The amount of interest capitalized in 2021 for the building using the specific interest method is $360000.
The first thing to do is to calculate the average cost of borrowing which will be:
= ($3200000 × 8%) + ($6400000 × 5%) / $9,600,000
= ($256000 + $320000) / $9600000
= $576000 / $9600000
= 0.06 = 6%
The average expenditure during the year will be:
= $9600000/2.
= $4800000
The capitalized Interest will be:
= 9% × $2400000
= $216000.
Then, the capitalized Interest for the borrowing will be:
= 6% × $2400000
= $144000
The total capitalized Interest will be:
= $216000 + $144000
= $360,000
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Company cost of capital Quark Productions ("Give your loved one a quark today.") uses its company cost of capital to evaluate all projects. Will it underestimate or overestimate the value of high-risk projects?
Quark Productions is more likely to overestimate the value of high-risk projects using its company's cost of capital unless it is using the weighted cost of capital.
The company's cost of capital should change to reflect the high-risk nature of each project. Again, the estimation of high-risk projects does not work with a single figure (cost of capital). Quark Production should evaluate high-risk projects separately, using reflective costs of capital.
Thus, if Quark Productions uses a single company's cost of capital to evaluate all projects, there will be an overestimation of the values of the high-risk projects.
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The company has net nonoperating obligations (NNO) of $10,000 and 5,000 shares outstanding. Calculate the per-share stock price for 2021 using the FCFF information above, a discount rate of 7%, and a terminal growth rate of 2%. Hint: a. Calculate PV FCFF for each of 2022 to 2025 and sum them up; b. Calculate PV Terminal Year; c. Calculate Total Firm value by adding up (a) and (b); d. Subtract net nonoperating obligation to get total equity value; e. Divide total equity value by shares outstanding to get the per-share stock price (Please show your calculations)
The per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.
Explanation:
Net non-operating obligations (NNO) = $10,000
Outstanding shares = 5,000 shares
Discount rate = 7%
Terminal Growth rate = 2%
Expected free cash flows for Target Corp. for 2019:
Current Forecast Horizon Terminal
2019 2020 2021 2022 2023 Year
Free cash flows (FCFF) $4,650 $4,880 $5,130 $5,390 $5,650 $5,766
Discount factor at 7% 0.935 0.873 0.816 0.763 0.713
PV of FCFF $4,563 $4,478 $4,398 $4,311 $4,111
a. Sum of PV of FCFF for 2020 to 2032 = $17,750 ($4,563 + $4,478 + $4,398 + $4,311)
b. The PV Terminal Year = $4,111
c. Total Firm Value = $21,861 ($17,750 + $4,111)
d. Total Equity Value = $11,861 ($21,861 - $10,000)
e. Per Share Stock Price = $2.37 ($11,861/5,000)
Thus, the per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.
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orthwest Fur Co. started 2021 with $114,000 of merchandise inventory on hand. During 2021, $590,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,700. Merchandise with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $372,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale
Answer:
The cost of goods available is 3900
What does being organized in the workplace mean?
A. that an employee is good at listening
B. that an employee has good math skills
C. that an employee is reliable
D. that an employee works well with a team
A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a market rate of 3%, the bonds issue for $52,306. Calculate the carrying value of the bonds after the first semiannual interest payment.
The carrying value of the company's bonds after the first semiannual interest payment is $52,090.59.
Data and Calculations:
Face value of bonds = $50,000
Bonds Proceeds = $52,306
Bonds Premium = $2,306 ($52,306 - $50,000)
Maturity Period = 5 years
Coupon interest rate = 4%
Market interest rate = 3%
Interest Payment = Semiannually
First Semiannual Interest Payment:
Cash payment = $1,000 ($50,000 x 4% x 1/2)
Interest expense = $784.59 ($52,306 x 3% x 1/2)
Amortization of premium = $215.41 ($1,000 - $784.59)
Carrying value = $52,090.59 ($52,306 - $215.41)
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The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared
The amount of cash dividends to be paid if a $2 per share dividend is declared is $80,000
Total number of shares issued
= 45,000
Shares reacquired
= 5,000
Total number of outstanding shares
= 45,000 - 5,000
= 40,000
Then,
Cash dividends to be paid
= Total number of outstanding shares * Share dividend declared
= 40,000 * $2
= $80,000
Therefore, the amount of cash dividends to be paid if a $2 per share dividend is declared is $80,000
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When reporting inventory using the lower of cost or market method, market should not be more than: Multiple Choice Replacement cost. Net realizable value. Selling price. Net realizable value less a normal profit margin.
