Answer:
APR= 23.91%
EAR= 8%
Explanation:
A stock was bought at $51.27 three months ago
The current share price is $55.36
Therefore the APR of the investment can be calculated as follows
= 55.36-51.27/51.27
= 4.09/51.27
= 0.0797
= 7.97%
APR= 3×7.97
= 23.91%
EAR= (1+0.079/3)^3-1
= 1+0.0263^3-1
= 1.026^3-1
= 0.08×100
= 8%
Answer:
Lost contribution per unit = $56 per unit
Explanation:
The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)
This implies that it can only produce to meet the external and a portion of Division Y demand
Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.
Therefore, the minimum transfer price
minimum transfer price= Variable cost + a lost contribution from internal supply
The lost contribution represent the amount Division X would have made had sold the units to external buyers
Lost contribution per unit = $56 per unit
$4,050, i got that by adding up each size than subtracting the totals
Answer:
d) Changes in working capital
Explanation:
the formula used for calculating net PP&E is:
Net PP&E = gross PP&E + capital expenditures - accumulated depreciation
PP&E represents fixed assets (plant, property, and equipment).
On the other hand, working capital involves current assets and liabilities such as cash, accounts receivables, accounts payable, inventories, taxes payable, etc.
Answer:
C)$74,857.20
Explanation:
The computation of the depreciation expense in year 3 is shown below:
= Required equipment amount × MACRS depreciation allowances in year 3
= $428,000 × 17.49%
= $74,857.20
Simply we multiply the equipment amount with its depreciation allowance of year 3 so that the correct amount can be computed.
All other information which is given is not relevant. Hence, ignored it
