Answer:
$11,046
Explanation:
Present value = $10,000
Interest rate = 1%
Years = 11 years annually
Future value = A(1 + i/)^n
Future value = $10,000*(1 + 0.01)^10
Future value = $10,000*(1.01)^10
Future value = $10,000*1.10462212541
Future value = $11046.2212541
Future value = $11,046
So, the future value FV of the investment after 11 years is $11,046
For which capital component must you make a tax adjustment when calculating a firm’s weighted average cost of capital (WACC)? Preferred stock Debt Equity Water and Power Company (WPC) can borrow funds at an interest rate of 9.70% for a period of five years. Its marginal federal-plus-state tax rate is 25%. WPC’s after-tax cost of debt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,555.38 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 4.11% 4.73% 4.93% 3.70%
Answer and Explanation:
In order to make the adjustment for tax for determining the weighted average cost of capital , the debt component should be used as the interest expense is to be considered as deductible due to which the tax impact would be decreased
The after tax cost of debt is
= Cost of debt × (1 - tax rate)
= 9.70% × (1 - 0.25)
= 7.28%
Now the ytm would be
Given that
Future value = $1,000
Present value = $1,555.38
NPER = 15%
PMT = $1,000 ×11% = $110
The formula is given below:
= RATE(NPER;PMT;-PV;FV)
The present value comes in negative
After applying the above formula, the yield to maturity is 5.4759%
Now the after tax cost of debt is
= 5.4759% × (1 - 0.25)
= 4.11%
State law requires all electricians to be licensed. Ted is not licensed, but has been doing electrical work with his family business for five years. Despite Robin knowing Ted is unlicensed, she hires Ted to fix the electrical at her home for $5,000. When Ted completes the electrical project, Robin refuses payment. Will she have to pay?
Answer:
Yes
Explanation:
Yes, Robin would need to pay because she knew that Ted was not licensed and still decided to hire him. Therefore, agreeing to contract Ted and pay him for the work that he has done. Regardless of whether or not Ted's job was legal or not Robin still agreed and must pay Ted. Ted will later have to deal with his own legal issues but that does not affect the contract that was agreed upon by both parties.
Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $70,600. The company's beginning merchandise inventory was $16,500 and its ending merchandise inventory was $30,000. What was the total amount of the company's merchandise purchases for the month
Answer:
$84,100
Explanation:
Haack incorporation cost of goods last year was $70,600
The beginning merchandise inventory was $16,500
The ending merchandise inventory was $30,000
Therefore the total amount of purchases can be calculated as follows
Cost of goods= beginning inventory + purchases-ending inventory.
70,600= 16,500+purchases-30,000
70,600-16,500= purchases - 30,000
54,100 = purchases - 30,000
54,100+30,000= purchases
Purchases= 84,100
Hence the total purchases is $84,100
Maren received 10 NQOs (each option gives her the right to purchase 8 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $22 per share. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?
Answer and Explanation:
The computation of the gain recognized and the tax that should be paid is shown below
Sale of share(10 × 8 × $22) $1,760
Less: basis (10 × 8 ×$15) $1,200
The gain realized $560
Now the tax would be
= $560 × 15% preferential rate
= $84
Given the following, compute the cost of goods manufactured.
Direct material cost: $40,000
Direct labor cost: $100,000
Applied overhead: $120,000
Beginning work in process inventory: $30,000
Ending work in process inventory: $12,000
Answer:
$278,000
Explanation:
Given the above, cost of goods manufactured is computed as
= Direct materials + Direct labor + Applied overhead + Beginning work in process - Ending work in process
= $40,000 + $100,000 + $120,000 + $30,000 - $12,000
= $278,000
Cost of goods manufactured is $278,000
will the right to the child help in the development of the children explain with example
Answer: Yes, the rights of the child can help them in their development.
Explanation: Organizations such as UNICEF explain that children have a series of rights that are essential for them to have a healthy development and to become good adults. Children have the right to a family structure and to be cared for, since when they are young there are many things that they cannot do for themselves and they need others to achieve it. An example of this would be that children must be sent to school by their parents. Children have the right to an education.
