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3 years ago

Laubitz Company begins operations on Apr.1. Information from job cost sheets shows the following:

Business

1 answer:

Inessa [10]3 years ago

6 0

Answer:

1. 2. April 30 $11600

31-May $20100

2. April 30 $3,200

31-May $11,90

3. Profit April 0

May$800

June $2975

Explanation:

1) Calculation for Work in Process Inventory at

April 30 and 31-May

Work in Process Inventory at

April 30=7500+4100

Work in Process Inventory at

April 30=$11600

Work in Process Inventory at31-May =4100+6900+4700+4400

Work in Process Inventory at31-May= $20100

2) Calculation for Finished Goods Inventory at

April 30 and 31-May

Finished Goods Inventory at

April 30: $3,200

Finished Goods Inventory at 31-May =7500+4400

Finished Goods Inventory at 31-May= $11,900

3) Calculation for Gross Profit

Gross Profit April : 0

Gross Profit May =3200*25%

Gross Profit May=800

Gross ProfitJune :- Job 10 =(7500+4400)*25% Gross Profit June 2975

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Given the following information: Percent of capital structure: Preferred stock 10 % Common equity (retained earnings) 40 Debt 50

sasho [114]

Answer: 8.23%

Explanation:

Firstly, we will calculate the cost of debt which will be:

= Yield (1-Tax rate)

= 9% × (1-0.34)

= 9% × 0.66

= 5.94%

Then, the Cmcost of preferred stock will be:

= 7/(104-9.40)

= 7/(94.6)

= 7.39%

We will also get the value of the cost of equity which will be:

= (Dividend expected common/Price common) + growth rate

= (2.50/76) + 8%

= 3.29% + 8%

= 11.29%

For Debt:

Cost after tax: 5.94

Weight = 50%

Weighted cost = 5.94 × 50% = 2.97

For Preferred stock:

Cost after tax: 7.39

Weight = 1%

Weighted cost = 7.39 × 10% = 0.74

For Common equity

Cost after tax: 11.29

Weight = 40%

Weighted cost = 11.29 × 40% = 4.52

Weighted average cost of capital = 2.97 + 0.74 + 4.52 = 8.23%

8 0

3 years ago

Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company woul

ad-work [718]

Answer:

1) 0.8333

2) 16,666

3) 2.33

4) 56.40

5) 2.2

Explanation:

Share Exchange Ratio = Price per share for Target Company / Market price per share for Acquiring Company = $50 / $60 = 0.8333

New shares issued by Acquiring Company = Shares of Target Company x Exchange ratio (20,000 x 0.8333) = 16,666

Total shares outstanding of the combined companies = 60,000 + 16,666 = 76,666

Post-merger EPS of the combined companies = ($150,000 + $30,000)/ 76,666 = $2.35

Pre-merger EPS of Acquiring Company = $150,000 / 60,000 = $2.50

Post-merger share price = $2.35 x 24 (pre-merger P/E = $60.00/$2.50) = $56.40

Purchase price = 50 * 20,000 = 1,000,000

Interest expense = 1,000,000 * 8% = 80,000

Post-merger earnings = 150,000 + 30,000 – 80,000 * (1-0.4) = 132,000

Therefore, Post-merger EPS of the combined companies = 132,000/60,000 = 2.2

6 0

3 years ago

Brian is a 25% partner in the BC Partnership. On January 1, BC distributes $20,000 cash and land with a $16,000 fair value (insi

pentagon [3]

Answer:

The amount is $4,000 and Brain character reflects the capital gain.

Explanation:

Partnership: In partnership, there are two or more partners who are ready to share the profit or losses in their profit-loss sharing ratio.

The computation is shown below:

= Brain's basis - the inside basis

= $16,000 - ($20,000 - $8,000)

Since the brain basis show excess amount than inside basis which reflects the capital gain .

The inside basis is not relevant in the computation part. Hence, it is ignored.

6 0

3 years ago

Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes

larisa [96]

Answer:

D) She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.

Explanation:

Noelle is someone that is an average performer, so she will be open to doing mundane tasks since she is not overly worried about having a star performance.

She is also some one that spends more time than she should socializing with friends in other departments.

So she would be more prone to buying birthday cards for co-workers and organizing parties.

Noelle is an average performer with good social skills so she will be one that does not prioritise performing better than others

6 0

3 years ago

Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change

Valentin [98]

Answer:

Cost of equity = 10.9%

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em><em> </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

D0× (1+g)/Po × (1-F) + g

Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %

DATA:

D0- 3.68

g- 5%

P=67

K- ?

Po×(1-F)= 67-3.68=$63.32

Ke = 3.68× 1.05/ 63.32 + 0.05 =0.109

Cost of equity = 0.109× 100= 10.9%

Cost of equity = 10.9%

7 0

3 years ago