Answer:
Cost of equity, re= 0.098356 or 9.84 %
Explanation:
D1 = $ 1.25
P0 = $ 27.50
gL = 5 % = 0.05
F = 6 % = 0.06
Cost of equity, re can be calculated using the formular below:
Cost of equity, re = D1/ {P0 x (1- F)} + gL
= $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05
= $ 1.25 / ($ 27.50 x 0.94) + 0.05
= $ 1.25 / 25.85 + 0.05
= 0.048356 + 0.05
Cost of equity, re= 0.098356 or 9.84 %
Answer:
$83000
Explanation:
Given: Stadium is fined for $186000
Other parking expense is $163000
Revenue generated by stadium in parking= $432000.
Now, calculating profit:
Profit= 
Profit= 
∴ Profit= $83000
∴ Total profit made for parking that day is $83000.
Answer:
$1,269.46
Explanation:
Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.
To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)
Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)
= $75 + $418 = $493 - This represents a partial net income
The next step is to calculate the taxable income as follows:
The net income is $493, and the Tax rate is 35%
Taxable Income = $493/ (1-0.35) = $758.46
Earnings before interest and tax therefore =
Interest paid + Taxable Income
= $511 + $758.46 = $1,269.46
Answer:
4
Explanation:
Given:
A company employs two office assistants for every nine architects and
ratio is given = 2:9
Question asked:
How many new office assistants will it need to hire as it plans to hire eighteen new architects = ?
Solution:
Let ratio of new office assistants = 
Ratio of two office assistants for every nine architects = 2:9
By using formula of ratio and proportion:
Ratio of two office assistants for every nine architects : : ratio of new office assistants for eighteen new architects,
2 : 9 : : : 18
By cross multiplication,
Dividing both side by 9,
Thus, 4 new office assistants will it need to hire.
Answer:
$150,150
Explanation:
Total fair value of all assets:
= Land + Building + Paddleboats
= $67,200 + $158,400 + $254,400
= $480,000
Building accounted for:
= Fair value of building ÷ Total fair value
= $158,400 ÷ $480,000
= 33%
Therefore, the building is 33% of the total fair value of assets.
Cost of acquisition of assets:
= Amount paid + Closing cost to buy out a competitor
= 450,000 + 5,000
= $455,000
Cost to be allocated to the building:
= Cost of acquisition of assets × Percent share in total fair value
= $455,000 × 33%
= $150,150
