Answer:
debt-equity ratio results in the lowest possible weighted average cost of capital.
Explanation:
The debt equity ratio measures how well a business's equity can account for its debt.
Weighted average cost of capital is referred to as a business's cost of capital and is the rate a company is expected to pay to its shareholders.
When the debt equity ratio results in the lowest weighted average cost of capital, it indicates that the cost of finding for the company is low. This is the optimal and least expensive capital structure.
Answer:
$7,750
Explanation:
The computation of the net income for the first year is shown below:
but before that following calculations needed
The Cost of production is
= Direct material + Direct labor + Manufacturing overhead
= $11,625 + $11,000 + $10,000
= $32,625
The Unit product cost is
= $32,625 ÷ 7,250 units
= $4.50 per unit
Now
Cost of goods sold = Number of units sold × cost per unit
= 4,500 units × $4.50
= $20,250
And, finally
Net Income = Sales revenue - COGS - general, selling, and administrative expenses
= (4,500 units × $7) - $20,250 - $3,500
= $7,750
Answer:
Annual deposit (PMT) = $1,567,060.39
Explanation:
Given:
Future value of annuity due = $8,000,000
Rate of interest(r) = 10% = 0.1
Number of year (n) = 4 year
Annual deposit (PMT) = ?
Computation of annual deposit :
\\\\8,000,000 = PMT [\frac{(1+0.1)^4-1}{0.1} ](1+0.1)\\\\8,000,000 = PMT [\frac{(1.1)^4-1}{0.1} ](1.1)\\\\8,000,000 = PMT [\frac{(0.4641}{0.1} ](1.1)\\\\8,000,000 = PMT [5.1051]\\PMT = 1,567,060.39](https://tex.z-dn.net/?f=Future%5C%20value%5C%20of%5C%20annuity%5C%20due%20%3D%20PMT%20%5B%5Cfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%20%5D%281%2Br%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%281%2B0.1%29%5E4-1%7D%7B0.1%7D%20%5D%281%2B0.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%281.1%29%5E4-1%7D%7B0.1%7D%20%5D%281.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%280.4641%7D%7B0.1%7D%20%5D%281.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B5.1051%5D%5C%5CPMT%20%3D%201%2C567%2C060.39)
Annual deposit (PMT) = $1,567,060.39
Answer:
Choose Project A whose payback is 2.492 years and therefore falls within the 2.5 year required payback period.
Explanation:
Project A
Year Cash-flow Balance
0 (72,000) (72,000)
1 21,400 (50,600)
2 22,900 (27,700)
3 56,300 28,600
Project B
Year Cash-flow Balance
0 (81,000) (81,000)
1 20,100 (60,900)
2 22,200 (38,700)
3 74,800 36,100
Answer:
1) Dr Petty Cash $600
Cr. Cash $600
2) Dr. Postage Expense $250.40
Dr. Office Supplies Expense $160.90
Dr. Miscellaneous expense $124.05
Dr. Cash over and short $8.3
Cr. Cash $543.65
