Answer:
No, I don't because they put in a lot of hard work.
Explanation:
Answer:
$86.20
Explanation:
Total return from stock = Current price * expected return
Total return from stock = 80*14%
Total return from stock = $11.20
Dividend already realized = $5
Capital gain = $11.20 - $5
Capital gain = $6.20
End of one year price = Beginning price + capital gain
End of one year price = $80 + $6.20
End of one year price = $86.20
Therefore, at the end of one year price is $86.20
Answer:
The predetermined manufacturing overhead rate per direct labor hour will be $32
Explanation:
The formula to compute the predetermined manufacturing overhead rate is shown below:
= (Estimated manufacturing overhead) ÷ (Estimated direct labor hours)
where,
Estimated manufacturing overhead = Wages of factory janitors + Utilities for factory + Rent on factory building
= $39,900 + $17,000 + $13,900
= $70,800
And, the estimated direct labor hours is 2,200 machine hours
Now put these values to the above formula
So, the value would equal to
= $70,800 ÷ 2,200 machine hours
= $32.18
Answer:
$11,761.10
Explanation:
For computing the net present value first we have to determine the weighted average cost of capital which is shown below:
WACC = Cost of debt × weighted of debt × (1 - tax rate) + cost of equity × weighted of debt
= 11% × 0.6 ÷ 1.6 × (1 - 0.34) + 13% × 1 ÷ 1.6
= 2.72% + 8.13
= 10.85%
The 1.6 is come from
= 1 + 0.6
= 1.6
The debt equity is 0.6 i.e 0.6 is for debt and equity is 1
Now the net present value is
= Present value of annual year cash flows - initial investment
where,
Present value of annual year cash flows
= Annual year cash inflows × PVIFA factor for 10.85% at 2 years
= $29,000 × 1.7159
= $49,761.10
And, the initial investment is $38,000
So, the net present value is
= $49,761.10 - $38,000
= $11,761.10