Consider the attached clustered bar chart of the dashboard developed to monitor the performance of a call center. This chart allows the IT manager to _____.
Question Completion:
Consider the clustered bar chart of the dashboard developed to monitor the performance of a call center: Houston Email Internet Software Dallas Austin 0 5 20 25 10 15 Number of Calls This chart allows the IT manager to
O a. identify the percent of customers who do not have one of the listed problems.
O b. identify the frequency of a particular type of problem by location.
O c. identify which city contains the most customers.
O d. identify how often a problem is related to hardware.
Answer:
Consider the attached clustered bar chart of the dashboard developed to monitor the performance of a call center. This chart allows the IT manager to _____.
O b. identify the frequency of a particular type of problem by location.
Explanation:
The clustered bar chart attached to the report shows the call volume in the call center by type of problem (Email, Internet, or Software) for each of three cities in Texas. By viewing this clustered bar chart, the IT manager will be able to graphically and quickly identify if there is a particular type of problem by location. This bar chart is much easier to read and interpret than a text report. This is the major advantage of using graphs to represent written texts.
Which of the following describes a person's financial debt or obligation?
O Profits
O Assets
O Investments
O Liabilities
Answer:
Liabilities I'm sure ......
Answer:
Liabilities and some time investments
Why should a global marketing manager consult local attorneys in other countries before creating a marketing campaign abroad?
Answer:
ok answer is c
Explanation:
i did this today and got a 100%
Marigold Corp. purchased a truck at the beginning of 2020 for $109700. The truck is estimated to have a salvage value of $4200 and a useful life of 123000 miles. It was driven 22000 miles in 2020 and 30000 miles in 2021. What is the depreciation expense for 2020
Answer:
the depreciation expense of the year 2020 is $18,870
Explanation:
The computation of the depreciation expense of the year 2020 is as follows:
= (Truck value - salvage value) ÷ (useful life) × (driven miles)
= ($109,700 - $4,200) ÷ (123,000 miles) × (22,000 miles)
= $18,870
Hence, the depreciation expense of the year 2020 is $18,870
What is the yield to maturity of a one-year zero-coupon bond with a $10,000 face value and a price of $9400
Answer:
6.383%
Explanation:
Calculation for the What is the yield to maturity
Using this formula
YTM=n√Face value/Bond price -1
Where,
n=one-year
Face value=10,000
Bond price=9,400
Let plug in the formula
YTM=1√10,000/9,400−1
YTM=1.06383-1
YTM=0.06383*100
YTM=6.383%
Therefore the yield to maturity will be 6.383%
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $10,000,000 Accruals $9,000,000 Current liabilities $19,000,000 Long-term debt (40,000 bonds, $1,000 par value) $40,000,000 Total liabilities $59,000,000 Common stock (10,000,000 shares) $30,000,000 Retained earnings $50,000,000 Total shareholders' equity $80,000,000 Total liabilities and shareholders' equity $139,000,000 The stock is currently selling for $15.25 per share, and its noncallable $1,000.00 par value, 20-year, 9.00% bonds with semiannual payments are selling for $930.41. The beta is 1.22, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to Exhibit 10.1. What is the best estimate of the after-tax cost of debt? a. 5.23% b. 7.35% c. 5.59% d. 6.48% e. 6.17%
Answer:
b. 7.35%
Explanation:
Calculation for What is the best estimate of the after-tax cost of debt
First step is to use financial calculator to find I/Y
FV= 1,000
N=20 years *2 = 40
PMT=9%*1,000/2 = 45
PV = -930.41
I/Y=?
