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3 years ago

A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the

Business

1 answer:

Artemon [7]3 years ago

4 0

Answer:

+$183,000

Explanation:

Total assets increased by ($298,000 - $115,000) $183,000.

Total liabilities has no change

Total shareholder equity increased by ($298,000 - $115,000) $183,000.

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Quiz during the class. Calculate the WACC which represents the "hurdle rate" for a typical project with average risk using midpo

aleksklad [387]

Answer:

a.Year Cashflow [email protected]% PV [email protected]% PV

$ $ $

0 (1,000) 1 (1,000) 1 (1,000)

1-15 72 11.1184 800 7.6061 548

15 1,000 0.5553 555.3 0.2394 239

NPV 355.3 NPV 213

Kd = LR + NPV1/NPV1 + NPV2 x (HR – LR)

Kd = 4 + 355.3/355.3 + 218 x (10 – 4)

Kd = 4 + 355.3/573.3 x 6

Kd = 7.72%

b. Kp = D/Po

Kp = $100/$1,111

Kp = 0.09 = 9%

c. Ke = D1/Po (1 – FC) + g

Ke = $4.3995/$50(1-0.15) + 0.05

Ke = $4.3995/$42.50 + 0.05

Ke = 0.1535 = 15.35%

WACC = Wdrd(1 – T) + Wprp + Were

WACC = 0.3(7.72)(1-0.4) + 0.1(9) + 0.6(15.35)

WACC = 1.39 + 0.9 + 9.15

WACC = 11.44%

Explanation:

In this case, we need to calculate cost of debt, cost of preference shares and cost of equity. Cost of debt is calculated based on internal rate of return. Cost of preferred stock is the ratio of dividend paid to the market price. Cost of equity is a function of D1 divided by current market price after floatation cost plus growth rate. WACC is equal to cost of each source multiplied by respective weights.

3 0

3 years ago

which of the following is not an economic goal of leaders of most nations? a. efficiency b. price stability c. growth d. full em

Darina [25.2K]

One thing that is not the economic goal of most nations is e. excess goods and services.

<h3>What economic goals do most countries want?</h3>

Most countries want to be able to provide their people with an adequate living standard.

For this to happen, the economy needs to be growing and have price stability as well as full employment. There is no need for excess goods and services because this represents a waste of resources.

Find out more on economic goals at brainly.com/question/3140788.

#SPJ11

4 0

1 year ago

What is the base of Selection Process?

AlladinOne [14]

Answer:b

Explanation:

Because

6 0

3 years ago

The last four years of returns for a stock are as follows: Year 1 2 3 4 Return −4.5% 28.1% 12.2% 3.7% a. What is the averag

jeyben [28]

Answer:

a. What is the average annual return?

average annual return (mean) = (-4.5% + 28.1% + 12.2% + 3.7%) / 4 = 9.875%

b. What is the variance of the stock's returns?

variance = [(-4.5% - 9.875%)² + (28.1% - 9.875%)² + (12.2% - 9.875%)²) + (3.7% - 9.875%)²] / 4 = (206.64 + 332.15 + 5.41 + 38.13) / 4 = 582.33 / 4 = 145.5825

c. What is the standard deviation of the stock's returns?

standard deviation = √145.5825 = 12.06%

4 0

3 years ago

Each business day, on average, a company writes checks totaling $13,200 to pay its suppliers. The usual clearing time for the ch

MrMuchimi

Answer:

A. Disbursement Float $53,800

Collection Float $47,600

Net Float $6,200

B. Disbursement Float $53,800

Collection Float $23,800

Net Float $30,000

Explanation:

A. Calculation for the company’s disbursement float, collection float, and net float.

Calculation for Disbursement Float using this formula

Disbursement Float = Average amount of check* Time to clear

Let plug in the formula

Disbursement Float= $13,200*4 days

Disbursement Float= $53,800

Calculation for Collection Float

Collection Float =($23,800*2days)

Collection Float = $47,600

Calculation for Net Float using this formula

Net Float = Disbursement Float + collection Float

Let plug in the formula

Net Float= $53,800-$47,600

Net Float= $6,200

Therefore the company’s disbursement float, collection float, and net float will be:

Disbursement Float $53,800

Collection Float $47,600

Net Float $6,200

B.Calculation to determine what would be the company's disbursement float, collection float, and net float If the collected funds were available in one day instead of two

Calculation for Disbursement Float using this formula

Disbursement Float = Average amount of check* Time to clear

Let plug in the formula

Disbursement Float= $13,200*4 days

Disbursement Float= $53,800

Calculation for Collection Float

Collection Float =($23,800*1 days)

Collection Float = $23,800

Calculation for Net Float using this formula

Net Float = Disbursement Float + collection Float

Let plug in the formula

Net Float= $53,800-$23,800

Net Float= $30,000

Therefore what would be the company's disbursement float, collection float, and net float If the collected funds were available in one day instead of two will be:

Disbursement Float $53,800

Collection Float $23,800

Net Float $30,000

7 0

2 years ago