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Rom4ik [11]
3 years ago
10

A Birmingham, Alabama, foundries produces cast-iron ingots according to a 3-month capacity plan. The cost of labor averages $100

per regular shift hour and $140 per overtime (O.T.) hour. Inventory carrying cost is thought to be $4 per labor-hour of inventory carried. There are 50 direct labor-hours of inventory left over from March. For the next 3 months demand and capacity (in labor-hours) are as Month Regular labor (hours) O.T. Labor (hours) Demand APR 2880 355 3000 MAY 2780 315 2750 JUN 2760 305 2950 Develop an aggregate plan for the 3-month period using the transportation method. a. What is the overall cost of this plan
Business
1 answer:
RUDIKE [14]3 years ago
5 0
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Global Technology’s capital structure is as follows: Debt 50 % Preferred stock 35 Common equity 15 The aftertax cost of debt is
solmaris [256]

Answer:

The computation is shown below:

Explanation:

The computation is shown below:

For weighted cost of each source of capital is

Debt:

= Cost of debt × Weight of debt

= 9% × 50%

= 4.5%

Equity

= Cost of equity × weight of equity

= 16% × 0.15

= 2.4%

Preferred stock

= Cost of preferred stock × weight of preferred stock

= 12.50% × 35%

= 4.375%

Now the weighted average cost of capital is

= 4.5% + 2.4% + 4.375%

= 11.275%

Therefore in the first part we multiplied the cost with the weight of each source of capital

And, then we add the all answers

8 0
4 years ago
Matt inherited as a trust a fifteen-year annuity-immediate with annual payments. He has been told that the annuity payments earn
Pavel [41]

Answer:

effective annual interest rate = 6.32%

annual payment = $1,585

Explanation:

I believe that this is an ordinary annuity, so we can use the future and present value of an ordinary annuity formula:

FV = annual payment x FV annuity factor, so annual payment = FV / FV annuity factor

PV = annual payment x PV annuity factor, so annual payment = PV / PV annuity factor

we can equal both equations:

PV / PV annuity factor = FV / FV annuity factor

FV / PV = FV annuity factor / PV annuity factor

$37,804.39 / $15,077.10 = FV annuity factor / PV annuity factor

2.5074 = FV annuity factor / PV annuity factor

the easiest way to solve this is to use an annuity table since we already know that there are 15 periods (I used an excel spreadsheet):

%,15 periods      FV annuity factor     PV annuity factor        FV/PV

1                                 16.097                   13.865                      1.1609

2                                17.293                   12.849                      1.34586

3                                18.599                    11.938                      1.55797

4                               20.024                     11.118                       1.80104

5                                21.579                   10.380                      2.07890

<u>6                               23.276                   9.7122                       2.3966</u>

<u>7                                25.129                   9.1079                       2.7590</u>

8                                27.152                   8.5595                       3.1721

9                                29.361                   8.0607                      3.6425

10                               31.772                   7.6061                         4.4112

The interest rate must be between 6 and 7%:

%,15 periods      FV annuity factor     PV annuity factor        FV/PV

6                               23.276                   9.7122                       2.3966

6.1                             23.45404              9.6461                       2.43145

6.2                            23.63369              9.5858                      2.46549

6.3                            23.81491               9.52467                     2.50034

6.31                           23.83312               9.51851                     2.50387

<u>6.32                          23.85135               9.51236                     2.5074</u>

6.4                            23.99773              9.46337                     2.53585

effective interest rate = 6.32% per year

annual payment = $37,804.39 / 23.85135 = $1,585

           

6 0
3 years ago
OSHA standards appear in the ___________ and are then broken down into ____________. A. Code of Federal Regulations (CFR), Parts
antiseptic1488 [7]

ignore the other person, the correct answer is A. code of Federal Regulations (CFR), parts

3 0
3 years ago
The Inferior Goods Co. stock is expected to earn 13% in a recession, 7% in a normal economy, and lose 6% in a booming economy. T
Natalka [10]

Answer:

Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%

Explanation:

Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.

Item                  Prob Earn

Booming           20% -6%

Normal           55% 7%

Recession   25% 13%

Ok, now let´s calculate the expected rate of return.

ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)

ExpectedReturn=-0.012+0.039+0.033=0.059

So the expected rate of return of the stock is 5.90%

Best of luck.

8 0
3 years ago
Which careers are apart of the Finance career cluster?
elena-s [515]

Answer:

D, most likely

Explanation:

3 0
3 years ago
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