A)

7.55%

B)

9.17%

C)

9.00%

D)

8.00%

Answer:

**Answer:**

**WACC = 7.55 %**

**so correct option is A) 7.55%**

**Explanation:**

**given data **

company raised = $100,000,000

sale of bonds = $50,000,000

current yield = 8%

sale of common stock = $25,000,000

cost equal = 9%

sale of preferred stock =$25,000,000

cost equal = 10%

tax rate = 30%

**to find out **

WACC

**solution**

we get here WACC that is express as

WACC = ( Weight of debt × After tax cost of debt) + (Weight of equity × Cost of equity) + (Weight of preferred stock × cost of preferred stock) ..................1

and cost of debt after tax will be

cost of debt after tax = 8% of ( 1 - 30%)

**cost of debt after tax = 5.6%**

and Weight of debt = = 0.50

and Weight of equity = = 0.25

and Weight of preferred stock = = 0.25

so WACC = ( 0.50 × 0.056 ) + ( 0.25 × 0.09 ) + ( 0.25 × 0.10 )

WACC = 0.0755

**WACC = 7.55 %**

**so correct option is A) 7.55%**

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $168,120. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $22,500 at the beginning of each period Economic life of asset 2 years Fair value of asset $168, 120 Implicit interest rate (Also lessee's incremental borrowing rate) 88 Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.

The following information relates to Jay Co.’s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $650,000 Credit sales for 2016 2,700,000 Sales returns during 2016 75,000 Accounts receivable written off during 2016 40,000 Collections from customers during 2016 2,150,000 Allowance for uncollectible accounts balance, 12/31/2016 110,000 What amount should Jay report for accounts receivable, before allowances, at December 31, 2016?

What are three strategies that you can use to make better financial decisions?

Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession.Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? How large a tax cut would be needed to achieve the same increase in aggregate demand? b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt. Increase spending Increase taxes by

Dorothea orginally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $1,150 and reslae expenses were $1,350. Repossession costs were $2,900. She incurred $1,100 for improvements prior to the resale. What is Dorothea's recomputed gain?

The following information relates to Jay Co.’s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $650,000 Credit sales for 2016 2,700,000 Sales returns during 2016 75,000 Accounts receivable written off during 2016 40,000 Collections from customers during 2016 2,150,000 Allowance for uncollectible accounts balance, 12/31/2016 110,000 What amount should Jay report for accounts receivable, before allowances, at December 31, 2016?

What are three strategies that you can use to make better financial decisions?

Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession.Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? How large a tax cut would be needed to achieve the same increase in aggregate demand? b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt. Increase spending Increase taxes by

Dorothea orginally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $1,150 and reslae expenses were $1,350. Repossession costs were $2,900. She incurred $1,100 for improvements prior to the resale. What is Dorothea's recomputed gain?

Budgeted diving-hours (q) 350

Revenue ($420.00q) $ 147,000

Expenses:

Wages and salaries ($11,500 $130.00q) 57,000

Supplies ($4.00q) 1,400

Equipment rental ($2,200 $25.00q) 10,950

Insurance ($3,900) 3,900

Miscellaneous ($510 $1.44q) 1,014

Total expense 74,264

Net operating income $ 72,736

Required:

During May, the company’s actual activity was 340 diving-hours. Compute the flexible budget of activity.

**Answer:**

operating income 84740.4

**Explanation:**

The flexible budget will work out the numbers for a level of activity of 340 units

Revenue $420 x 340 = 142,800

Wages and salaries $11,500 fixed component + $130 x 340 = 55,700

Supplies $4.00 x 340 = 1,360

Insurnace (fixed) $3,900

Miscellaneous $510 fixed component + $1.44 x 340 = 999,6

Operating Income:

Revenues 142,800

total expenses __ (58,059.6) __

operating income 84740.4

**Answer:**

Harper investment 160,000

building over fair value 16,000

royalty over fair value 34,000

cash 200,000

----

**2017 entries:**

loss on Harper Investment 32,000

Harper investment 32,000

---

Cash 4,000

Harper investment 4,000

----

Unrealized gain 2,000

Harper Investment 2,000

---

royalty over fair value 1,700

bulding over fair value 1,600

harper investment 3,300

---

**2018 entries:**

Harper Investment 16,000

Gain on Harper Investent 16,000

----

Cash 4800

Harper investment 4800

----

Unrealized gain 1,600

Harper Investment 1,600

---

royalty over fair value 1,700

bulding over fair value 1,600

harper investment 3,300

**Explanation:**

400,000 x 40% = 160,000

40,000 increase infair value of building x 40% = 16,000

royalty 85,000 x 40% = 34,000

total equity value 200,000

payment of 200,000

no goodwill.

