Answer:
A store that buys a shipment of new computers cant afford to buy new phones.
Explanation:
Answer:
WACC = 11.45 %
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke) + (Wp × Kp)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt = 11.1%(1-0.4) =6.66%
Ke-Cost of equity = 14.7%
Kp= Cost of preferred stock = 12.2%
Wd-Weight of debt =100/270=0.370
We-Weight of equity = 140/270=0.518
Wp= weight of preferred stock = 30/270=0.111
WACC = (0.518× 14.7%) + (0.370 × 6.7%) + (0.111×12.2) = 11.447%
WACC = 11.45 %
Answer:
$15.625
Explanation:
The computation of the no-arbitrage U.S. price of one ADR is shown below:
= Euro U.S. dollar spot exchange rate × closing price per share × number of shares
= €.625 × €5 per share × 5 shares
= $15.625
Simply we multiply the Euro U.S. dollar spot exchange rate with the closing price per share and the number of shares so that the correct price of one ADR can be come
Answer:
$238.18
Explanation:
For calculation of target cost first we need to follow some steps which is shown below:-
Step 1
Operating income before = Sold television - Cost
= $380 - $290
= $90
Step 2
Total operating income = $90 × 120,000
= 10,800,000
Step 3
New sales in units = Target operating income ÷ Increase percentage
= 10,800,000 ÷ (120,000 × 110%)
= 10,800,000 ÷ 132,000
= $81.82
Finally
So, the Target cost = Lower price - New sales in units
= $320 - $81.82
= $238.18
Answer:
True
Explanation:
An income statement is among the three important financial statements that a business prepares at the end of every financial year. It is divided into three main sections of revenues, expenses, and income.
The revenue section lists all sources of revenues and any adjustments to obtain the net revenue. The expenses section shows all business expenses and their total. The income section is the difference between revenue and expenses. A positive income means the made profits, while a negative income indicates losses.
