<span>Answer:
At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole.
units
At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole.
Old plan units
New plan with debt financing units
New plan with stock financing units
On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places.
EPSDebt = $
EPSStock = $</span>
Answer:
b. conscientiousness
Explanation: hope it rite
Answer:
$124,486.51
Explanation:
Mineral mine acquisition cost = Total cash paid - Land cost = $680,200 - $84,000 = $596,200
Depletable value of the mineral mine = $596,200 + $42,000 - $17,000 = $621,200
The total amount of depletion for 2017 = (1,010,000/5,040,000) * $621,200 = $124,486.51
Answer:
Beginning units are 6,000
Desired ending units are 10,000
Explanation:
The required production unit + beginning FG units would be equal to the ending FG units + expected unit sales
Beg FG + 104,000 = End FG +100,000
6,000 + 104,000= 10,000 + 100,000
110,000 = 110,000.
Beg FG = 6,000
End FG = 10,000
I’d say it’s the 4th one.