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3 years ago

Last year, Green Corporation incurred the following expenditures in the development of a new plant process:

Business

1 answer:

zloy xaker [14]3 years ago

4 0

Answer:

$50,400

Explanation:

Calculation to determine the amount of the deduction for the current year

First step is calculate the Research and experimental costs

Salary $250,000

Materials $90,000

Utilities $20,000

Depreciation $18,000

Research and experimental costs $378,000

($250,000+$90,000+$20,000+$18,000)

Now let determine the amount of the deduction for the current year

Current year deduction = $378,000/60 * 8

(Note that May-December will give us 8 months)

Current year deduction = $50,400

Therefore the amount of the deduction for the current year is $50,400

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Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

ad-work [718]

Answer: $7924. 5

Explanation:

Given the following :

Cost of new equipment and timbers - $275,000

Working capital required - $100,000

Annual net cash receipts - $120,000

Cost to construct new roads in year three - $40,000

Salvage value of equipment in four years - $65,000

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3 years ago

Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800.

abruzzese [7]

Answer:

Explanation:

Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800. What is the equity multiplier?

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2 years ago

The economic analysis of minimum wage involves both normative and positive analysis. Consider the following consequences of a mi

ICE Princess25 [194]

Explanation:

First, remember that the difference between normative and positive economic analysis is that;

Normative analysis take a somewhat neutral view by stating how the world should be. While

The Positive analysis states the facts. That is, it describes the world as it is.

Thus, a Normative analysis of the consequence of minimum wage would be the following statements:

c. In some cities such as San Francisco and New York, it would be impossible for low−skilled workers to live comfortably in the city without minimum wage laws.

d. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses.

And a Positive analysis of the consequence of minimum wage would be the following statements:

a. The minimum wage law causes unemployment.

b. A minimum wage law benefits some groups and hurts others.

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3 years ago

Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an

Ilia_Sergeevich [38]

Answer:

A. Project A

B. Project A has lowest Standard Deviation

C. Project D

Explanation:

The higher the range, the more risky the project is. Based on the table, project A has the smallest range, and therefore is the least risky based on range.

The standard deviation is not scale-free, i.e. it is not adjusted for the level of returns. Hence, a project that has the same distribution of returns, but a higher average return, will have a higher standard deviation. But the project is not any more risky. Hence, the standard deviation might not be an appropriate measure of risk.

The Coefficient of Variation (CV) is calculated as follows:

CV = Standard deviation / expected return

Applying this formula, the coefficient of variation for each project is:

Project A: 2.9% / 12.0% = 0.242

Project B: 3.2% / 12.5% = 0.256

Project C: 3.5% / 13.0% = 0.269

Project D: 3.0% / 12.8% = 0.23 4

Based on the coefficient of variation, project D has the lowest coefficient. It means that the project has the lowest risk per unit of return generated, and thus is the best project and should be chosen.

4 0

3 years ago

Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its d

alisha [4.7K]

Answer:

What is the expected dividend yield for Portman's stock today?

d. 6.40%

Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?

a. $0.52 per share

Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900

Explanation:

cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%

dividend in one year = $1.68 x 120% = $2.016

intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50

expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%

Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244

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3 years ago