Considering the accounting principle, when reporting inventory using the lower cost or market method, the market should not be more than "Net realizable value less a normal profit margin."
This is because the lower cost or market method is a method that emphasizes that during the inventory measurement, inventory should be documented on the balance sheet using their historical price or the market value, that is, the value of the inventory when purchased.
This implies that the replacement cost of inventory cannot be lower than net realizable value, less a normal profit margin.
Hence, in this case, it is concluded that the correct answer is option D. "Net realizable value less a normal profit margin."
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Lolita’s team meets every Tuesday morning. Lolita always brings doughnuts to these meetings, and she always starts the meeting by asking who’s had a big success that week, which encourages participation. Lolita’s habitual actions were developed during the ____________________ stage of team development.
a. storming
b. preforming
c. forming
d. norming
Answer:
d. norming
Explanation:
Lolita’s team meets every Tuesday morning. Lolita always brings doughnuts to these meetings, and she always starts the meeting by asking who’s had a big success that week, which encourages participation. Lolita’s habitual actions were developed during the _______norming______ stage of team development.
Answer:
Lolita's habitual actions were developed during the norming stage of team development.
Explanation:
d. norming
DaaS is utilized for provisioning critical data on demand.
what will happen when unity is not in organization ? explain in details.
Explain 5 reasons why organizations restrict their staff from communication with press
Answer:
Explanation:
Work environment.
People's attitudes and emotional state.
Time zone and geography.
Distractions and other priorities.
Cultures and languages.
If Intermountain Healthcare wants to facilitate horizontal communication among health care professionals and administrators at its 22 hospitals and over 300 clinics, it could promote the use of email for this purpose. What guideline would not be an appropriate part of the organization’s email policy?
a. Emails are the most efficient way to send information to many people at once. Because of a message’s potential broad impact, make sure to confirm that it is accurate and professional before hitting Send.
b. Email is the medium of choice for communicating disappointing or negative information, because using email avoids potentially heated personal interactions that may adversely impact the work environment.
c. Emails are best for short messages, so lengthy documentation of procedures or policies should be communicated another way, such as through handbooks or documents posted to the organization’s intranet.
d. Emails lack the nonverbal component of communication, so if it’s possible that one party misunderstands the other, employees should move the communication to a phone conversation or meeting.
Answer:
b. Email is the medium of choice for communicating disappointing or negative information, because using email avoids potentially heated personal interactions that may adversely impact the work environment
XYZ Co. makes a processor that requires a metal that can be found in a single mine in Peru. Do you expect the price elasticity of supply for this processor to be elastic or inelastic? Explain.
Answer:
mAGIC
Explanation:
What makes a good leader
Answer:
A good leader is someone who is willing to hold up their own issues to help others. Another example of a good leader is someone who always tries to help no matter what.
Which of the following employees derives their income from a fee for the items sold?
a. commission
b. piece rate
C. salaried
d. tip
ut
Answer:
a. commission
Explanation:
please mark me as brainliest...
Answer:
A. commission
Explanation:
2021 edge
Grover Manufacturing is leasing some equipment from Woodson Equipment. Woodson has classified the lease as a sales-type lease. For what reason would Grover Manufacturing increase the present value of the lease payments
Answer: The lease contains a bargain-purchase option.
Explanation:
Grover Manufacturing increases the present value of the lease payments This is so that the lessee will be informed of any changes to the next lease payments.
How lease affect the debt?
Your DTI ratio rises as a result of the debt obligation that leasing a car adds to your credit report. You can, however, make your lease payments more affordable by negotiating in certain ways, which will lessen the impact. The gross capitalization cost is one lease component you might discuss to reduce the monthly payment.
Grover Manufacturing increases the present value of the lease payments This is so that the lessee will be informed of any changes to the next lease payments. Due to the increased future lease payments as a result of this modification, the lessee now has a greater lease debt.