**amortization:**

building: 16,000 / 10 = 1,600

royalty: 34,000 / 20 = 1,700

**2017**

loss: 60,000 x 40% = (32,000)

dividends 10,000 x 40% = (4,000)

unrealized gain: it kept 15,000/90,000 = 0.1667 = 16.67%

90,000 - 30,000 = 30,000 gain x 16.67% = 5,000 unrealized gain

5,000 x 40% = **2,000**

**2018**

income 40,000 x 40% = 16,000

dividends 12,000 x 40% = (4,800)

unrealized gain kept 30%

80,000 - 50,000 = 30,000 x 30% = 9,000

the company has 40% so 9,000 x 40% = 3,600 unrealized

as we recognize 2,000 before we adjust for the difference of 1,600

The mean depression level for the first group is μ₁= 16.

The mean depression level for the second group is μ₂ = 12

The **weighted mean** is__ closer__ to 12 than to 16.

The calculated weighted mean for CES-D is **13.5**

The calculated weighted mean for MAST is __17.25 ≈ 17.0 __ rounded to 17.

Calculating the weighted mean μ

μ= {where x1 =μ₁ and x2= μ₂ }

μ= 16×6 + 10×12/ 6+10

μ= 216/16

μ= 13.5

The first group has a mean score of μ₁= 18.

The second group has a mean score of μ₂ = 14

Calculating the weighted mean μ

{where x1 =μ₁ and x2= μ₂ ; w1= number of women in the first group and w2= number of women in the second group}

μ=

μ= 18×6 + 14×12/ 6+10

μ= 276/16

μ= 17.25≈ 17

The answer & explanation for this question is given in the attachment below.

**Answer:**

Direct labor rate variance= $12,575 unfavorable

**Explanation:**

Giving the following information:

Last year, the company’s direct labor payroll totaled $352,100 for 50,300 direct labor hours. The standard wage rate is $6.75 per direct labor hour.

**To calculate the direct labor rate variance, we need to use the following formula:**

**Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity**

Actual rate= 352,100/50,300= $7 per hour

Direct labor rate variance= (6.75 - 7)*50,300

Direct labor rate variance= $12,575 unfavorable

**Answer:**

The rate of change in 6 months is 14.87%

**Explanation:**

Let a be the amount that the money is multiplied in one month. We know that in 30 months it is multiplied by 2, so if we power a by 30 wew obtain 2:

a³⁰ = 2

Thus, 2 = a³⁰ = a⁶*⁵ = (a⁶)⁵

(here we use the propiety a^bc = (a^b)^c = (a^c)^b)

We can conclude that a⁶ = 2^(1/5) = 1.1487

The rate in 6 months is (1.1487-1)*100 = **14.87%**

**Answer:**

14.86% every 6 months

**Explanation:**

Let the original amount be a

An investment offers to double your money in 30 months i.e. 2a in 30 months

Fv = Pv (1 + x)ⁿ

Fv future value (i.e. future value of the cash flow after a particular time period. )

Pv Present value

x interest

n number of compounding period

Fv = Pv (1 + x)ⁿ

2a = a (1 + x)^(30/6)

2^(1/5)= 1 + x

1.1486 = 1 + x

x = 0.1486 0r 14.86%

Answer: a. in the short run but not in the long run

Explanation:

The Short Run is usually considered in Economics/ Business as a point in time where at least ONE factor of production is FIXED. This factor is usually the Factory because it is hard to change the capacity of a Factory in the Short run. For instance a wing might need to be constructed. Labour on the other hand is considered variable in the Short run though because more people can be hired and the people already hired can put in more overtime.

The Long Run is classified as a point where EVERY factor of production is Variable. There is enough time to even change the capacity of a Factory. So here even Factory is Variable.