Tool Manufacturing has an expected EBIT of $63,000 in perpetuity and a tax rate of 35 percent. The firm has $170,000 in outstanding debt at an interest rate of 7.9 percent, and its unlevered cost of capital is 12 percent. What is the value of the firm according to MM Proposition I with taxes?

Answer:

B

Explanation:

Use for business communications only and the disallowing of the transmission of confidential business information are recommended guidelines for Instant messaging

Answer:

Total FV= $3,433,859.29

Explanation:

First, we will calculate the future value of each equal annual deposit. Then, the ending value in 33 years of investment as a whole.

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV1= {3,500*[(1.137^6) - 1]} / 0.137= $29,648.89

FV2= {8,800*[(1.137^11) - 1]} /0.137= $199,476.80

FV3= {14,400*[(1.137^16) - 1]} /0.137= $714,882.03

Now, the total future value:

FV= PV*(1+i)^n

FV1= 29,648.89*(1.137^27)= 949,600.61

FV2= 199,476.80*(1.137^17)= 1,769,376.65

FV3= 714,882.03

Total FV= $3,433,859.29

Answer:

Results are below.

Explanation:

First, we need to calculate the total cost of producing 2,900 units:

Total cost= direct material + direct labor + allocated overhead

Total cost= (2*7)*2,900 + (0.5*16)*2,900 + [(0.5*16)*0.6]*2,900

Total cost= 40,600 + 23,200 + 13,920

Total cost= $77,720

Now, the unitary standard cost:

Unitary cost= total cost/number of units

Unitary cost= 77,720 / 2,900

Unitary cost= $26.8

Answer:

Total dollar return = 2400 + 8040 = $10440

Option d is the correct answer

Explanation:

To calculate the total dollar return on the investment, we will calculate the value of dividend received from the shares and the capital gain made on this investment. The capital gain is the appreciation in value less the initial cost paid for the investment.

First we calculate the value of dividend received on the investment.

Dividend received = 3000 * 0.8 = $2400

Now we calculate the value of capital gain.

Capital gain = (Sale price - Initial cost) * Number of shares

Capital gain = (49.74 - 47.06) * 3000

Capital gain = $8040

Total dollar return = 2400 + 8040 = $10440

Explanation:

Self-determination theory (SDT) is a macro theory of human motivation and personality that concerns people's inherent growth tendencies and innate psychological needs.

Answer:

Explanation:

Self-determination theory is a psychological framework for understanding human motivation. It was developed by psychologists Richard Ryan and Edward Deci and grew out of research on intrinsic motivation, or the internal desire to do something for its own sake, not for an external reward. Self-determination theory states that people are driven by three basic psychological needs: autonomy, competence, and relatedness.

Answer: A. Debit to premium on bonds

Explanation:

From the information, we are informed that a company calls its bonds at a price of $105,000 and that the face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745.

The issuer's journal entry to record the retirement will include:

Debit bonds payable $100,000

Debit premium on bonds $3,745

Debit loss on bond retirement $1255

Credit cash $105,000

Therefore, the correct option is A.

Answer:

$1,476,923.08  

Explanation:

The company is an all-equity firm, hence, the value of the firm can be determined using the formula below:

value of firm=EBIT*(1-tax rate)/average cost of capital

Value of firm=$16,000,000

EBIT is the unknown

tax rate=35%

average cost of capital=6%

16,000,000=EBIT*(1-35%)/6%

16,000,000=EBIT*0.65/6%

16,000,000*6%=EBIT*0.65

EBIT=16,000,000*6%/0.65

EBIT=$1,476,923.08  

Answer:

$479,520

Explanation:

Calculation for the balance of the Work in Process Inventory account on June 30

First step is to calculate the Predetermine overhead rate

Predetermine overhead rate = 800,000/500,000

Predetermine overhead rate = 1.6 per labour hour

Second Step will be to calculate the Total cost for Job X43 and Job Z22

Job X43 Job Z22

Direct material 110,000 79,000

(Job X43 86,000+24,000=110,000)

(Job Z22 44,000+35,000=79,000)

Add Direct labour 129,000 140,000

(Job X43 101,000+28,000=129,000)

(Job Z22 78,000+62,000=140,000)

Add Manufacturing overhead applied

10,320 11,200

[Job X43 (5,050+1,400) *1.60= 10,320]

[Job Z22 (3,900+3,100)*1.6= 11,200]

Total cost 249,320 230,200

Last step is to calculate Work in process balance

Work in process balance = (249,320+230,200) Work in process balance=$ 479,520

Therefore the balance of the Work in Process Inventory account on June 30 will be $ 479,520

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the concept known as "Descentralization" in the field of business and management refers to the whole opposite situation. The process of descentralization focus on the fact of letting other make the decisions, meaning that the decision making process starts from the higher levels but later it goes down to the lower levels of the company by letting those other employees or lower managers to adjust the decision made from above to their own ideas of how to make the decision a reality. Therefore that in this concept the important thing to have in mind is to magnify the number of trusted people that can take the decision and knowing that it is a good way to approach it.

