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soldi70 [24.7K]
2 years ago
13

Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer

e $1,992,000 on March 1, $1,272,000 on June 1, and $3,020,740 on December 31. Waterway Company borrowed $1,012,250 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,458,400 note payable and an 10%, 4-year, $3,504,400 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
Business
1 answer:
USPshnik [31]2 years ago
8 0

Answer:

9.59%

Explanation:

The computation of the weighted-average interest rate used for interest capitalization purposes is shown below:

<u>Particulars                               Amount           Interest  </u>

9%, 5-year note payable      $2,458,400       $221,256  

10%, 4-year note payable      $3,504,400      $350,440  

Total                                        $5,962,800      $571,696  

So, Weighted-average interest rate is

= $571,696 ÷ $5,962,800

= 9.59%

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The measure of a product, service, or company's profitability is its profit margin. The bigger the percentage representing the profit margin, the more profitable the company is.

Profitability is gauged by profit margin. Finding the profit as a proportion of revenue is used to calculate it.

Profit margin=44.9%

Explanation to the answer:

Profit margin =Net income / sales

                    =7,050,000 / $ 15,700,000

                    =0.44904

                    =44.9%

Profit margin =44.9%

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Answer:

review your progress, reevaluate, and revise your plan

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Fremont Enterprises has an expected return of 12 % and Laurelhurst News has an expected return of 24 %. If you put 56 % of your
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Answer:

     = 18.7%

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Crowding out may occur when fiscal policy involves increases in government purchases. This borrowing in turn, affects the money that will be available to the private investors as there'll be lesser funds for them.

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