Answer:
36.35%
Explanation:
According to the scenario, computation of the given data are as follows,
Sales = $78,400
Net income = $2,400
Cost of goods sodl = $43,100
Depreciation = $6,800
So, we can calculate the EBIT value by using following formula:
= EBIT ÷ Sales
= ($78,400 - $43,100 - $6,800) ÷ ($78,400)
= $28,500 ÷ $78,400
= 36.35%
Hence, the common-size statement value of EBIT is 36.35%
Event recording and direct observation methods
Answer:
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
Explanation:
WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt
16% = 45%* Cost of Equity + 55%*(1-40%)*9%
16%-55%*(1-40%)*9% = 45%*Cost of Equity
Cost of Equity = 28.9556%
Current price of Stock = D1/(Cost of Equity - Growth)
25 = 4/(28.9556%-Growth)
Growth = 28.9556%-4/25 = 12.96%
ROE = Net income/Equity = 1.4/(45%*9)
Growth rate = (1- Payout ratio)*ROE
12.96% = (1-Payout ratio)* 1.4/(45%*9)
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
Answer:
D. Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss
Explanation:
Answer:
Over the economic life of the asset.
Explanation:
An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.
In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).
