Answer:
WACC = Ke(E/V) + Kd(D/V)(1-T) + Kp(P/V)
WACC = 15(60/100) + 5(30/100)(1-0.3) + 10(10/100)
WACC = 9 + 1.05 + 1
WACC = 11.05%
Explanation:
Weighted average cost of capital is a function of cost of common stock and the proportion of common stock in the capital structure plus after-tax cost of debt and proportion of debt in the capital structure plus cost of preferred stock and the proportion of preferred stock in the capital structure. Ke = Cost of equity or common stock, kd = cost of debt and kp = cost of preferred stock.
Answer:
This case has similarities to the instances of Cesarini v. the US, 296 F.Supp. 3 (N.D. Ohio 1969), is a noteworthy case decided by the U.S. Locale Court for the Northern District of Ohio, where the court decided that treasure trove property is remembered for net salary for the assessment year when it was found.
A. TAX RESEARCH ISSUES :
1. Regardless of whether charges on the monies were due in the year the piano was bought or in the year the monies were found?
2. Regardless of whether the monies found in the piano are includable as gross income of the parties?
3. Regardless of whether offended parties are qualified for capital gains treatment?
B. Keywords:
- Monies found
- Cesarini v. United States
- Treasure
- Piano
- 26 U.S. Code § 102
- Gross Income
- Gift
Answer: D. Product costs are expensed in the period the related product is sold
Explanation:
The statement that is true with regards to product cost is that product costs are expensed in the period the related product is sold.
It should be noted that the account for the cost of goods sold consist of product cost. In a situation whereby goods are not sold, the goods will be carried to the next period.
Answer:
The option that maximizes Maggie's taste index is 1 snack bar and 2 ice creams
Explanation:
<u>snack bar</u> <u>ice cream</u>
37 grams 65 grams
120 calories 160 calories
5 grams of fat 10 grams of fat
Maggie wants to consume up to 450 calories and 25 grams of fat, but she needs at least 120 grams of dessert per day. Ice cream taste 95, snack bars 85.
- maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- 5X + 10Y ≤ 25 ⇒ CONSTRAINT 1
- 120X + 160Y ≤ 450 ⇒ CONSTRAINT 2
- 37X + 65Y ≥ 120 ⇒ CONSTRAINT 3
- X ≥ 0 ⇒ CONSTRAINT 4
- Y ≥ 0 ⇒ CONSTRAINT 5
maximum possible combinations following constraint 1, 4 AND 5:
- option 1: 1 snack bar - 2 ice creams (5 + 20 = 25)
- option 2: 2 snack bars - 1 ice cream (10 + 10 = 20)
- option 3: 3 snack bars - 1 ice cream (15 + 10 = 25)
possible combinations following constraint 2:
- option 1: 1 snack bar - 2 ice creams (120 + 320 = 440)
- option 2: 2 snack bars - 1 ice cream (240 + 160 = 400)
possible combination following constraint 3:
- option 1: 1 snack bar - 2 ice creams (37 + 130 = 167)
- option 2: 2 snack bars - 1 ice cream (74 + 65 = 139)
since we only have two possibilities, we can calculate which one generates the highest taste index
maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- option 1: 1 snack bar - 2 ice creams = [85(37) + 95(130)] / (37 + 130) = (3,145 + 12,350) / 167 = 92.78
- option 2: 2 snack bars - 1 ice cream = [85(74) + 95(65)] / (74 + 65) = (6,290 + 6,175) / 139 = 89.68
Answer:
The correct answer is option d.
Explanation:
Monopolistic competition is the market where there is a large number of firms producing differentiated products. The firms are price makers and face a downward sloping curve. There is very low or no barriers to entry and exit.
A perfect competition has a large number of firms producing identical products. These firms are price takers and face a horizontal line demand curve. There are very low or no barriers to entry and exit.
The firms in both market forms are trying to maximize profits. The market demand curve is also downward sloping in both. But the monopolistic competition produces differentiated products and firms are price makers.
