Answer:
accounting profit from her first year = $184000
so correct option is D. $184,000
Explanation:
given data
earning = $223,000 per year
generated revenues = $347,000
explicit costs = $163,000
to find out
accounting profit from her first year
solution
we know that accounting profit is the difference between explicit cost and explicit revenue so
we get accounting profit from her first year is as
accounting profit from her first year = generated revenues - explicit costs .................1
put here value we get
accounting profit from her first year = $347000 - $163000
accounting profit from her first year = $184000
so correct option is D. $184,000
Which activity is the fourth step in the decision-making process of solving a workplace problem? C. Implement the solution
The first step is is to identify the goal, then gather the information and generate alternatives, evaluate the consequences, implement the solution
When you implement the solution you are deciding the best choice after considering the alternatives and putting the plan into action.
Answer:
The answer is A. £0.699/$; £0.699/$
Explanation:
The direct quote for British investor is the same as the indirect quote for the U.S. investor.
Calculation is as follows; 1/1.43 = 0.699
Answer:
Turnbull's weighted average cost of capital will be higher by 0.65% if it has to raise additional common equity capital.
Explanation:
By combining the WACC formula and retained earnings cost of capital,we will arrive at;
WACC = Debt W × after tax cost of debt + Preferred stock weight × cost of capital + Equity W × Cost of capital
= 58% × 4.92% + 6% × 9.3% + 36% × 12.4%
= 2.85% + 0.56% + 4.46%
= 7.87%
Also, using the same WACC formula and using common equity cost of capital, , we will arrive at the below;
WACC = Debt W × after tax cost of debt + preferred stock weight × cost of capital + Equity W × cost of capital
= 58% × 4.92% + 6% × 9.3% + 36% × 14.2%
= 2.85% + 0.56% + 5.11%
= 8.52%
Therefore, increase cost using common equity over retained earnings is [ 8.52% - 7.87%]
= 0.65%
N.B we arrived at 4.92% for after tax by;
Pre tax 8.2%
Current tax rate 40%
= Pre tax × ( 1 - cost of debt)
= 8.2% × ( 1 - 40%)
= 8.2% × 0.6%
= 4.92%
Answer:
PV= $1,311.17
Explanation:
Giving the following information:
Future Value (FV)= $5,000
Number of periods (n)= 25 years
Interest rate (i)= 5.5% compounded annually
T<u>o calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV= FV / (1+i)^n
PV= 5,000 / 1.055^25
PV= $1,311.17
