An increase in a current asset account, other than cash, results in an addition in calculating operating cash flows.

Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information: the f

levacccp [35]

Answer:

Explanation:

First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;

Maturity of the bond : N = 20

Annual coupon payment; PMT = 8%*1000 = 80

Face value; FV = 1000

Price of the bond ; PV = -1,050

then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)

Next, find the cost of equity (rE) using CAPM;

CAPM; r = risk free + beta (Market risk premium)

rE = 0.0450 + 1.20(0.0550)

rE = 0.0450 + 0.066

= 0.111 or 11.1%

Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;

w = weight of..

rD= pretax cost of debt

WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]

WACC = 0.07215 + 0.015771

= 0.0879

Therefore, WACC = 8.79%

3 0

4 years ago

can purchase a service contract for all of her major appliances for $180 a year. If the appliances are expected to last for 10 y

Ghella [55]

Answer:

$2,264.04

Explanation:

To find future value we use the formula:

Future Value = Annual payment × Future value annuity factor

Therefore,

$FV = P * [((1+r)^n - 1) / r]$

Where P = Principal amount = $180

r = rate = 5% == 0.05

n = 10 years

$= 180 *[((1+0.05)^1^0) / 0.05]$

$= $180 * 12.578$

= $2,264.04

Therefore the Future Value is $2,264.04

3 0

3 years ago

_____ is a delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outri

zhuklara [117]

Answer:

b. SaaS

Explanation:

The full form of SaaS is software as a service. It is a software which is to be paid by per user rather than buying the outright of the software. It is a subscription based where the user must have to pay the subscription fees on a monthly or yearly basis. When the subscription tenure is expired the user must have to pay the charges again to take the service

Therefore the option b is correct

3 0

3 years ago

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department fol

8_murik_8 [283]

Explanation:

Equivalent units

Materials Labor Overhead

Work in process inventory, 23,100.00 34,650.00 34,650.00

beginning

Units started and completed 6,73,000.00 6,73,000.00 6,73,000.00

Work in process inventory, 28,000.00 14,000.00 14,000.00

ending

Equivalent units 7,24,100.00 7,21,650.00 7,21,650.00

First department cost per unit for first department

Materials Labor Overhead Total

Current costs 11,94,765.00 2,88,660.00 5,05,155.00 19,88,580.00

Equivalent units 7,24,100.00 7,21,650.00 7,21,650.00

Cost per Equivalent unit 1.65 0.40 0.70 2.75

The equivalent units for materials,labor and overhead are as follows:

Equivalent units

Materials 724,000

Labor 721,650

Overhead 721,650

In addition,the cost per unit for equivalent units are as follows:

Materials 1.65

Labor 0.40

Overhead 0.70

Total 2.75

7 0

3 years ago

What is revolving credit? A. Credit when the borrower makes regular monthly payments B. Credit that requires payment in full on

valentinak56 [21]

Hey hun the answer woild be c

4 0

3 years ago

Read 2 more answers