Answer:
Folly Beach has long been the epicenter of fun and sun for generations of College of Charleston students.
Taylor Denny (left), Jake Cotreau (center) and Matthew Coda (right).
Taylor Denny (left), Jake Cotreau (center) and Matthew Coda (right).
But for three recent graduates, the quirky little beach town is all about business.
By the time alumni Matthew Coda, Jake Cotreau and Taylor Denny walked across the Cistern stage to receive their diplomas in May 2014 they already knew how and where they planned to begin their careers.
This month the three young entrepreneurs launched Golden Sun Taxi, a fleet of three solar-powered, golf cart taxis that shuttle passengers along the sandy streets of Folly Beach. Aimed primarily at tourists, the business is believed to be the first of its kind in the United States.
If a company increases its prices from $2 to $2.20, and its sales fall from 5 million units to 4.5 million units, using the midpoint method, what is the price elasticity of demand for this market?
a. 1
b. 1.5
c. 2
d. 0.5
Answer:
-1.10526
Explanation:
The computation of the price elasticity of demand is shown below:
Price elasticity of demand is
= (Change in quantity demanded ÷ average of quantity demanded) ÷ (Change in price ÷ average of price)
where,
q1 = 5
q2 = 4.5
p1 = $2
p2 = $2.2
So,
= {(4.5 - 5) ÷ (4.5 + 5) ÷ 2} ÷ {(2.2 - 2) ÷ (2.2 + 2) ÷ 2 }
= {-0.5 ÷ 4.75 } ÷ {0.2 ÷ 2.1 }
= -0.10526 ÷ 0.0952
= -1.10526
Discarded materials
0 / 1 pts Your firm has a potential project that will cost $5,000 now to begin. The project will then generate after-tax cash flows of $900 at the end of the next three years and then $1400 per year for the three years after that. If the discount rate is 8% then what is the PI
Answer:
PI=103.67%
Explanation:
Calculation for PI
To calculate PI (PROFITABILITY INDEX) the first step is to calculate the NPV ( Net present value) using Financial calculator by following the below step
CF0= -$5,000
C01=$900
FO1=3years
CO2= $1,400
FO2=3 years
NPV=?
I=8%
The next step is to enter the down arrow Cpt
Hence,
NPV = $183.48
Since we have know the NPV Now let calculate the PI using this formula
PI=(NPV+Potential project)/Potential project
Let plug in the formula
PI= ($183.48+$5,000)/$5,000
PI=$5,183.48/$5,000
PI= 1.03669*100
PI=103.67%
Therefore the PI will be 103.67%
Walters manufactures a specialty food product that can currently be sold for $21.90 per unit and has 19,900 units on hand. Alternatively, it can be further processed at a cost of $11,900 and converted into 11,900 units of Deluxe and 5,900 units of Super. The selling price of Deluxe and Super are $31.10 and $19.90, respectively. The incremental income of processing further would be:_______.
a. $39,790.
b· $51,690.
c· $17,900.
d· $43,900.
e· $11,900.
Answer:
a. $39,790.
Explanation:
The computation of the incremental income of processing further is shown below:
Sales - Deluxe - 11,900 Units × $31.10 $370,090
Sales - Super - 5,900 Units × $19.90 $117,410
Total Sales $487,500 (a)
Further Processing Costs $11,900
Sale Price of speciality Food $435,810
19,900 Units × $21.90
Total $447,710 (b)
Net Incremental Income $39,790 (a - b)
Hence, the correct option is a.
MCQS
(i) Compensation of employees includes ________.
(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans
(b) wages, salaries and taxes
(c) wages, salaries taxes and zakat
(d) non of the above
(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------
(a) Net Factor Income from Abroad
(b) Capital Consumption Allowances
(c) Depreciation
(d) None of these
(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is
(a) 812.5
(b) 975
(c) 1030
(d) 980
(iv) What of the following does NOT enter GDP?