Hence,
I/Y = 4.9%
Second step is to calculate YTM
YTM=4.9%*2
YTM= 9.8%
Now let Calculate the best estimate of the after-tax cost of debt
Using this formula
After tax cost of debt = YTM*(1-tax rate)
Let plug in the formula
After tax cost of debt =9.8%*(1-25%)
After tax cost of debt =9.8*75%
After tax cost of debt =0.0735*100
After tax cost of debt == 7.35%
Therefore the best estimate of the after-tax cost of debt will be 7.35%
All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are: Multiple Choice
Question Completion:
Current information for the Healey Company follows:
Beginning raw materials inventory $25,200
Raw material purchases 70,000
Ending raw materials inventory 26,600
Beginning work in process inventory 32,400
Ending work in process inventory 38,000
Direct labor 52,800
Total factory overhead 40,000
Answer:
Healey Company
Total manufacturing costs for the year are:
$155,800
Explanation:
a) Data and Calculations:
Beginning raw materials inventory $25,200
Raw material purchases 70,000
Ending raw materials inventory (26,600)
Cost of raw materials used $68,600
Beginning work in process inventory 32,400
Ending work in process inventory (38,000)
Direct labor 52,800
Total factory overhead 40,000
Total manufacturing costs $155,800
b) The total manufacturing costs are made up of costs of direct materials, direct labor, and factory overhead. These costs are incurred in the production process and can be traced to the units of product(s) being manufactured.
give the examples of positive body language in teamwork
1. good posture
2. eye contact
3. be interested in what they are saying
4. be polite
Assume that an asset costing $72,000 is expected to produce 500,000 units and have a salvage value of $6,000. The first year, 90,000 units are produced; the second year, 82,000 units are produced; the third year, 94,000 units are produced. Using the units-of-production method, complete the following:
Year Depreciation Expense Book Value
0 — $72,000
1 fill in the blank 1 fill in the blank 2
2 fill in the blank 3 fill in the blank 4
3 fill in the blank 5 fill in the blank 6
Answer:
depreciable value = $72,000 - $6,000 = $66.000
depreciation expense per unit produced = $66,000 / 500,000 units = $0.132 per unit
depreciation expense year 1 = 90,000 x $0.132 = $11,880
depreciation expense year 2 = 82,000 x $0.132 = $10,824
depreciation expense year 3 = 94,000 x $0.132 = $12,408
Year Depreciation expense Book value
0 $0 $72,000
1 $11,880 $60,120
2 $10,824 $49,296
3 $12,408 $36,888
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 55%. Based on the DuPont equation, what was Vaughn's ROE
Answer:
18.85%
Explanation:
The computation of ROE is seen below
Total asset turnover = Sales ÷ Total assets
= 315,000 ÷ 210,000
= 1.5
Debt to total asset = Debt ÷ Total assets
= 55% × 210,000
= $115,500
Total assets = Total liabilities + Total equity
Total equity = $210,000 - $115,000 = $94,500
Equity multiplier = Total asset ÷ Equity
= 210,000 ÷ 94,500
= 2.222
Profit margin = Net income ÷ Sales
= $17,832 ÷ $315,000
= 5.66%
Therefore
Return on equity = Profit margin × Total asst turnover × Equity multiplier
= 5.66% × 2.22 × 1.5
= 18.85%
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open market in exchange for $16,600. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $97,500.During the next two years, the following information is available for Zip Company: IncomeDividends DeclaredCommon StockFair Value (12/31)2016 $315,0002017$70,000$6,700390,000201890,00014,500472,000 At December 31, 2017, Zip reports a net book value of $287,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2017. Assume Akron applies the equity method to its Investment in Zip account:What amount of equity income should Akron report for 2018
,Answer:
$23,910
Explanation:
The computation of the amount of equity income should Akron report for 2018 is given below:
But before that the amortization is
Purchase price $97,500
carrying value ($390,000 ×5%) $19,500
Total fair value $117,000
Less: net book value ($287,000 × 0.30) $86,100
Franchise agreement $30,900
Divided by Remaining life 10
annual amortization $3,090
Now the amount of equity income is
= $90,000 ×30% - $3,090
= $23,910
G2 - Magellan lost the favor of the king of Portugal when he became involved in a political
__________.
(a) entanglement
(b) discussion
(c) negotiation
(d) problems
(e) None of the above
Answer:
(b) discussion
Explanation:
For example, historians believe that Magellan
The diagnostic process is _____. a systematic approach to understand the organization none of the answers performed exclusively by the OD practitioner completely free of conflicts if performed properly
Answer:
A. a systematic approach to understand the organization
Explanation:
Business diagnosis can be defined as a strategic technique which typically involves the process of defining, identifying and classifying the various business processes, logistics, product quality in order to have an indepth understanding and knowledge about an organization.
