Answer:
$1,369,200
Explanation:
Calculation for EBIT
Using this formula
Value of Equity= EBIT / WACC
Let plug in the formula
$16,300,000 = EBIT / .084
EBIT = .084($16,300,000)
EBIT = $1,369,200
Therefore EBIT is $1,369,200
I would choose D. By outsourcing certain processes to small businesses
Answer:
c. $3,200 favorable.
Explanation:
We know that
Total controllable cost variance = Budgeted overhead cost - actual overhead cost
where,
Budgeted overhead cost = Variable overhead + Fixed overhead
where,
Variable overhead = 40,000 units × $2 = $80,000
And, the fixed overhead = $72,000
So, the budgeted overhead = $152,000
And, the actual one is $148,800
So, the total controllable cost variance would be
= $152,000 - $148,800
= $3,200 favorable
Answer:
There's an error in the numbers for this question; I found the correct one and pasted it below;
"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "
Explanation:
Use dividend discount model (DDM) to calculate the stock price
whereby,
P0 = Current price
D0 = Last dividend paid = 130
g = growth rate = -275% or -2.75 as a decimal
r = required return = 155% or 1.55 as a decimal
Next, plug in the numbers to the DDM formula above;
Therefore this stock is worth $6.93
Answer:
$272,000
Explanation:
Accumulated depreciation is the sum of depreciation expense.
Depreciation is a method of expensing the cost of an asset.
Depreciation expense using the straight line depreciation method = (Cost of asset - Salvage value) / useful life
($700,000 - $20,000) / 5 = $136,000
The straight line depreciation method Deprecation allocates the same deprecation expense each year of the useful life of an asset.
The depreciation expense in 2019 and 2020 would be $136,000 x 2 = $272,000
I hope my answer helps you
