Answer: $58,223.60
Explanation:
The Modified Accelerated Cost Recovery System (MACRS) is the depreciation method being used currently in the United States to depreciate assets for tax purposes. The asset is depreciated over a certain period of time depending on the Assets class.
The equipment in this scenario is a 7-year property and is subject to the rates listed. The fifth year depreciation therefore is;
= 652,000 * 8.93%
= $58,223.60
Answer: Sunk cost
Explanation:
Sunk cost is a cost that is incurred by an entity, which can not be recover. When making the decision on whether to continue investing in a project which is ongoing, the sunk costs should not be considered since these type of costs can't be recovered.
Sunk costs cannot be recovered or refunded. The 10 percent discussed in the question is a sunk cost as it can't be recovered.
Answer:
Mace's average collection period is 88 days
Explanation:
Credit terms is "Net 60" which means the customer will naturally pay within 60 days. Further it is given that account average 28 days overdue. This means it takes 28 more days to collect the amount of receivables. Therefore the average collection period comes to
60 + 28 = 88 days.
Answer:
so cost of capital = 9.9 %
correct option is a 9.9%
Explanation:
given data
capital structure = 40%
common equity = 60%
tax rate = 34%
pretax cost = 8.5%
pretax cost = 10%
market price = $59
Flotation costs = $3 per share
common stock dividend = $3.15
Dividends expected to grow = 7%
to find out
cost of capital if the firm uses bank loans and retained earnings
solution
cost of retained earning = 
+ growth rate ........................1
cost of retained earning = 
+ 0.07
cost of retained earning =0.1271271186
and
cost of capital will be
cost of capital = weight for debit × ( cost of debit × ( 1 - tax rate ) ) + weight for common stock × cost of common stock
cost of capital = 0.40 × ( 8.5% × ( 1 - 0.34 ) ) + 0.60 × 0.1271271186
cost of capital = 0.0987
so cost of capital = 9.9 %
correct option is a 9.9%
I guess the correct answer is be inward looking, focusing on selling what the firm makes.
Nessca Corp. manufactures electronic gadgets. It instructs its marketing team to competitively advertise and promote its gadgets. The company, instead of believing in market research, believes that the market will absorb more products if customers are made aware of the products. The workforce of Nessca Corp. is most likely to be inward looking, focusing on selling what the firm makes.
