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2 years ago

All other things being equal, supply curves slope upwards from left to right because

1 answer:

3 0

In most cases, the supply curve is drawn as a slope rising upward from left to right, since product price and quantity supplied are directly related (i.e., as the price of a commodity increases in the market, the amount supplied increases). ... A change in any of these conditions will cause a shift in the supply curve.

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Adams Corporation's present capital structure, which is also its target capital structure is

kaheart [24]

Answer:

Task a:

The answer is $24,500.

Task b:

The answer is 17%

Explanation:

<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>

We already know the following:

Projected net income = $21,000

Payout ratio = 30%

Retention ratio = 70%

Debt share = 40%

Equity share = 60%

Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income × $\frac{Retention ratio}{Equity share}$

= $21,000 × $\frac{0.70}{0.60}$

= $24,500

<h3>Answer:</h3>

The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.

<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>

k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth

Formula:

k(e) = $\frac{Do(1+g)}{P(1-0.20)}$ + 0.05

Where

Do = $2.00

G = 0.05

P = $21/88

= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05

= ($2.10/$21.88(1-.20)) + 0.05

= ($2.10/$21.88(0.80) + 0.05

= 0.17 or 17%

<h3>Answer: </h3>

The component cost of equity by selling new common stock = 17%

5 0

3 years ago

Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or

s2008m [1.1K]

Answer:

Sun Microsystems

Amount of Expenses to recognize during the months of June, July, and August in each of the following transactions:

a. Rent Expense = $30,000

b. Utility Expense = $4,650

c. Supplies Expense = $9,700

d. Property Taxes = $1,800

e. No expense is recognized.

f. Salary Expense = $4,500

g. Advertising Expense = $6,600

Explanation:

Data and Calculations:

a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000

b. Utility Expense $4,560

c. Supplies Expense $9,700 ($12,600 - $2,900)

d. Property Taxes = $7,200 *3/12 = $1,800

e. No expense is recognized for the advance payment for delivery van.

f. Salary Expense $4,500

g. Advertising Expense $6,600

4 0

2 years ago

Techniques to increase productivity in the performance of discrete tasks, by requiring less human labor in each step of the prod

goldfiish [28.3K]

I think it’s C !!!!!!!!!!!!!!!!!

7 0

2 years ago

Thompson company updates its inventory records perpetually. the company's records showed a beginning inventory of $600, cost of

Vinil7 [7]

The total inventory can be calculated by adding the initial or beginning inventory which is equal to $600 and the cost of goods sold, $1,400. That is,

T = $600 + $1,400
T = $2,000

Then, we subtract the ending inventory of $800 from the calculated value.

S = $2,000 - $800
S = $1,200

Hence, the answer to this item is the first choice.

7 0

2 years ago

Kamper Company sells two products Big Z and Little Z. Current direct material and direct labor costs are detailed below. Next ye

Andrej [43]

Answer:

Explanation:

Big Z:

(a) Direct Labor $ per Unit = 19

(b) Direct Labor $ per hour = 25

(c ) Hour per unit(a/b) = 19/25 = 0.76

(d) Units in next year = 39,000

( e) Total hours (c*d) = 0.76*39,000 = 29,640

Little Z:

(a) Direct Labor $ per Unit = 15

(b) Direct Labor $ per hour = 25

(c ) Hour per unit(a/b) = 15/25 = 0.60

(d) Units in next year = 16,000

( e) Total hours (c*d) = 0.60*16,000= 9,600

Total estimated direct labor hours for this next year = 29,640+9600 = 39,240

7 0

2 years ago