(a) Public Service
(b) Public education
(c) Life Expectancy
(d) National Defence
(v) The sum of all kinds of income received by the individuals from all sources is called---------
(a) Personal Income
(b) Private Income
(c) Personal Disposable Income
(d) None
Answer:
MCQS
(i) Compensation of employees includes ________.
(a) wages, salaries, fringe benefits, Social Security contributions, and health and pension plans .
(ii) The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as-------
(a) Net Factor Income from Abroad .
(iii) Suppose that in year 1 an economy produces 75 unit of apple that sell for $5 each and 100 mobile that sell for $6 each. The next year the economy produces 110 apple that sell for $3.75 each and 80 mobile that sell for $5 each. The real GDP is
(c) 1030 .
(iv) What of the following does NOT enter GDP?
(c) Life Expectancy.
(v) The sum of all kinds of income received by the individuals from all sources is called---------
(a) Personal Income.
Explanation:
1) Employee Compensation includes the salaries, wages, benefits, and other incentives paid to employees in exchange for their services to the company.
3) The Net factor income from abroad is the difference between the factor income earned from abroad by normal US residents and the factor income earned by non-residents (foreigners) in the US domestic territory.
4) The real GDP is the gross domestic product adjusted for the effect of inflation on prices. The real GDP for year 2 should be based on the prices of year 1 and is calculated as follows (110 * 5 + 80 * 6 = 1030).
5) Personal income is the sum of all kinds of income received by the individuals from all sources. It is used in the calculation of the US GDP. It is a subset of private income. Private income, which is broader than personal income, consists of personal income, profit tax, and undistributed profit.
Which sentences explain the limitations of financial statements?
Financial Statements – Limitations
The business’s balance sheet, income statement, cash flow statement, and statement of retained earnings are some of the important financial statements. Financial statements are used for comparisons of the performance of companies belonging to similar industries. Estimates used for calculating financial statements are subjective as they involve management’s foresight to arrive at different values. Historical data is most commonly used to measure assets. The opportunity cost of using the assets are not taken into account while preparing financial statements.
Answer: Limitations
The business’s balance sheet, income statement, cash flow statement, and statement of retained earnings are some of the important financial statements.
Explanation:
The limitations of financial statements are "Estimates used for calculating financial statements are subjective as they involve management’s foresight to arrive at different values."
Financial statements are written documents that communicate an entity's business activity and financial performance.
As a snapshot in time, the balance sheet gives an overview of assets, liabilities, and shareholders' equity.
Because the statements are susceptible to interpretation, investors frequently get dramatically different conclusions about a company's financial success.
Therefore, the correct option is "Estimates for financial statements are subjective since they rely on management's foresight to arrive at varied values."
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Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 545,000 units during next year, the number of units it would have to manufacture during the year would be:________
a) 492,000 units
b) 545,000 units
c) 575,000 units
d) 515,000 units
Answer: d. 515,000 units
Explanation:
If they plan to sell 545,000 units then given those beginning and ending balances of finished goods, they will have to manufacture;
= Sales + Ending balance - Beginning balance
= 545,000 + 63,000 - 93,000
= 515,000 units
what is the second largest country in the world ?
1.russia
2.china
3.canada
Answer:Canada
Explanation:
A monopolist can sell 10,000 units at a price of $5 per unit. Lowering price to all buyers by $1 raises the quantity demanded by 1,000 units. What is the change in total revenue resulting from this price change?
Answer:
the revenue decreases by -$6000
Explanation:
The computation of the change in revenue is shown below:
Total revenue at Price is 5
Now total revenue is
= $5 × 10,000 units
= $50,000
Total revenue at Price is 4
Now Total Revenue is
= $4 × 11,000
= $44,000
Now the difference is
= $44,000 - $50,000
= -$6,000
Hence, the revenue decreases by -$6000
For a soft drink compant, dividing the market up based on fashion preferences is an example of which segmentation variable?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
Answer:
The correct answer is the option C: Psychographic
Explanation:
To begin with, in the field of marketing the term known as segmentation refers to the strategy of dividing the target market into different groups that characterizes themselfs because of having common features in their lifestyles of something like that for example. So when segmentation takes place there are different types of it, the psychographic segmentation is the one that focus on the psycological part of the people and their common likes, attitudes, aspirations and more. Therefore that one they are segmentating according to fashion preferences they are doing a psychographic segmentation
Firm A issued a $1,000,000 bond with a 20-year term at a discount. If the remaining amount of the discount on bonds payable is $100,000 after 10 years and firm A retires the bond at this point at 110 (or for cash of $1,100,000), then what is the loss/gain on this bond retirement?
