Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
Answer:
a. 19.750 b. 138.250
Explanation:
A. We divide 158.000 by 8 to get the amount per year
158.000/8= 19.750
- Amortization expense (Db) 19.750
- Accumulated amortization (Cr) 19.750
B. On the balance sheet at the end of the first year, we would subtract those 19.750 to the gross value of the patent and the value of the patent would be
158.000 - 19.750 = 138.250
<u><em>Net carrying amount of the patent:</em></u><em> 138.250</em>
Answer:
$440,000
Explanation:
Sassy Company budgeted operating income
Operating income will be :
(20-12) $80,000 - $200,000
=8×$80,000-$200,000
=$640,000-$200,000
=$440,000
Therefore the budgeted operating income at a level of 80,000 widgets per month will be $440,000
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
