Questions
Explain why a corporation's WACC would likely increase if it changes the capital structure? 2. The...

Explain why a corporation's WACC would likely increase if it changes the capital structure?

2. The risk as measured in standard deviations of a particular security is 10 percent and the expected return on invested amount is 13. percent. What is the CV for this security? How would you explain this number?

nswer questions a, b, b, and 6 based on the following information from the financial statements of a rporation Total assets $2 billion det Total equity S? billion Total common equity so8 billioniky Cost of preferred stock 10 percent rde Cost of common stock 13 percentg Tax rate 40 percentT Pretax cost of debt 1o percent

a- Calculate the WACC for this corporation? 00.58. What is the capital structure of this corporation in proportions?

b waht is the capital structuer of this corportions in proporions?

c-How much debt this corporation has? Answer the amount of dollars and as a percentage of assets??

In: Finance

11. World Company expects to operate at 80% of its productive capacity of 70,000 units per...

11. World Company expects to operate at 80% of its productive capacity of 70,000 units per month. At this planned level, the company expects to use 25,200 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.450 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $57,960 fixed overhead cost and $322,560 variable overhead cost. In the current month, the company incurred $386,000 actual overhead and 22,200 actual labor hours while producing 53,000 units.

(1) Compute the overhead volume variance. Classify each as favorable or unfavorable.
(2) Compute the overhead controllable variance. Classify each as favorable or unfavorable.

1.

Fixed Overhead Applied
Fixed overhead applied
Volume Variance
Volume variance   

2.

Total actual overhead
Flexible budget overhead
Total 0
Overhead controllable variance

In: Accounting

A Mechanical design company produces an innovative design Component Z100 design of producing one(1) unit of...

A Mechanical design company produces an innovative design Component Z100 design of producing one(1) unit of component Z100 is provided in the bill of materials BOM which requires mix shown in Table Q3-1. The current monthly production of Component Z100 is consumption shown in Table Q3-2. Determine the following;

(i) Material usage variance;

(ii) Material price variance;

(iii) Total material cost variance;

(iv) Discuss at least two(2) importance of variance analysis in a manufacturing company

Table Q3-1

Materials

Usage (units)

Total cost

(OMR)

V

5

17٫5

W

3

37٫5

X

8

52

Y

2

40

Table Q3-2

Materials

Usage (units)

Total cost

(OMR)

V

11،937

51،235

W

6،854

94،382

X

17،355

104،133

Y

4،317

76،868

I need write in computer and all steps

In: Statistics and Probability

You borrow $2,400 to pay for a Caribbean vacation and will pay it off over 2...

  1. You borrow $2,400 to pay for a Caribbean vacation and will pay it off over 2 years with regular monthly payments.

    1. What is the regular payment if interest is charged on the loan amount at APR of 12% interest is charged monthly on the balance still owed. Round up to the next whole dollar.

    2. Create an amortization table (balance sheet) for this loan.

    3. What is the amount of the balloon payment (the last payment)?

    4. What is the total amount of payments made? What is the total cost of the loan? (The cost of the loan is the total amount of interest paid. This is most easily calculated as cost = (number of payments)*(payment amount) - (principal). You may have to adjust it slightly based on the last payment, though!)

    5. How much would be saved in interest if you paid an extra $20 per month?

    6. How much faster would you pay off the loan if you paid an extra $20 per month?

In: Finance

Single Plantwide Factory Overhead Rate Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones....

Single Plantwide Factory Overhead Rate

Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $117,980. Factory overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:

Budgeted Production Volume Direct Labor Hours Per Unit
Trumpets 2,700 units 0.5
Tubas 500 1.6
Trombones 1,200 1.1

If required, round all per unit answers to the nearest cent.

a. Determine the single plantwide factory overhead rate.
$ per direct labor hour

b. Use the factory overhead rate in (a) to determine the amount of total and per-unit factory overhead allocated to each of the three products.

Total
Factory Overhead Cost
Per Unit
Factory Overhead Cost
Trumpets $ $
Tubas
Trombones
Total $

In: Accounting

Two advertising media are being considered for the promotion of a product. Radio ads cost $480...