Answer:
Loss of $200,000
Explanation:
Carrying value of bond = $1,000,000 - $100,000
Carrying value of bond = $900,000
Cash paid on bonds = $1,100,000
Loss on bond = Cash paid on bonds - Carrying value of bond
Loss on bond = $1,100,000 - $900,000
Loss on bond = $200,000
If you have to reject a job offer because it isn't what you wanted, what is the best step to take?
a.
Say no at the interview to save the employer time
b.
Do not call the interviewer back
c.
Call the interviewer back, thank them, and give a reason for your answer
d.
Call the interviewer and let them know you would never work for them
Answer:
Call the interviewer back, thank them, and give a reason for your answer
Explanation:
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:
Molding Fabrication Total
Machine-hours 23,000 33,000 56,000
Fixed manufacturing overhead costs $790,000 $200,000
$990,000
Variable manufacturing overhead cost per machine-hour $5.60 $5.60
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:
Job D-70: Molding Fabrication Total
Direct materials cost $ 371,000 $ 328,000 $ 699,000
Direct labor cost $ 240,000 $ 160,000 $ 400,000
Machine-hours 16,000 7,000 23,000
Job C-200: Molding Fabrication Total
Direct materials cost $ 290,000 $ 210,000 $ 500,000
Direct labor cost $ 100,000 $ 240,000 $ 340,000
Machine-hours 7,000 26,000 33,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?
d. What is Delph's cost of goods sold for the year?
Answer:
Delph Company
a) Plantwide predetermined overhead rate = $17.68
b) The total manufacturing cost assigned to:
Job D-70 Job C-200
Direct materials cost $ 699,000 $ 500,000
Direct labor cost 400,000 340,000
Manufacturing overhead 720,789 582,811
Total manufacturing cost $ 1,819,789 $ 1,422,811
c) Bid Prices:
Job D-70 Job C-200
150% of total manufacturing cost $2,729,683.50 $2,134,216.50
d) Cost of goods sold:
Job D-70 $ 1,819,789
Job C-200 $ 1,422,811
Total $3,242,600
Explanation:
a) Data and Calculations:
Molding Fabrication Total
Machine-hours 23,000 33,000 56,000
Fixed manufacturing overhead costs $790,000 $200,000 $990,000
Variable overhead cost per machine-hour $5.60 $5.60
Molding Fabrication Total
Job D-70
Direct materials cost $ 371,000 $ 328,000 $ 699,000
Direct labor cost $ 240,000 $ 160,000 $ 400,000
Machine-hours 16,000 7,000 23,000
Job C-200
Direct materials cost $ 290,000 $ 210,000 $ 500,000
Direct labor cost $ 100,000 $ 240,000 $ 340,000
Machine-hours 7,000 26,000 33,000
Plantwide predetermined overhead rate based on machine-hours:
= $990,000/56,000
= $17.68
Manufacturing overhead costs:
Molding Fabrication Total
Fixed manufacturing overhead costs $790,000 $200,000 $990,000
Variable manufacturing overhead 128,800 184,800 313,600
Total manufacturing overhead costs $918,800 $384,800 $1,303,600
Overhead rate
Molding = $39.9478 ($918,800/23,000)
Fabrication = $11.6606 ($384,800/33,000)
Assignment of manufacturing overhead:
Job D-70 Job C-200
Molding $639,165 $279,635
Fabrication 81,624 303,176
Total $720,789 $582,811
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a.variable cost of goods sold b.fixed manufacturing costs c.variable selling and administrative expenses d.fixed selling and administrative expenses
Answer:
c. variable selling and administrative expenses
Explanation:
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the variable selling and administrative expenses. Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.
