Answer:
$4,870.5
Explanation:
Annual Depreciation Expense:
= [(Cost - Salvage Value) × Machine Usage in 2020] ÷ Total Estimated Working Hours
Depreciation Expense for 2020 (for 3 months only - October to December):
= [($115,900 - $13,900) × 1,910] ÷ (10,000) × (3/12)
= ($102,000 × 1,910) ÷ (10,000) × (1/4)
= $19,482 × (1/4)
= $4,870.5
Notes:
Depreciation will be calculated for only 3 months since the asset has been acquired on 1st October 2020.
Neither a favorable nor an unfavorable balance of trade with Jamaica.
I would say the most common type of paid medium is C, a newspaper.
This is due to the fact that you can subscribe to your local newspaper for a fixed amount of money monthly or yearly. It also includes advertising, ads, and branded content for business looking to get profit and growth.
Answer:
$4,697.04
Explanation:
In simple words , this question requires us to find the Future Value in 5 years time. We compound the Present Value using the effective interest rate to determine the Future Value of an investment.
<em>PV = $3,000.00</em>
<em>P/YR = 12</em>
<em>N = 5 x 12 = 60</em>
<em>I = 9 %</em>
<em>PMT = $0</em>
<em>FV = ?</em>
Using a Financial calculator to enter the parameters as above the Future Value (FV) is $4,697.04
therefore,
In 5 years time, you will have $4,697.04.
Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%