Answer:
d. 5.08% .
Explanation
Give that Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000 and that if the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation . To do this our first step is to calculate the yield to maturity (YTM)as follows :
46.25 * [1-(1+YTM/2)ˆ-40]/YTM/2 + 1000/(1+YTM/2)ˆ40 = 1075
Therefore ,YTM = 8.46% . second step we need to calculate the cost of debt as follows . The cost of debt = 8.46% * (1-40%) = 5.08% . This means that the correct answer is d. 5.08% .
Answer:
8.08
Explanation:
Hi!
The income elasticity of demand is calculated by dividing the negative % change in demand by the % change in real income.
We calculate the negative % change in demand as:
19/20 = 0.95, a 95%
Then, the % change in real income as:
(34,000-30,000)/34,000 = 0.1176, an 11.76%
So the income elasticity of demand is:
0.95/0.1176 = 8.08
Hope it helps! :)
A wage is a monetary compensation paid to a worker or an employee for the work done or service provide. In a firm or a factory there are two types of labor namely direct labor and indirect labor. Direct labor are the workers on the production line whose efforts directly produce what the company manufactures while indirect labor are all the other workers such as the watchman or security guard. In this case, the wages of a timekeeper would be classified as indirect labor.
Answer:
Allocated MOH= $888
Explanation:
Giving the following information:
The Customizing Department’s predetermined overhead rate is based on direct labor-hours.
Customizing
Direct labor-hours 8,300
Total fixed manufacturing overhead cost $83,000
Variable manufacturing overhead per direct labor-hour $4.80
Job T138:
Direct labor-hours 60
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (83,000/8,300) + 4.8
Predetermined manufacturing overhead rate= $14.8 per direct labor hour
<u>Now, we can allocate overhead to Job 138:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14.8*60= $888
Answer:
$18,200
Explanation:
Calculation to determine what Jarrod may exclude from his gross income.
Using this formula
Gross income=Tuition+Books and supplies
Let plug in the formula
Gross income= $16,800 + $1,400
Gross income=$18,200
Therefore Jarrod may exclude $18,200 from his gross income.
