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Mama L [17]
2 years ago
9

"A corporation has annual sales of​ $18 million, total assets of​ $4 million, a debt ratio of​ 40%, depreciation expense of​ $20

0,000, and a tax rate of​ 40%. The​ corporation's total​ stockholders' equity is equal to"
Business
1 answer:
oee [108]2 years ago
6 0

Answer:

$2.4 million

Explanation:

The total assets of the firm are funded by both debt and equity,hence, the total assets is the same as total equity plus total debt based on the accounting equation formula below:

total assets=equity+debt

tota assets=$4 million

equity=unknown

debt can be  derived using the debt ratio as shown thus:

debt ratio=debt/total assets

debt ratio=40%

debt=unknown

total assets=$4 million

40%=debt/$ 4 million

debt=40%*$4 million

debt=$1.6 million

$4 million=equity+$1.6 million

equity=$4 million-$1.6 million

equity =$2.4 million

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Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p
raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

                                     = 1.75

Therefore, the  capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

                       = 1.00 ÷ 1.75

                       = 0.5714 or 57.14 %

7 0
3 years ago
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
Delicious77 [7]

Answer:

$50.57 ; $175,573.6

Explanation:

The computation of the fixed and variable portions of overhead costs based on machine-hours using high low method is shown below:

Variable cost per hour = (High Overhead cost - low overhead cost) ÷ (High machine hours - low service hours)

= ($581,145 - $503,775) ÷ (8,020 hours - 6,490 hours)

= $77,370 ÷ 1,530 hours

= $50.57

Now the fixed cost equal to

= High overhead cost - (High machine hours × Variable cost per hour)

= $581,145 - (8,020 hours × $50.57)

= $581,145 - $405,571.4

= $175,573.60

3 0
3 years ago
How can learn about this app and it's functin any one looking forward to give me an idea​
Tems11 [23]
This app is like all the answers to what you need like math science English ETC it’s basically an app for Homework or Work
7 0
2 years ago
Photo Framing's cost formula for its supplies cost is $1,090 per month plus $19 per frame. For the month of November, the compan
Zepler [3.9K]

Answer:

Spending Variance    $389   Unfavorable

Explanation:

<em>The spending variance is the difference between the standard cost allowed for the actual level of activity and the actual cost incurred.</em>

                                                                              $

Standard allowance ($19× 609) + 1090         12,661    

Actual cost                                                        1<u>3,050</u>

Spending Variance                                           <u>  389   Unfavorable</u>

5 0
3 years ago
Read 2 more answers
An investor is considering buying one of two 10-year, $1,000 face value, noncallable bonds: Bond A has a 7% annual coupon, while
klemol [59]

Answer:B. One year from now Bond A's price will be higher than it is today.

Explanation:A Noncallable bond is a bond whose investment cannot be redeemed before its maturity date by the issuer, it can only be redeemed after the payment of a penalty.

The issuer of a noncallable bond makes itself vunerable to interest rate risk mainly because, at the issuance of the bond, it is locked to the interest rate it will pay only when the bond's maturity date is achieved.

Coupon rate is the rate at which a bond repay its owner,it can be annual.

3 0
3 years ago
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