Answer:
WACC 8.53600%
Explanation:
The Weighted average cost of capita lconsiders the weight of the equity times the cost of it.
And the wight of the dbet times the cost of financing after the tax shield.
Ke 0.11000
Equity weight 0.65
Kd 0.06
Debt Weight 0.35
t 0.34
WACC 8.53600%
Answer:
$1,680,000
Explanation:
Based on the information given we were told that the fair value of the building was the amount of $1,680,000 which means that the amount that the company would record the building is the fair value amount of $1,680,000.
Therefore the amount that the company would record the building is $1,680,000.
Answer:
1. $425,000
2. 10.78%
3. 1.25
4. 13.5%
Explanation:
The computations are shown below:
1. For Average Operating Assets
Average operating assets = (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= ($390,000 + $460,000) ÷ 2
= $425,000
2. For margin
Margin = Operating Income ÷ Sales × 100
= $57,250 ÷ $531,250 × 100
= 10.78%
3. For turnover:
Turnover = Sales ÷ Average Operating Assets
= $531,250 ÷ $425,000
= 1.25
4. For Return on investment:
Return on investment = Operating Income ÷ Average Operating Assets
= $57,250 ÷ $425,000
= 13.5%
Answer:
Itis better to take the case in hand of 207,000,000 millions
Explanation:
We need to calcualte the present value of a geometric annuity-due
g 0.05
r 0.04
C 4,515,432
n 26
n 26
127,557,727.45
As is an annuity due, we multiply by (1+r)
127,557,727.45 x (1+0.04) = 132,660,036,548
The present value of the 207,000,000 option is better as the annuity present value is around 130,000,000