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Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (10,000 units at $300 each) $ 3,000,000
Variable costs (10,000 units at $240 each) 2,400,000
Contribution margin 600,000
Fixed costs 420,000
Income $ 180,000
1. Compute break-even point in units.
2. Compute break-even point in sales dollars.
Hudson Company's break-even point in units and sales dollars = 7,000 units and $2,100,000, respectively.
Data and Calculations:
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31 Total Per Unit
Sales (10,000 units at $300 each) = $ 3,000,000 $300 (as given)
Variable costs (10,000 units at $240 each) 2,400,000 $240 ($2.4 m /10,000)
Contribution margin 600,000 $60 ($300 - $240)
Fixed costs 420,000
Income $ 180,000
Contribution margin ratio = 20% ($60/$300 x 100)
1. Break-even point in units = Fixed costs/Contribution margin per unit
= $420,000/$60
= 7,000 units
2. Break-even point in sales dollars = Fixed costs/Contribution margin ratio
= $420,000/20%
= $2,100,000
Thus, the break-even point in units and sales dollars = 7,000 units and $2,100,000, respectively.
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Please help! Need an expert in this and will give 50 points and brainliest if it’s answered. Getting reported if it’s answered for points
Pat Jones is a college student who is planning some networking opportunities for the current semester. Pat wanted to look professional for these events and felt a new suit would be a real benefit; however, the cost for the first event ended up being $75 which was a strain on the budget. Pat did not want to attend the
remaining three events in the same outfit, so a new strategy was developed. Instead of paying for new suits in cash, Pat decided to charge the suits on a credit card, wear them to the events, and then return them the next
day for full credit.
2. Do you feel Pat's new strategy is ethical? Why or why not? Could there be any consequences with this strategy?
3. How will this new strategy impact the company/companies where the suits are purchased?
4. What journal entry/entries would the company have to record related to the return of the suit?
Answer:
2. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.
3. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.
4. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.
Explanation:
What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 200 shares of Stock B that sell for $21 per share
Based on the information given the portfolio weights for a portfolio are:
Stock A 0.6187; Stock B 0.3815.
First step
Shares Price per share Total value
Stock A 145 $47 6,815
Stock B 200 $21 4,200
Total 11,015
Second step
Portfolio weights
Stock A [ 6,815 / 11,015 ] 0.6187
Stock B [ 4,200 / 11,015 ] 0.3813
Inconclusion the portfolio weights for a portfolio are: Stock A 0.6187; Stock B 0.3815.
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Service providers like cable companies have tiered pricing and also charge their customers according to a schedule of fees. Sometimes customers are able to negotiate for a lower price by getting fees or service charges waived for a certain amount of time if they contact customer service and threaten to cancel their service. The flexibility on the part of service providers is an attempt to practice:_________
The flexibility on the part of service providers is an attempt to practice Perfect Price discrimination.
A Price discrimination is a pricing strategy that tends to charges consumers different prices for similar goods or services.
Here, because of the customer negotiate for a lower price with threat to cancel the service if not agreed encourages price discrimination because the firm will not want to lose customer.
Therefore, the flexibility on the part of service providers is an attempt to practice Perfect Price discrimination.
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A good handler wants to use a thermometer to measure the air temperature inside of a cooler. To what temperature should the thermometer
be accurate?
Answer:
2°F, or ±1.0°C
Explanation:
The Three Little Pigs purchased three houses for a total cost of $160,000. Appraisal values for the three completed houses were: straw house, $40,000; wood house $60,000; and brick house $100,000. Using the basket purchase allocation, the recorded value of the brick house should be ______.
Using the basket purchase allocation, the recorded value of the brick house should be $80,000.
First step is to calculate the allocation percentage
Straw house Wood house Brick house Total
Fair market value $40,000 $60,000 $100,000 $200,000
Percentage 20% 30% 50%
($40,000/$200,000) ($60,000/$200,000) ($40,000/$200,000)
Second step is to allocate using basket purchase allocation
Straw house=20%×$160,000
Straw house=$32,000
Wood house= 30%×$160,000
Wood house=$48,000
Brick house=50%×$160,000
Brick house=$80,000
Inconclusion the recorded value of the brick house should be $80,000.
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Discuss the possible ways that purchasing becomes aware of the need to evaluate and select a supplier.
