Suppose you are trying to estimate the after tax cost of debt for a firm as part of the calculation of the Weighted Average Cost of Capital (WACC). The corporate tax rate for this firm is 39%. The firm's bonds pay interest semiannually with a 4.8% coupon rate and have a maturity of 7 years. If the current price of the bonds is $1,143.55, what is the after tax cost of debt for this firm? (Answer to the nearest tenth of a percent, e.g. 12.3%, but do not use a percent sign).

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Cost per equivalent units of $2.10 for Direct Materials and $4.10 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

b. Did the production costs change from the preceding period?

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

Suppose you are trying to estimate the after tax cost of debt for a firm as part of the calculation of the Weighted Average Cost of Capital (WACC). The corporate tax rate for this firm is 35%. The firm's bonds pay interest semiannually with a 7.1% coupon rate and have a maturity of 13 years. If the current price of the bonds is $934.64, what is the after tax cost of debt for this firm? (Answer to the nearest tenth of a percent, e.g. 12.3%, but do not use a percent sign).

Jennifer K. is analyzing a project and has determined that the initial cost will be $1,519,000 and the required rate of return needs to be 14 percent. The project has a 60 percent chance of success and a 40 percent chance of failure. If the project fails, it will generate an annual after-tax cash flow of $261,000. If the project succeeds, the annual after-tax cash flow will be $684,000. She has further determined that if the project fails, she will shut it down after the first year and sell the equipment for the after-tax salvage value of $530,000. If however, the project is a success, she can expand it with no additional investment and increase the after-tax cash flow to $712,000 a year for Years 2-5. At the end of Year 5, the project would be terminated and have no salvage value. What is the expected net present value of this project at Time 0? $210,419.21 $176,737.63 $235,844.96 $229,842.11 $185,006.33

A company is considering the purchase of a large stamping machine that will cost $135,000, plus $6,700 transportation and $12,300 installation charges. It is estimated that, at the end of five years, the market value of the machine will be $52,000. The IRS has established that this machine will fall under a three-year MACRS class life category. The justifications for the machine include $36,000 savings per year in labor and $46,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. What is the after-tax equivalent annual worth of this investment over the five year period which ends with the sale of the machine?    (Do not enter a dollar sign $ with your answer.)

Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process—Assembly Department Bal., 5,000 units, 40% completed 13,900 To Finished Goods, 115,000 units ? Direct materials, 118,000 units @ $1.9 224,200 Direct labor 204,900 Factory overhead 79,740 Bal. ? units, 70% completed ? a. Based on the above data, determine the different costs listed below. If required, round your interim calculations to two decimal places. 1. Cost of beginning work in process inventory completed this period. $ 8,340 2. Cost of units transferred to finished goods during the period. $ 3. Cost of ending work in process inventory. $ 4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $ b. Did the production costs change from the preceding period? c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

1. Discuss the major differences between the cost of capital for a domestic firm compared to an MNC. Should an MNC have a lower or higher cost of capital than their domestic counterpart?

Explain the three common methods of assigning overhead to the cost of a product. Be sure to discuss the advantages and disadvantages of each method. Which method do you feel is the best one to use and why. Give a specific type of product/production in your answer. " Managerial Accounting"

DEPRECIATION
Calculate the complete depreciation table for an asset with a Cost Basis of $80,000, a Salvage Value of $20,000 and a useful life of 6 years with the Declining Balance 200% method with switchover to Straight Line Method.