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Emma is a biomedical engineer who designs robots that perform intricate surgeries. Into which two career clusters that we have considered so far could Emma’s job fall? Give a reason for your choices.
Answer:
I believe this would be in the Engineering and technology pathway.
Explanation:
Examples of someone in a engineering and technology pathway are people like Biomedical engineers so it makes sense!
Currently, Cathy's Shirt Shop sells 498 units a month at an average price of $98 a unit. The company thiks it can increase sales by an additional 140 units a month if it switches to a net 30 credit policy. The monthly interest rate is .45 percent and the variable cost per unit is $55. What is the incremental cash inflow of the proposed credit policy switch?
Answer:
$6,020
Explanation:
Calculation for the incremental cash inflow
Using this formula
Incremental cash flow=(Average price per units-Variable cost per unit)*Additional units
Let plug in the formula
Incremental cash flow = ($98 - $55)*140 units
Incremental cash flow=$43*140 units
Incremental cash flow= $6,020
Therefore the incremental cash inflow will be $6,020
1. If rs increases to 10%, what would be the value of the constant growth stock? (Note: D0 is $1.15 and the expected constant growth rate g = 4%.)
Answer: 19.93
Explanation:
The constant growth stock is $19.16. P = D/(r-g), where P is the current price, D is the next dividend to be paid, g is the expected dividend growth rate, and r is the required rate of return for the company.
What is a Constant growth rate?
A constant growth rate is defined as the average rate of return on investment over the time period required to achieve the total growth percentage that an investor seeks.
Given
Rate (r) = 10%
Growth (g) = 4%
Dividend (D) = $1.15
Required to calculate growth stock =?
growth stock P = D/(r-g)
growth stock = 1.15 / (10 - 4) = $19.16
Thus, the constant growth is $19.16. A constant growth rate is defined as the average rate of return on an investment during the time period required to achieve the total growth percentage desired by the investor.
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A Reuter's article on March 14, 2012 reported that Somali pirates had decided to cut their ransom demands so as to avoid costly hostage maintenance and increase flow rate. The article says that on average the pirates were holding 30 ships hostage, and each ship was held for 150 days.How many ships on average are the pirates capturing each month? (Assume a month is 30 days)- 10 ships per month- 30 ships per month- 6 ships per month- 1/5 ships per month
Answer:
6 ships per month
Explanation:
30 ships are held for 150 days
[tex]30\ \text{ships}=150\ \text{days}[/tex]
[tex]1\ \text{day}=\dfrac{30}{150}\ \text{ships}[/tex]
[tex]1\ \text{day}=\dfrac{1}{5}\ \text{ships}[/tex]
[tex]30\ \text{days}=30\times \dfrac{1}{5}\ \text{ships}[/tex]
[tex]30\ \text{days}=6\ \text{ships}[/tex]
So, in a month 6 ships are captured.
what is business ?please explain about it
Answer: business can be defined as an organization dedicated to do commercial and professional activities.
Explanation:
The word business can also be defined as the activities and efforts that a person makes in order to produce money. To do this, the person creates products or sells services to obtain a reward.
Currently, many people are taking the line of entrepreneurship, where they put their own businesses and become their bosses. They themselves develop their model of how they are going to distribute and market the products or services they have so that they reach the population.
The business is something that comes from ancient times. Barter was a way of doing business since if a person was interested in something that another had, they proceeded to make an exchange.
Jake Shirt Co. used 5,300 square yards of polyester to produce 3,000 shirts. The standard quantity of material for the 3,000 shirts produced is 6,100 square yards. The standard price for direct materials is $4.00 per square yard. The entry to record the direct materials quantity variance would include a:_____________
a. debit to Direct Materials Quantity Variance for $3,200.
b. credit to Direct Materials Quantity Variance for $3,200.
c. debit to Direct Materials Quantity Variance for $12,000.
d. credit to Direct Materials Quantity Variance for $12,000.
