What system is based on the supply and demand of goods to make a profit?.

Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,

Ratling [72]

Answer:

B) 9.1%

Explanation:

Cost of debt is the interest rate paid by a company due to borrowing money; i.e debt from investors.

$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;

First, find pretax cost of debt ;

Pretax cost of debt = (Interest expense / Face value of debt )*100

= (26,000,000/ 185,000,000 )*100

=0.1405 *100

= 14.05%

Next, use pretax cost of debt to find after-tax cost of debt;

After-tax cost of debt = Pretax cost of debt (1-tax)

= 14.05% *(1-0.35)

= 9.13%

Therefore, Westford's cost of debt capital is 9.1%

6 0

3 years ago

Your aunt is thinking about opening a hardware store. She estimates that it would cost $400,000 per year to rent the location an

Solnce55 [7]

Answer:

(B) What must be given up to acquire it

Explanation:

Opportunity cost, in a simple language, means trade-off or an income or savings that we need to forego.

It is the amount or value of a certain event or activity that must be given off due to choosing one alternative over another.

In this case, the salary of $50,000 per year is the opportunity cost.

8 0

3 years ago

A formulator does all of the following except? A) finds solutions for problems. B) thinks outside-the-box C) figures out specifi

jeka57 [31]

The answer for this question is D

6 0

3 years ago

Read 2 more answers

You are appraising a three-year-old, single-family residence. The total square footage of the livable area is 2,050. The garage

dusya [7]

Answer:

$ 124,600

Explanation:

Given data:

Total livable area = 2,50 square foot

Area of the garage = 500 square foot

Base construction cost for livable area = $ 52 per square foot

Base construction cost for garage = $ 36 per square foot

Thus,

the cost for construction of total livable area = Area × per unit area construction cost

or

the cost for construction of total livable area = 2,050 × $ 52 = $ 106,600

and

cost for construction of total garage area = 500 × $ 36 = $ 18,000

hence,

the total cost for the reproduction of the new structure

= $ 106,600 + $ 18,000

or

= $ 124,600

5 0

3 years ago

Zahn Industries uses process costing system. During October, the finishing department had 30,000 units in beginning work-in-proc

disa [49]

Answer:

The equivalent units of production for materials and conversion costs are 98,000 units each

Explanation:

For computing the equivalent units of production for materials and conversion costs first, we have to compute the units started and completed units which is shown below:

= Beginning work-in-process inventory units + transferred units - ending work-in-process inventory units

= 30,000 units + 95,000 units - 45,000 units

= 80,000 units

Now the equivalent units of production would be

For material costs:

= (Units started and completed units × completed percentage) + (ending inventory units × completed percentage)

= (80,000 units × 100%) + (45,000 units × 40%)

= 80,000 units + 18,000 units

= 98,000 units

For conversion costs:

= (Units started and completed units × completed percentage) + (ending inventory units × completed percentage)

= (80,000 units × 100%) + (45,000 units × 40%)

= 80,000 units + 18,000 units

= 98,000 units

5 0

3 years ago