The diagnostic process is a systematic approach to understand the organization because it involves critically studying all its aspects and areas.
Hence, the information gathered through the diagnostic process can be used by the management to facilitate its decision-making process and its competitive advantage.
Roeher Company sold $9,000 of its specialty shelving to Elkins Office Supply Co. on account. Prepare the entries when (a) Roeher makes the sale, (b) Roeher grants an allowance of $700 when some of the shelving does not meet exact specifications but still could be sold by Elkins, and (c) at year-end; Roeher estimates that an additional $200 in allowances will be granted to Elkins.
Answer:
1. Dr Accounts Receivable 9,000
Cr Sales Revenue 9,000
2. Dr Allowance for sales returns and allowances 700
Cr Accounts Receivable 700
3. Dr Allowance for sales returns and allowances 200
Cr Accounts Receivable 200
Explanation:
Preparation of the journal entry
1. Preparation of the entries when Roeher makes the sale
Dr Accounts Receivable 9,000
Cr Sales Revenue 9,000
2. Preparation of the entries when Roeher grants an allowance of the amount of $700
Dr Allowance for sales returns and allowances 700
Cr Accounts Receivable 700
3. Preparation of the entries when Roeher estimated that an additional amount of $200 in allowances will be granted to Elkins
Dr Allowance for sales returns and allowances 200
Cr Accounts Receivable 200
The most common method for compensating the contractor, allowing for changes to the scope of work during the construction period, is called:
Answer:
Lump sum contract.
Explanation:
A contractor can be defined as an individual who is saddled with the responsibility of overseeing, supervising, monitoring, controlling and analyzing the construction process of a project or property.
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law. There are various types of contracts used in field of construction and one of such is a lump-sum contract.
A lump sum contract is also known as stipulated sum and it refers to a type of contract in which a contractor states a predetermined amount of money (single price) that would be used to execute and complete a particular project.
Hence, the most common method for compensating the contractor, allowing for changes to the scope of work during the construction period, is called lump sum contract.
Suppose you observe the following exchange rates: €1 = $.85; £1 = $1.60; and €2.00 = £1.00. Starting with $1,000,000, how can you make money? Group of answer choices Start with euros; exchange for pounds; exchange for dollars; exchange for euros. Start with dollars, exchange for euros at €1 = $.85; exchange for pounds at €2.00 = £1.00; exchange for dollars at £1 = $1.60. Exchange $1m for £625,000 at £1 = $1.60. Buy €1,250,000 at €2 = £1.00; trade for $1,062,500 at €1 = $.85. No arbitrage profit is possible.
Answer:
i'll answer it after 15 years see you then
Explanation:
Do Not Change Subscription Price Increase Subscription Price
DailyVoice Do Not Change Subscription Price $500, $400 $200, $700
Increase Subscription Price $600, $300 $300, $100
The two major newspapers in a city, Daily Voiceand Town Herald, are considering whether to raise the subscription price. The first entries in the matrix above show the profits to Daily Voice, and the second entries show the profits to Town Herald. Which of the following is consistent with the above payoff matrix?
a. Do Not Change Subscription Price is adominant strategy forDaily Voice.
b. Do Not Change Subscription Price is adominant strategy forTown Herald.
c. Increase Subscription Price is a dominantstrategy forDaily Voice.
d. Increase Subscription Price is a dominantstrategy forTown Herald.
e. There are no dominant strategies in the abovepayoff matrix
Answer:
e. There are no dominant strategies in the above payoff matrix
Explanation:
a) Payoff matrix
Do Not Change Increase Subscription
Subscription Price Price
Do Not Change Subscription
Price $500 $400 $200 $700
Increase Subscription Price $600 $300 $300 $100
The players in the matrix payoff game are Daily Voice and Town Herald.
b) There is no dominant strategy that absolutely favors either Daily Voice or Town Herald in this matrix. A dominant strategy will exist if one party is always better off under a particular strategy regardless of the strategy the other party chooses.
Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 5.40 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 9.00 Fixed selling expense $ 3.80 Fixed administrative expense $ 1.50 Sales commissions $ 0.70 Variable administrative expense $ 0.65 If the selling price is $28.00 per unit, the contribution margin per unit sold is closest to:
Answer:
the contribution margin per unit is $14.05
Explanation:
The computation of the contribution margin per unit is shown below;
As we know that
Contribution Margin per unit = Selling price per unit - Variable costs per unit
= ($28) - ($5.20 + $5.40 + $2 + $0.70 + $0.65)
= $28 - $13.95
= $14.05
Hence, the contribution margin per unit is $14.05
Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are $8,000. What is the profit from the sale of 100 bicycles
Answer:
$12,000
Explanation:
To calculate the profit for Atlas corporation, we will use the formula below;
Profit = (Contribution margin × Units sold) - Fixed expenses
Given that;
Contribution margin = $200
Units sold = 100
Fixed expenses = $8,000
Profit = [($200 × 100) - $8,000]
Profit = $20,000 - $8,000
Profit = $12,000
Melanie owns a bakery and has just purchased new powerful mixing machines that will increase her daily output of baked goods. This is an example of an investment in:
Answer:
A
Explanation:
Here are the options :
A.physical capital.B.technology.C.human capital.D.financial capital.
Physical capital can be described as tangible, man-made objects used to produce goods. They include machinery, cars
the condition of Nepalese worker in foreign employment is poor what are the reasons behind it write any five reasons
Answer:
Hello lil boy!
Queen Messy here!
Lack of dependable data, extreme nepotism, and manipulation, in-transparent forms of work and continued abuse of authority is another reason why Nepal is a poor country. Related: Salary of Government officials of Nepal including President and Prime Minister. Lack of Industry.
Explanation:
________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm. Structural Fluctuational Business Financial
Answer:
Business
Explanation:
Business risk can be explained as when company or organization is been exposed to factors that can alter their profit negatively or factors that can lead the business to failure. Business risk are considered as things that can threatens the financial goals of a company from realisation. It should be noted that Business risk involves variation in returns due to the ups and downs of the economy, the industry and the firm.
10. Which of the following is NOT considered to be a line cook?
A. Pastry chef
B. Grill cook
C. Sous chef
D. Sauté chef
Answer:
C. Sous chef. Hope this helps!
In 2019, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2019, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,200. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2019. QBI deduction: $fill in the blank 3d3cdcfa0fe106c_1 Tax liability (round to the nearest dollar): $fill in the blank 3d3cdcfa0fe106c_2 b. Complete Henry's 2019 Form 8995 (Qualified Business Income Deduction Simplified Computation). Enter all amounts as positive numbers.
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data to solve. However, I have found that missing data on the internet and will be using that data to solve this question.
Solution:
Data Given:
Net Income = $61,200
Standard Deduction = $12,200
Henry's QBI deduction and his tax liability for 2019.
For Henry's QBI deduction, we have the following formula:
QBI deduction = (Net income - Standard Deduction) x 20%
Where, 20% is the value which is dragged from the 2019 Tax Rate Schedule which is missing here.
So,
Henry's QBI Deduction = ($61,200 - $12,200 ) x 20%
Henry's QBI Deduction = $9,800
Now, we need to calculate the tax liability:
For, Tax liability, first we need to complete the part (b) which is to compute the total taxable income.
So,
The Taxable Income = Net income minus Standard Deduction minus QBI Deduction
Taxable income = ($61,200 - $12,200 - $9,800)
Taxable income = $34,200
We need to use this taxable income and tax rate of 12% (fetched from Table) and 9700 (Fetched from the table)
So,
Tax Liability for Henry = $970 + (12% x (39,200 - 9,700))
Tax Liability For Henry = $970 + (12% x (29500))
Tax Liability For Henry = $970 + (3540)
Tax Liability For Henry = $4,510
b) in part b, we have to calculate the total taxable income, that we have already calculated. And since, there is no form, so, I will be completing this problem here.
Taxable income = Net income minus Standard Deduction minus QBI Deduction
Taxable income = ($61,200 - $12,200 - $9,800)
Taxable income = $34,200
