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3 years ago

You are considering opening a new plant.

Business

1 answer:

kotykmax [81]3 years ago

6 0

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

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What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by

Bond [772]

Answer:

The answer is: D) Dividend growth model

Explanation:

The dividend growth model is a stock valuation model which calculates the fair market value of stock by assuming that the stock's dividends grow at a stable rate in perpetuity.

The dividend growth model determines if a stock is overpriced or underpriced, based on the assumption that the stock's expected dividends grow at a given value (g) forever, which is subtracted from the return rate (r).

Price = Dividend / ( r – g )

5 0

3 years ago

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units

viva [34]

Answer:

WA 1,682

LIFO 910

FIFO 2,260

Explanation:

$\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right]$

We add the units purchase and the subtotal to get the total units available for sale.

Ending inventory physical units: 970 - 810 = 160 units

<u>Then, we calculate for each method:</u>

Weighted average:

cost of goods / available units = 10,190 / 970 = 10.51

160 units x 10.51 = 1,681.6‬

LIFO:

Ending inventory will be the oldest units:

160 units x 8 = 960

FIFO:

Ending inventory will be the newest units as the units are sold as soon as they come in

90 x 15 = 1,350

70 x 13 = 910

Total 2,260

5 0

4 years ago

A machine that cost $36,000 and on which $26,500 of depreciation had been recorded was disposed of for $10,200. Indicate whether

ad-work [718]

Answer:

The Gain of $700.

Explanation:

For the computation of gain or loss first we need to find out the book value which is shown below:-

Book value = Purchase cost - Accumulated Depreciation

= $36,000 - $26,500 = $9500

Gain or Loss = Selling Price - Book Value

= $10,200 - $9500

= $700

So, there is a

The Gain of $700 as selling price is more than the book value

Therefore for computing the gain or loss we simply applied the above formula.

8 0

3 years ago

hen a company issues 37,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would inc

IRISSAK [1]

Answer:

Debit Cash Account $370,000

Credit Common Stock Account $37,000

Credit Share Premium Account $333,000

Explanation:

Given a par value of $1, and an issue price of $10, the shares were issued at a premium of (10 - 1 = ) $9.

Therefore, the journal entry are as follows.

Debit Cash Account (37,000 * $10) = $370,000

Credit Common Stock Account (37,000 * $1) = $37,000

Credit Share Premium Account (37,000 * $9) = $333,000.

7 0

3 years ago

Students can earn a GED by

AysviL [449]

Students can get a GED by

D) passing a test that awards a Certificate of High School Equivalency

Explanation:

GED has a bad rep among the students because it is not said to be favored by professionals or college but that is not the case entirely and one can be giving a GED for a various number of reasons.

If the person has not been able to cross high school for some reason and has been out of school for 10 months and does not want to wait another year, or simply cannot go for another year for the school they can get this test.

It is basically an equivalent test to the one that is usually touted to the kids as high school passing.

6 0

3 years ago