Answer:
b. credit to Direct Materials Quantity Variance for $3,200.
Explanation:
Direct material quantity variance = Standard quantity - Actual quantity * Standard price for direct material
Direct material quantity variance = (6,100 - 5,300) * $4
Direct material quantity variance = 800 * $4
Direct material quantity variance = $3,200 Favorable
The entry to record the direct materials quantity variance would include a credit to Direct Materials Quantity Variance for $3,200
____ demonstrates that management has identified an acceptable risk level and provided resources to control unacceptable risk levels.
Answer:
Accreditation
Explanation:
Accreditation is usually known as voluntary process. It occurs when a private non-governmental organization or agency carry out an external review and gives recognition to a program of study or institution that meets certain pre-determined standards. Accreditation is usually carry out thoroughly and in an organized manner.
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that:A. the firm will select only all-equity financed projects.B. stockholders expropriate value from bondholders by selecting high-risk projects.C. the firm will always select the lowest-risk project available.D. bondholders expropriate value from stockholders by selecting high-risk projects.E. the firm will rank all projects and select the project which results in the highest expected firm value.
Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.
Explanation:
Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.
Therefore, option B is the answer.
Based on the following information, calculate the cost of goods sold and ending inventory using FIFO, LIFO, and weighted average assuming a perpetual inventory system is in place.
Beginning Balance - 90 units at $11
March 3 - Purchase 300 units for $15
April 4 - Sell 240 units for $28
June 30 - Purchase 250 units for $18
August 16 - Sell 180 units for $30
Answer:
Cost of Sales :
FIFO = $ 6,030
LIFO = $6,840
Weighted Average = $6,354.60
Ending Inventory :
FIFO = $4,176
LIFO = $3,150
Weighted Average = $3,636.60
Explanation:
FIFO
This method assumes that the first inventory purchased will be the first to be sold
Cost of Goods Sold :
90 units × $11 = $990
150 units × $15 = $2,250
150 units × $15 = $2,250
30 units × $18 = $540
Total = $ 6,030
Ending Inventory :
232 units × $18 = $4,176
LIFO
This method assumes that the last inventory purchased, will be the last to be sold
Cost of Sales :
240 units × $15 = $3,600
180 units × $18 = $3,240
Total = $6,840
Ending Inventory :
90 units × $11 = $ 990
60 units × $15 = $ 900
70 units × $18 = $ 1,260
Total = $3,150
Weighted Average
A new average cost per unit is calculated with every purchase made.
New Average Cost = (90 units × $11 + 300 units × $15) ÷ 390 units
= $14.08
Cost of Sale , April 4 = 240 units × $14.08
= $3,379.20
New Average Cost = (150 units × $14.08 + 250 units × $18.00) ÷ 400 units
= $16.53
Cost of Sale, Aug 16 = 180 units × $16.53
= $2,975.40
Total Cost of Sales = $3,379.20 + $2,975.40
= $6,354.60
Ending Inventory = 220 units × $16.53
= $3,636.60
The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 26 percent of its business on Friday night, 34 percent on Saturday night, and 24 percent on Thursday night. What seasonal relatives would describe this situation?
Answer: See Explanation
Explanation:
The work done for each day is written below:
Thursday night = 24%
Friday night = 26%
Saturday night = 34%
Wednesday night = 100% - (24% + 26% + 34%) = 100% - 84% = 16%
Let's assume that sales in a week is represented by x. Therefore average sales in week if x = 1 will be 1/4 = 0.25.
Seasonal relative will be:
= Sales in a day /Average sales in a week
Wednesday = 16% / 0.25 = 0.16 / 0.25 = 0.64
Thursday = 24% / 0.25 = 0.96
Friday = 26% / 0.25 = 1.04
Saturday = 34% / .25 = 1.36
What are the annual social security withholding for an executive whose annual gross earnings are $98,485?
