Answer:
d. $73,778.50
Explanation:
Variable Cost = $11.07 per unit x 5,150 units = $57,010.50
Total Cost = $130,789
Fixed Cost = Total Cost - Variable Cost
Fixed Cost = $130,789 - $57,010.50
Fixed Cost = $73,778.50
Since Depreciation is the Fixed Cost and we have been given the Total Cost of the Project, so the Depreciation is already included in the Fixed Cost.
Hence Total Fixed Cost is equal to $73,778.50.
Answer: $690,044
Explanation:
First calculate WACC.
Total capital = 10 + 8 = $18 million
WACC = (Weight of debt * after-tax cost of debt) + (weight of equity * cost of equity)
= (8/18 * 3%) + (10/18 * 15%)
= 9.67%
Using the WACC, find the present value of the cashflows for the next 5 years. This will be an annuity.
= 180,500 * (1 - (1 + r) ^-n)/r
= 180,500 * ( 1 - ( 1 + 9.67%) ^ -5)/9.67%
= $690,044.67
= $690,044
They should pay no more than this present value.
Answer:
8.57%
Explanation:
value of debt = $1,000 x 9,200 x 1.045 = $9,614,000
YTM = {32 + [($1,000 - $1,045)/46]} / [($1,000 + $1,045)/2] = 31.02/ 1,022.50 = 3.034% x 2 = 6.07%
value of common stock = 235,000 x $64.70 = $15,204,500
Re = 3.7% + 0.92(11.8% - 3.7%) = 11.15%
value of preferred stocks = 8,200 x $94.20 = $772,440
cost of preferred stocks = 4.6 / 94.2 = 5.46%
total value = $25,590,940
common stocks = 0.594
debt = 0.376
preferred stocks = 0.03
WACC = (0.594 x 11.15%) + (0.03 x 5.46%) + (0.376 x 6.07% x 0.78) = 6.6231% + 0.1638% + 1.78% = 8.57%
Answer:
option a) 5 billion
Explanation:
Data provided in the question:
GDP = $20 billion
Cost of goods and services = $3 billion
Tax collected = $6 billion
Transfer payments to households = $2 billion
Private saving in Growpaw = $4 billion
Now,
Disposable income = GDP - taxes + transfer payments
=$20 billion - $6 billion + $2 billion
= $16 billion
Consumption = Disposable income - Savings
= $16 billion - $4 billion
= $12 billion
Thus,
Investment = GDP - consumption - government purchases
= $20 billion - $12 billion - $3 billion
= $5 billion
Hence,
the correct answer is option a) 5 billion
Answer:
True.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
Thus, it is a field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
An account can be defined as a formal and individual record of the financial transactions of a person, business firm, goods, assets, liability, etc.
All the transactions with respect to a particular item such as income, expenses, assets, liability, etc., are recorded in its account.
In general, accounts are split or divided into two main categories and these includes;
I. Personal Accounts
II. Impersonal Accounts.
