Answer:
The correct answer is: inputs such as wages and salaries to its employees, whereas implicit costs are non-expenditure costs that occur through the use of self owned resources such as foregone income.
Explanation:
The implicit costs.
Also known as opportunity costs have to do with alternative earning options, or money that we no longer receive when performing certain commercial actions.
A company incurs implicit costs when it waives an alternative action but does not make a payment. Implicit costs of a company are:
- The use of the company's own capital (money or assets).
- The use of money, assets and financial resources of the owner.
Explicit costs. They are what we usually see and are easy to identify. Even if they can present some complication for their determination, it is possible to identify them thanks to the business operation itself.
Explicit costs are paid with money. In a food company the costs recorded by the company accountant are the explicit costs, for which the company disburses cash, such as wages and salaries, truck maintenance, tolls, service payments, and so on.
Answer:
$3.344,67
Explanation:
Investment A( Simple interest) = Cf= Ci x(1+(ixn)) = $10.000 x(1+0,0775*10)=
$17.750
Investment B (Compound interest)= Cf= Ci x(1+i)^n = $10.000 (1+0,0775)^10=
$ 21.094,67
A - B = $17.750 - 21.094,67 = - $3.344,67
Answer:
C) $ 80,000 $ 70,000
Explanation:
R = ($48,000/$120,000) x $200,000
=0.4×$200,000
= $80,000
S = $200,000-$50,000-$80,000
= $70,000
Therefore the sales value at split-off for products R is $80,000 and S $70,000
Answer:
The cash flow to stockholders amounts to $45
Explanation:
Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.
The cash flow to stockholders is computed as:
Cash flow to stockholders = Dividend paid - New equity raised
where
Dividend paid is computed as:
Dividend paid = Net Income × %
= $360 × 35%
= $126
New equity raised is $81
So, putting the values above:
Cash flow to stockholders = $126 - $81
Cash flow to stockholders = $45
Answer:
a)
Cost of debt (after tax) = 5.4%
Cost of preferred stock (
) = 10.53%
Cost of common stock (
) = 16.18%
b)
WACC = 14%
c)
project 1 and project 2
Explanation:
Given that:
Debt rate (
) = 9% = 0.09
Tax rate (T) = 40% = 0.4
Dividend per share (
) = $6
Price per share (
) = $57
Common stock price (
)= $39
Expected dividend (
) = $4.75
Growth rate (g) = 4% = 0.04
The target capital structure consists of 75% common stock (
), 15% debt (
), and 10% preferred stock (
)
a)
Cost of debt (after tax) =`
Cost of debt (after tax) = 5.4%
Cost of preferred stock () = 
= 10.53%
= 10.53%
Cost of common stock () = 
= 16.18%
b)
WACC = 14%
c) Only projects with expected returns that exceed WACC will be accepted. Therefore only project 1 and project 2 would be accepted
