Answer:
4.96%
Explanation:
In order to determine the component after-tax cost of debt first we need to compute the before tax cost of debt by applying the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $1,155
Future value or Face value = $1,000
PMT = 1,000 × 8.25% ÷ 2 = $41.25
NPER = 40 years × 2 = 80 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
1. The pretax cost of debt is 3.54% × 2 = 7.08%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.08% × ( 1 - 0.30)
= 4.96%
Answer:
17.19 years
Explanation:
The triple value of the earnings per share=$3.50*3=$10.50
The growth rate is 6.6%
Using the nper formula in excel, we can determine the number of years earnings per share would triple
=nper(rate,pmt,-pv,fv)
rate is 6.6%
pmt is not applicable to the scenario ,hence it is zero
pv is the current earnings per share
fv is the future earnings per share
=nper(6.6%,0,-3.5,10.5)= 17.19
Answer:
B. 14
Explanation:
ES = early start
ES = finished point of the predecessor activity
Considering we have two activities which are:
5-7 which is expected to start at 6 and finish in 5 thus It will end at 11
6-7 which is expected to start at 7 and has a duration of 7 thus, ending at 14
The 7-8 activity will start as soon as the precedecessor end. These activities are finished at point 14 thus, that is the earliest activity 7-8 can start.
Answer:
$2040
Explanation:
FIFO under the perpetual inventory system is one in which the sale or purchase of inventory is immediately updated in the inventory account such that the true position of inventory available per time is known.
FIFO is first in first out which means that inventory purchased first are sold first.
Given;
Units Unit Cost Total Cost Units Sold
Beginning Inventory 30 $28 $ 840
Sale No. 1 20
Purchase No. 1 50 $40 $2,000
Sale No. 2 40
Purchase No. 2 20 $44 $880
Totals 100 $3,720 60
Cost of goods sold = $28 * 20 + $28 * 10 + $40 * 30
= $560 + $280 + $1200
= $2040
Answer:
Controllable margin =$125,000
Return on investment = 20%
Explanation:
<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>
Controllable margin - Sales revenue - variable cost - controllable fixed cost
Controllable margin= $500,000 - $300,000 - 75,000 = $125,000
Controllable margin =$125,000
Return on investment = (controllable margin/ Average investment) × 100
= (125,000/625,000) × 100 = 20%
Return on investment = 20%
