Answer:
Cost of capital = 12.40%
Explanation:
given data
cost of equity = 15.4 percent
pretax cost of debt = 8.9 percent
debt-equity ratio = 0.46
tax rate = 34 percent
to find out
What is the cost of capital for this project
solution
first we get Equity multiplier that is express as
Equity multiplier = 1 + debt-equity ratio ..................1
put here value
Equity multiplier = 1 + 0.46
Equity multiplier = 1.46
and
Weight of equity will be
Weight of equity = 
....................2
put here value
Weight of equity = 
Weight of equity = 0.6849
and
Weight of Debt will be here
Weight of Debt = 1 - weight of equity ...........................3
put here value
Weight of Debt = 1 - 0.6849
Weight of Debt = 0.3151
so
Cost of capital will be here as
Cost of capital = Weight of Debt × pretax cost of debt × (1- tax rate ) + cost of equity × Weight of equity .....................4
put here value we get
Cost of capital = 0.3151 × 8.9% × (1 - 0.34) + 15.4% × 0.6849
Cost of capital = 12.40%
Answer:
Costs are subtracted from revenues.
Explanation:
As we know
Profit is calculated when the cost is subtracted from revenues.
In mathematically,
The profit = Revenues - cost
The profit which would be calculated above is shown in the debit side of the income statement.
As the income statement records all the expenses or cost incurred and all the revenues which are generated
Answer:
The correct answer is B. The decrease in price causes the quantity demanded in this market to increase by 6 packs.
Explanation:
quantity demanded in this market @ $2= 3+2+1=6
quantity demanded in this market @$1.50 =4+5+3 =12
Net increase in quantity demanded is 12-6 = 6
Answer:
$750
Explanation:
Calculation to determine what the amount of supplies expense reported on the Year 2 income statement is:
Using this formula
Supplies expense=Balance in Supplies account
+Cash paid to purchase supplies)-Supplies on hand
Let plug in the formula
Supplies total amount =($200 + $600) -$50
Supplies total amount=$800-$50
Supplies total amount=$750
Therefore the amount of supplies expense reported on the Year 2 income statement is:$750.
Answer: 5
Explanation:
From the question, we are informed that the marginal cost is constant and equal to 50 and marginal revenue equals 100 - 10Q.
For a profit-maximizing monopolist, we should note that the marginal revenue will be equated to the marginal cost. Therefore:
100 - 10Q = 50
100 - 50 = 10Q
50 = 10Q
Q = 50/10
Q = 5
Therefore, a profit-maximizing monopolist will set quantity equal to 5.