Answer:

Explanation:

A monopolistic market basically means that a single company is running/controlling the entire market. Therefore, having fewer firms in the industry would make a difference. For starters, the variety of clothing would be very minimal as the remaining stores would most likely be owned by a single large entity and therefore sell the same style of clothing. Quality of service will also be constant throughout the stores due to being all from the same production. The price is where things will be drastically affected since there is a single entity that controls the entire market this means that they can ultimately charge what they want and fewer firms mean that prices will most likely increase.

The selling price for each independent bond issuance is determined using the PV calculations as follows:

1st Bond's Selling Price = $303/26

2nd Bond's Selling Price = $308.87

3rd Bond's Selling Price = $498.49

4th Bond's Selling Price = $282.81

The price of a bond is determined by discounting the expected cash flows to their present value using the discount (market) rate.

This can be achieved by calculating the present value of the bond using the present value annuity factor, table.

We can also use an online finance calculator as follows:

Market rate = 10%

N (# of periods) = 5 years

I/Y (Interest per year) = 10%

PMT (Periodic Payment) = $80 ($1,000 x 8%)

FV (Future Value) = $0

Results:

PV = $303.26

Sum of all periodic payments = $400 ($80 x 5)

Total Interest = $96.74

N (# of periods) = 10 (5 years x 2)

I/Y (Interest per year) = 10%

PMT (Periodic Payment) = $40 ($1,000 x 8% x 1/2)

FV (Future Value) = $0

Results:

PV = $308.87

Sum of all periodic payments = $400 ($80 x 5)

Total Interest = $91.13

N (# of periods) = 20 (10 years x 2)

I/Y (Interest per year) = 10%

PMT (Periodic Payment) = $40 ($1,000 x 8% x 1/2)

FV (Future Value) = $0

Results:

PV = $498.49

Sum of all periodic payments = $800 ($40 x 20)

Total Interest = $301.51

N (# of periods) = 30 (15 years x 2)

I/Y (Interest per year) = 12%

PMT (Periodic Payment) = $30 ($500 x 12% x 1/2)

FV (Future Value) = $0

Results:

PV = $282.81

Sum of all periodic payments = $900 ($30 x 30)

Total Interest = $617.19

Learn more about determining the price of a bond at https://brainly.com/question/15567868

#SPJ1

Answer:

B and C are the same, and none of the answers are correct

Explanation:

Capital gain is the amount of money you earn after selling a property or investment. It's essentially (the price you sold it for) -- (the price you paid for it)

eg if you bought stock for $100 and sold it for $200, you'd have a capital gain of $100 (200-100)

Answer:

$8,240

Explanation:

The computation of the ending inventory using the average cost method under a periodic system is shown below:

But before that first determine the weighted average cost per unit which is

The Weighted average cost per unit

= $41,200 ÷ 5,000  units

= $8.24 per unit

Now the ending inventory is

= 1,000 units × $8.24 per unit

= $8,240

Answer:

$9,000

Explanation:

Calculation for the amount of gross profit that should be recognize

First step is to calculate the

A's sale value = 6,000 unit*12 per unit

A's sale value = $72,000

Second Step is to calculate B's sale value

B's sale value = 14,000 units*4 per unit

B's sale value= $56,000

Third step is to calculate the Total sale value

Total sale value = $72,000 + $56,000

Total sale value= $128,000

Fourth Step is to calculate the Cost of goods sold of A for 6,000 units and 2,000 units

Cost of goods sold of A for 6,000 units = ($72,000/$128,000) * $80,000

Cost of goods sold of A for 6,000 units = 0.5625*$80,000

Cost of goods sold of A for 6,000 units= $45,000

Cost of goods sold of A for 2,000 units = $45,000*2,000/6,000

Cost of goods sold of A for 2,000 units = $15,000

Last step is to calculate the Gross profit of A for 2,000 units

Gross profit of A for 2,000 units = (2,000*12 per units) - 15,000

Gross profit of A for 2,000 units = $24,000 - $15,000

Gross profit of A for 2,000 units = $9,000

Therefore the amount of gross profit that should be recognize will be $9,000

Answer:

In order to determine the Macauly we must complete the following table:

period      cash flow       PV of             Period x            

                                       cash flow      PV cash flow          

1                  $3                 $2.91                 $2.91

2                 $3                 $2.83                $5.66

3                 $3                 $2.75                 $8.25

4                 $3                 $2.67               $10.68

5                 $3                 $2.59               $12.95

6                 $3                 $2.51                $15.06

7                 $3                 $2.44                $17.08

8              $103                $81.31              $650.48

Total                                                        $723.07

Macauly duration = $723.07 / $87 = 8.31

Modified Macauly duration = Macauly duration / (1 + r) = 8.31 / 1.03 = 8.07

Answer: All of the above

Explanation:

A company should endeavour to be socially responsible if it will result in any of the listed circumstances as they are all benefits.

