company soon will be producing and marketing a new model line of motor boats. The production manager, Michael J

Licemer1 [7]

Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a. For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 = $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then : 1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

4 0

3 years ago

Alliance Company’s budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4

anyanavicka [17]

Answer:

Budgeted material cost for January is $ 256,000

Explanation:

Computations

Raw materials requirement for January

Units to be produced in January 24,000 units

Raw material requirement for January at 4 pounds per unit 96,000 pounds

Raw materials requirement for February

Units to be produced in February 28,000 units

Raw material requirement for February at 4 pounds per unit 112,000 pounds

40 % of requirement of February to be available end January 44,800 pounds

Purchases for January

Closing Inventory+ Consumption -Opening Inventory

44,800 pounds + 96,000 pounds - 38,400 pounds = 102,400 pounds

Cost per pound $ 2,50 per pound = $ 256,000

4 0

3 years ago

A company recently announced that it would be going public. The usual suspects, Morgan Stanley, JPMorgan Chase, and Goldman Sach

Deffense [45]

Answer:

$42.5 billion

Explanation:

the expected value formula = ∑ (valueₙ x probabilityₙ)

expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)

= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion

8 0

3 years ago