Two advertising media are being considered for the promotion of a product. Radio ads cost $480 each, while newspaper ads cost $550 each. The total budget is $20,000 per week. The total number of ads should be at least 30, with a max of 5 newspaper ads. Each newspaper ad reaches 8,000 people, while each radio ad reaches 5,000 people.

Let R = # of radio ads

Let P = # of newspaper ads

Max 5000 R + 8000P

s. t.

480R + 550P <= 20000 cost of ads

R + P >= 30 total # of ads

P <= 5 max number of newspaper ads

R,P >= 0

Round your answers to the highest whole numbers

The company wishes to reach as many people as possible while meeting all the constraints stated, what is maximum reach?

How many ads of each type should be placed?

In: Statistics and Probability

Question 2 (9 marks) ROA Limited purchased the following trading securities on 1 January 2018. Cost...

Question 2
ROA Limited purchased the following trading securities on 1 January 2018. Cost and fair values are shown below:

Cost

Fair value

Fair value

1 January 2018

31 December 2018

31 December 2019

BTS Limited

(15,000 shares)

$29 per share

$25 per share

$28 per share

LK Limited

(2,000 shares)

$105 per share

$108 per share

$110 per share

Required:
a. Calculate total cost on 1 January 2018, total fair value on 31 December 2018 and total fair value on 31 December 2019.

b. Prepare the journal entry to record the purchase of the equity investments on 1 January 2018.

c. Prepare the journal entry to record the fair value adjustment on 31 December 2018.

d. Prepare the journal entry to record the fair value adjustment on 31 December 2019.

In: Accounting

Betty's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs...

Betty's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs are allocated on the basis of warehouse-hours. Data Center Department costs are allocated based on the number of computer hours. The costs of departments, warehouse-hours and number of computer hours are as follows:

Support Departments

Operating Departments

Warehouse

Data Center

Music

Books

Departmental costs

$ 60,000

$40,000

$60,000

$70,000

Warehouse-hours

-

400

200

400

Computer hours

250

-

375

375

The total cost accumulated in the music department using the direct method is

$126,000

$104,000

$100,000

$130,000

The total cost accumulated in the music department using the step-down method is (assume the warehouse department goes first)

$126,000

$100,000

$130,000

104,000

The total cost accumulated in the music department using the reciprocal method is

Group of answer choices

$122,402

$102,222

$142,471

$127,778

In: Accounting

department patient services revenue space (sq ft.) Housekeeping labor hours salary dollars General administration 10,000 2,000...

department patient services revenue space (sq ft.) Housekeeping labor hours salary dollars
General administration 10,000 2,000 $1,500,000
Facilities 20,000 5,000 3,000,000
Financial Services 15,000 3,000 2,000,000
Total 45,000 10,000 $6,500,000
Routine Care $30,000,000 400,000 150,000 $12,000,000
Intensive Care $4,000,000 40,000 30,000 $5,000,000
Diagnostic Services $6,000,000 60,000 15,000 $6,000,000
Other Services $10,000,000 100,000 25,000 $7,000,000
Total $50,000,000 600,000 220,000 $30,000,000
Grand total $50,000,000 645,000 230,000 $36,500,000

6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization.

a. What are the appropriate allocation rates?

b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital’s overhead costs to the patient services departments.

In: Accounting

Suppose that two polluting firms have marginal abatement costs given by the following equations: MAC1 =...

Suppose that two polluting firms have marginal abatement costs given by the following equations:

MAC1 = 50 – 5e1 and MAC2 = 40 – 4e2

where e1 and e2 are the emission levels of each firm respectively. The regulator’s goal is to reduce total pollution from the two firms to 8 units.

a) Suppose that the regulator requires that each firm reduce their emissions to 4 units (i.e. they use a uniform standard). Compute each firm’s total abatement costs under this uniform standard and show graphically.

b) Find the cost effective allocation of the 8 units of emissions to the two firms. Compute each firm’s total abatement costs under the cost effective allocation and show graphically.

c) Now, compare the results between parts a) and b). Which allocation of emissions (uniform or cost effective) does each firm prefer and why? Which allocation does society prefer and why?

In: Economics