Answer:
The correct answer is letter "E": cost of debt.
Explanation:
The cost of debt is the interest a company pays on its borrowings. It is expressed as a percentage rate. Also, the cost of debt can be calculated as a before-tax rate or an after-tax rate. Before interest is deductible for income taxes, the cost of debt is usually expressed as an after-tax rate.
Answer:
The IRR (in %) for Project A is 31%.
Explanation:
Let IRR be x%
At IRR, present value of inflows = present value of outflows.
218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4
solving for x, we find:
x = 31%
Therefore, The IRR (in %) for Project A is 31%.
Answer:
Best estimate of the current stock price= $42.64
Explanation:
Price of the stock today = 
.
where P2 = 
D0=$1.75
D1=$1.75(1.25)
D2=$1.75(1.25)(1.25)
D3=$1.75(1.25)(1.25)(1.06)
Price of the stock today = 
. = $42.64
Answer:
$1,375
Explanation:
Given the information above, the Ending inventory = Units available - Units sold
Units available = 10 + 25 + 30 + 70 = 80
Units sold = 60
Ending inventory = 80 - 60
Ending inventory = 20
Cost of ending inventory under FIFO
= (15 × $70) + (20 - 15) × $65
= $1,050 + $325
= $1,375
Therefore, the ending inventory cost using FIFO is $1,375
Answer:
12,600
Explanation:
Concept of Equivalent units of production measures the number of units in terms of percentage completion in input elements of the process.
<u>The equivalent units of production for materials</u>
Note : all materials are issued at the beginning of the process, therefore materials are 100% complete in both Widgets transferred out and Ending widgets.
Calculation :
transferred out (8,600 × 100%) = 8,600
ending inventory (4,000 × 100%) = 4,000
total = 12,600
Therefore, the equivalent units of production for materials in the Machining Department is 12,600.
