Questions
1. ( A ) What is the WACC (weighted cost of capital) for a company if...

1. ( A ) What is the WACC (weighted cost of capital) for a company if it borrows from two sources: bank loan of 25 million at 6% per compounded monthly, and retained earning of 10 million with earnings per share of 35 cents and price per share 14.00 dollars. Income tax rate is 35%.

( B )When using the “longest life” planning horizon what issue (or issues) might you have to consider for alternatives whose cash flow profiles are shorter than the “longest life”?

- Choice a    determination of salvage values for any truncated cash flows

- Choice b    the validity of the assumption that cash flow profiles are repetitive

- Choice c    both choice a and choice b

- Choice d    Neither choice a nor choice b

( C ) . What is the future worth of the following: At t = 1 you deposit 10,000   At t= 2 you deposit 10,500 .   Every year you increase your deposit amount by 500.   This goes on until t = 60.   I = 6%. How much is in the account at t = 60?

In: Economics

I need information on Chipotle's price and cost management

I need information on Chipotle's price and cost management

In: Operations Management

Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment...

Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method based on an estimated useful life of ten years and an estimated The estimated value of a fixed asset at the end of its useful life.residual value of $680.

a. What was the The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.depreciation for the first year?
$

b. Assuming the equipment was sold at the end of year 2 for $8,090, determine the gain or loss on the sale of the equipment.
$ Loss

  • Gain
  • Loss

Feedback

Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero.

Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. If the book value is less than the sale price, the equipment was sold for a gain.

Learning Objective 3.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Cash
  • Accounts Payable
  • Accounts Receivable
  • Cash
  • Depreciation Expense
  • Equipment
  • Gain on Sale of Equipment
Accumulated Depreciation-Equipment
  • Accounts Payable
  • Accounts Receivable
  • Accumulated Depreciation-Equipment
  • Depreciation Expense
  • Equipment
  • Gain on Sale of Equipment
Loss on Sale of Equipment
  • Accounts Payable
  • Accounts Receivable
  • Depreciation Payable
  • Depreciation Expense
  • Loss on Sale of Equipment
Equipment
  • Accounts Payable
  • Accounts Receivable
  • Accumulated Depreciation-Equipment
  • Depreciation Expense
  • Equipment
  • Loss on Sale of Equipment

In: Accounting

Measuring Cost Behavior Month                         Setup Hours (X)          

Measuring Cost Behavior

Month                         Setup Hours (X)                    Setup Costs (Y)

January                                100                                        $1,000

February                              200                                         1,250   

March                                  300                                          2,250           

April                                    400                                          2,500           

May                                     500                                          3,750

What is the variable cost per unit using least-squares regression?

A. $4.50

B. $6.75

C. $7.25

D. $8.95

What is the fixed cost using least-squares regression?

A. $100

B. $105

C. $125

D. $135

What is the total cost at a level of 800 setup hours using least-squares regression?

A. $4,235

B. $4,765

C. $4,985

D. $5,525   

In: Accounting

Determine the depreciation of the equipment with a cost of 560,000.00 For a period of 6years...

Determine the depreciation of the equipment with a cost of 560,000.00

For a period of 6years life the salvage value is 5% of the cost. use 3 methods of depreciation. If you want to resale the machine on the 3rd year which method you will use and why.

In: Accounting

wite a paper on the cost of quality in a medical device company.

wite a paper on the cost of quality in a medical device company.

In: Accounting

Why does nitrogen assimilation in plants cost energy?

Why does nitrogen assimilation in plants cost energy?

In: Biology

Explain the implications of this decision on inventory, transportation and facilities cost

Explain the implications of this decision on inventory, transportation and facilities cost

In: Operations Management

Programming How does readability can affect cost?

Programming

How does readability can affect cost?

In: Computer Science

what are the advantages and disavdvages of Weighted average cost of capital?

what are the advantages and disavdvages of Weighted average cost of capital?

In: Finance