Explanation:
This lesson discusses the basics of project procurement management. Project procurement management is a critical part of overall project management, and we will use an example to show how this topic fits into everyday project management activities.
__________ refers to messages sent through human actions and behavior rather than through words.
✔ a. Nonverbal communication
b. Verbal communication
c. Written communication
d. E-mail
e. Oral communication
Answer:
Nonverbal Communication
what is decentralisation?
Based on business management, Decentralization is the transfer of control of an organization to various departments or authorities rather than one single one.
Different types of Decentralization De-ConcentrationDelegationDevolutionPrivatizationGenerally, decentralization is known to yield better, more timely decisions and increase organizational motivation.
Hence, in this case, it is concluded that decentralization is the sharing of authorities.
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Firms in an oligopoly often Group of answer choices Have no control over the price of their product. face perfectly elastic demand curves. make decisions based on the behavior or expected behavior of their competitors. operate without regard to the behavior of competing firms.
Based on economic situation analysis, the Firms in an oligopoly often "make decisions based on the behavior or expected behavior of their competitors."
This is because firms in an oligopoly tend to act inter-dependently.
This implies that the firms in oligopolies can act together to fix prices to maximize the possible profits in their industries.
Oligopoly is a term in economic theory used to describe the market condition whereby the smaller number of firms are producing a commodity.
Hence, in this case, it is concluded that the correct answer is option C. "make decisions based on the behavior or expected behavior of their competitors."
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Because with building costs soaring out of sight, there is pent-up demand for a well-designed, green-built, contemporary home that's actually affordable. That means it has to be efficiently constructed, and the best way to do this is in a factory, where it can be put together on an assembly line, like an automobile. A company has developed the Glidehouse can be built that way in 19 days in a factory near Vancouver, British Columbia, then trucked to your property. Glidehouse is produced through:
Answer: The Assembly Process
Explanation: I hope it helps you!
Glidehouse is produced through the assembly process by putting together an assembly line, like an automobile.
What is assembly process?An assembly process is the one in which materials to be manufactured are combined continuously by workers to produce an identified product.
It is an arrangement in which the product being assembled by workers passes consecutively from operation to operation until completed.
Hence, Glidehouse is produced through the assembly process by putting together an assembly line, like an automobile.
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What are some possible effects of demonstrating prejudice toward others in a healthcare setting? Check all of the boxes that apply. o negative impact on the healing ability of a patient who is targeted by prejudice positive impact on how comfortable a patient feels positive influence on a patient's emotional health increased risk for a patient to develop additional health problems positive impression on a patient about the healthcare facility
Answer:
A) Negative impact on the healing ability of a patient who is targeted by prejudice
D) Increased risk for a patient to develop additional health problems
Explanation:
I got it wrong for you can I have brainliest?
Answer:
Person above is correct.
Explanation:
on Edge
The following data pertain to an investment proposal (Ignore income taxes.):
Cost of the investment $35,000
Annual cost savings $12,000
Estimated salvage value $6,000
Life of the project 5 years
Discount rate 18%
Required:
Determine the appropriate discount factor(s) using the tables provided.
The net present value of the proposed investment is closest to $5,146.
Net present value = Present value of cash-flows - Initial investment
Given Information
PV of cashflows at 18%
Cash flows PV at 18% P.V. of cash-flows
$12,000 (Cost saving) 3.127 $37,524
$6,000 (Salvage) 0.437 $2,622
Total $40,146
Net present value = $40,146 - $35,000
Net present value = $5,146
Therefore, the net present value of the proposed investment is closest to $5,146.
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GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.
The difference between the price that GeonHouses charges its customers and the cost of manufacturing a bowl of soup is C. captured value.
The captured value represents the difference between the $3 selling price and the $1 cost of manufacturing a bowl of soup for customers.
This captured value is also known as the gross profit. Based on the gross profit, GeonHouses deduct its expenses and taxes to determine the actual net income.
The $2 difference is not an abstract, modified, or differentiation value.
Data and Calculations:
Selling price per bowl of soup = $3
Manufacturing cost per bowl = $1
Captured value = $2 ($3 - $1)
Thus, the $2 difference is a captured value for GeonHouses.
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Options for this question are:
A. abstract value
B. modified value
C. captured value
D. differentiation value