Answer:
$6,106.07
Explanation:
Calculation for the annual Social security withholding
Based on the information given the annual gross earnings are the amount of $98,485 which is lower than the taxable maximum of the amount of $137,700 in 2020 as well as the amount of $142,800 in 2021 which means that the annual social security withholding will be :
Using this formula
Annual Social security withholding =6.2%*Annual gross earnings that is subject to a taxable maximum
Let plug in the formula
Annual Social security withholding= 6.2%*$98,485
Annual Social security withholding= $6,106.07
Therefore the Annual Social security withholding will be $6,106.07
Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.
What was the firm's ROE?
a. 12.79%
b. 13.47%
c. 14.18%
d. 14.88%
e. 15.63%
Answer:
ROE = 0.14175 or 14.175%
Explanation:
The DuPont equation to calculate ROE or return on equity breaks the ROE into three components namely Net Income or Net Profit margin, Total assets turnover and equity multiplier. This is used to see what factor are affecting the Return on Equity generated by the business. ROE under DuPont can be calculated as follows,
ROE = NI Margin * Total Assets Turnover * Equity Multiplier
ROE = 0.0525 * 1.5 * 1.8
ROE = 0.14175 or 14.175%
Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $690,000 and cost of goods sold is 40% of sales. The expected selling expenses are $77,000 and the expected general and administrative expenses are $86,000, which includes $19,000 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:__________
a) $414,000.
b) $175,700.
c) $251,000
d) $84,900.
e) $75,300.
Answer:
b. $175,700
Explanation:
Calgary Industries's budgeted net income for 2018 is computed as per the information above;
Sales
$690,000
Variable costs
(40% × $690,000)
($276,000)
Selling expenses
($77,000)
Administrative expenses
($86,000)
Earnings before taxes
$251,000
Income tax expense
(30% × $251,000)
($75,300)
Net income
$175,700
Keith Company paid Major Company for merchandise with an $8,000, 60-day, 9% note dated April 1. If Keith Company pays the note at maturity, what entry should Major make at that time?a. cash 8,720 720 interest income 8,000 notes receivable b. notes payable 8,000 720interest expense 8,720 cashc.cash 8,120 interest income 120 notes receivable 8,000 d. notes payable 7,880 interest expense 120 cash 8,000
Answer:
c.Dr Cash 8,120
Cr Interest income 120
Cr Notes receivable 8,000
Explanation:
Based on the information we were told that the Company paid another company which is Major Company for merchandise with an amount of $8,000 which includes 60-day as well as 9% note dated April 1 which means that if Keith Company pays the note at maturity the journal entry that Major should make at that time will be:
Dr Cash 8,120
(8,000+120)
Cr Interest income 120 (8,000*9%/360*60)
Cr Notes receivable 8,000
Your firm has a debt-equity ratio of .75. Your pre-tax cost of debt is 8.5% and your required return on assets is 15%. What is your cost of equity if you ignore taxes? (Use MM Prop II, No Tax).
A. 11.25%
B. 12.21%
C. 16.67%
D. 19.88%
E. 21.38%
Answer:
D. 19.88%
Explanation:
The computation of the cost of equity is shown below:
Cost of equity = Return on assets + Debt equity ratio × (Return on assets -pre tax cost of debt)
= 0.15 + 0.75 × (0.15 - 0.085)
= 0.19875 or 19.88%
Hence, the correct option is D. 19.88%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Research and development costs:____________
a. Generally pertain to activities that occur prior to the start of production.
b. May be expensed or capitalized, at the option of the reporting entity.
c. Must be capitalized and amortized.
d. None of these responses are correct.
Answer:
b. May be expensed or capitalized, at the option of the reporting entity.
Explanation:
The research and development cost is the cost that are incurred for researching and developing a new product, new process, new project
It may be expense or it may be capitalized. Its totally depend on the management of the firm decisions
Therefore the option b is correct and the same is to be considered