If this would increase the company's competitive advantage it should be embarked on as it would lead to the company having a better position in the market. It can also reduce the cost to the company of reputation damaging incidents.

A company having improved efficiency and workforce retention is a good company and if socially responsible actions will bring that, the company should do it. And with the purpose of a company being to maximise shareholder value, a company should definitely engage in socially responsible actions if there is a high correlation between CSR and stock price.

Answer:

Option D

Explanation:

We can calculate the  equivalent taxable yield of investor facing a 38% marginal tax rate investment as follows

DATA

Tax rate = 38%

After tax yield = 4.25%

Solution

Let's suppose the equivalent taxable yield is x then

x(1-0.38)=4.25

x(0.62)= 4.25

x = 6.85%

Option D would be the correct answer

Answer:

A. select a loan with a low simple interest rate.

Explanation:

A borrower who wants to minimize interest should try to: Select a loan with a low simple interest rate. Because low simple rate provides the lowest rate as compared to other interest.

Interest rate is the amount charge by the lender on the money which is taken by the borrower .  Annual percentage rate is used to calculate the total amount.

In annual percentage rate add fees and discount points, on with the interest rate.

Thus, option A is correct.

For more details about Interest rate, click here:

https://brainly.com/question/13324776

#SPJ2

Answer:

c. The basis is equal to the adjusted basis of the old property

Explanation:

The general rule regarding the exchanged basis in the new property received in a like-kind exchange is the basis is equal to the adjusted basis of the old property. The rule states that the basis of the exchange must be equal to the adjusted basis of the old property.

Answer:

A. Earned.

Explanation:

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when earned. In Accrual Accounting, revenue is recognized when it is earned and is recognizable to be collected in future, not when cash is received against that revenue.

Answer:

a financial statement

Explanation:

Financial statements are a direct product of accounting reporting systems that, in their essence and purpose, reflect performance, ie. performance of the company for a certain period of time, its financial and structural position, as well as the position of liquidity on the selected balance sheet date.

The main purpose of their compilation is reflected in the information service of various interest groups that rely on them in the process of making important decisions, often as the only available source of information. As such, they are prepared and presented at the end of the business year, with the possibility of semi-annual or quarterly reports.

Answer: $‭68,754‬

Explanation:

The Depreciable bases of this asset refers to the total amount that will be recorded as the Cost price of this asset.

Costs to buy, transport and install the asset are all included. Sales tax is included as well;

= 60,050 + 1,123 + 2,128 + 5,453

= $‭68,754‬

This is op's alt account its D

The correct option is D. state government officials review the audit performed by CPA firms for such organizations

The following information should be considered:

Learn more: brainly.com/question/16911495

Answer:

Current account balance= - 1,897 millions

Explanation:

Given:

Exports of goods = 79,186

Imports of goods = 45,765

Exports of services = 33,573

Imports of services  = 46,216

Income received from abroad  = 28,456

Income payments to abroad = 51,571

Unilateral transfers = 440

Find:

Current account balance

Computation:

Current account balance = Exports of goods + Exports of services - Imports of goods - Imports of services + Income received from abroad + Unilateral transfer  - Income payments to abroad

Current account balance = 79186 - 45765 + 33573 - 46216 + 28456 - 51571 + 440

Current account balance= - 1,897 millions

Answer: True

Explanation:

An Oligopolistic market is one where the suppliers are very few in number. Cooperation is indeed difficult in such markets as they are motivated by self-interest to try to make more profits than their competitors.

This usually leads to an undesirable outcome. For instance, if two oligopolistic firms agree on a price to sell goods, one of them might decide to sell at a lower price in order to gain more market share. This will cause the other firm to reduce its prices as well which means that both companies would be worse off than when they started.

Answer:

The correct answer is the option B: Differentiate Pepsi from other types of soft drinks.

Explanation:

To begin with, the fact that the company is using the advertising as its major weapon when it comes to atract consumers and increase the number of sales then they are trying so desperetely to differentiate its brand from the other ones of the competitors and they do it by showing in their advertisements that they are superior to any other. And that strategy, the one of using the marketing campaing as a primary source of getting to the consumers, is in order to achieve a more high look from the point view of the consumers so they put their brand in a higher level regarding the competitors' brands.

Answer:

D) machines and factories; knowledge one picks up through education and training

Explanation:

The physical capital is the capital that has the physical existence i.e. tangible. It could be seen, feel, or even touched. examples like plant, machinery etc

While on the other hand the human capital is intangible it only effects the production and the operations

Like - skills, knowledge, experience of a worker

Therefore the option D is correct