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 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.
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2.
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In: Accounting
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 years with regular monthly payments.
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.
Create an amortization table (balance sheet) for this loan.
What is the amount of the balloon payment (the last payment)?
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!)
How much would be saved in interest if you paid an extra $20 per month?
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. 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 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
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 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 | $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 = 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