A company issued 6,000 shares of stock at $10 each, with a par value of $2.

Memorial Hospital CEO conducts performance reviews of the hospital's departments and discovered that the average cost of deliver

lora16 [44]

Answer:

Memorial Hospital

From the information on how much the hospital is losing on deliveries, the change in profit for each extra delivery is:

= 16.3%.

Explanation:

a) Data and Calculations:

Average cost of deliveries = $5,000

Average revenue per delivery = $4,300 ($5,000 - $700)

Loss on each delivery = $700

The change in profit for each extra delivery is

= 16.3% ($700/$4,300 * 100)

b) The implication of the above information is that the hospital is losing 16.3% each time it performs a delivery because it cost it $5,000 while it can only receive $4,300 from each patient delivered.

4 0

2 years ago

Avicorp has a $15.5 million debt issue outstanding, with a 6.3% coupon rate. The debt has semi-annual coupons, the next coupon i

Studentka2010 [4]

Answer:

a) Pre-tax cost of debt is 8.45%

b) After tax cost of debt is 5.07%

Explanation:

a) Given:

Debt issue outstanding = $15.5 million

Semi-annual coupon rate = 0.063 / 2 = 0.0315

Assumed par value (FV) = $1,000

Coupon payment (pmt) = 0.0315 × 1000 = $31.5

Current bond price (PV) = 92% of $1,000 = $920

Time period (nper) = 5 × 2 = 10 periods

Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)

Semi-annual rate = 4.14%

Pmt and FV are negative as they are cash outflows.

YTM = 4.14 × 2 = 8.28%

Effective annual rate = $(1+\frac{Rate}{compounding\ periods}) ^{2} -1$

= $(1+\frac{0.0828}{2}) ^{2} -1$

= 0.0845 or 8.45%

b) Tax rate is 40%

After tax cost of debt = Pre tax cost of debt × (1 - 0.4)

= 0.0845 × 0.6

= 0.0507 or 5.07%

4 0

2 years ago

The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beg

maksim [4K]

Answer:

$ 168,000

Explanation:

Include both Mark-ups and Mark-Downs and Exclude beginning inventory

When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates

the Previous year Ending inventory :

Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail

For Current year Addition :

Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail

Current year addition in retail includes : Markup ,Markdown purchases

Kindly check the attached images below to see the step by step explanation to the question above.

5 0

3 years ago

Assume the following sales data for a company:

ella [17]

Answer:

b. 30%

Explanation:

The computation of the percentage increased in sales from the previous year to the current year is shown below:

= (Current year Sale - Preceding year Sale) ÷ (Preceding year Sale )

= ($325,000 - $250,000) ÷ ($250,000)

= ($75,000) ÷ ($250,000)

= 30%

Hence, the correct option is b. 30%

We simply applied the above formula to determine the percentage increased in sales

5 0

2 years ago

The correctly calculated weighted average cost of capital for a firm can be used to discount the cash flows for any new project

mina [271]

I can't help you unless you give me more Information

4 0

3 years ago