Answer:
0.147 or 14.7%
Explanation:
Equity (E) =$7
Debt (D) = $1
Cost of equity capital (Ce) = 0.16
Pretax cost of debt (Cd) = 0.08
Tax rate (r) = 0.3
The weighted average cost of capital of the firm is given by the following relationship:
The weighted average cost of capital of the firm is 0.147 or 14.7%.
Answer:
Predetermined manufacturing overhead rate= $33.1 per direct labor hour
Explanation:
Giving the following information:
Salary of factory supervisor $37,800
Heating and lighting costs for factory $22,900
Depreciation on factory equipment $5500
The company estimates that 2000 direct labor hours will be worked in the upcoming year.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (37,800 + 22,900 + 5,500) / 2,000
Predetermined manufacturing overhead rate= $33.1 per direct labor hour
Answer:
D
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A public good is a good that is non excludable and non rivalrous. An example of a public good is a statue in a public park Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue
Answer:
Predetermined manufacturing overhead rate= $6.875 per machine-hour
Explanation:
Giving the following information:
The estimated manufacturing overhead costs are $275,000 and an estimated 40,000 machine hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 275,000/40,000
Predetermined manufacturing overhead rate= $6.875 per machine-hour
Answer:
The amount in the account on the 18th birthday = $ 25,645.41
Explanation:
<em>The investment can be described as an ordinary annuity. An ordinary annuity is a series of equal periodic cash flows that occur for a certain number of years</em>
<em>The amount the invest will accrue principal plus interest is known as the f</em><u><em>uture value</em></u><em> of the annuity</em>
It is determined as follows:
<em>FV = A × ( (1+r)^n -1 ) / r</em>
FV - ?, A = 1000. r - 4%- 0.04, n - 18
FV = 1,000× ( ( (1.04)^(18) - 1 )/ 0.04
= 1,000 × 25.64541288
= $ 25,645.41
The amount in the account on the 18th birthday = $ 25,645.41
