40 a- Cost of goods manufactured = Direct cost + Indirect cost = [Direct Cost of Material + Direct Cost of Labor] + [Indirect Cost of Material + Indirect Cost of Labor + Utilities Overhead] = Total Cost of Material + Total Cost of Labor + Utilities Overhead = 120‚000 + 90‚000 + 40‚000 = $ 250‚000 b- Total Cost of Operation = Cost of goods manufactured + Selling‚ General admin. and expenses. = 250‚000 + 60‚000 = $ 310‚000 c- Prime Cost =Direct Material Cost + Direct Labor
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Manufacting is 50% common stock‚ 15% preferred stock‚ and 35% debt. If the cost of common equity for the firm is 19.6%‚ the cost of preferred stock is 12.9% and the before tax cost of debt is 9.5% what is the weighted average cost of capital? The firm’s tax rate is 35%. Answer: WACC = (50% x 19.6%) + (15% x 12.9%) + ( 35% x 9.5% x 65% = Q2: The following are the information of a company: |Type of capital |Book value (Tk) |Market value (Tk) |Specific cost (%) | |
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ACT 510 November 19‚ 2013 Do You Know Your Cost of Capital? Investing capital dollars drives the corporate strategy to newer heights in this age‚ where the business is dependent upon making sound decisions that financially intertwine for further growth and development. Within any financial team‚ analyses should be conducted uniformly across the board‚ arriving at a conducive return on investments to solidify the reasoning behind completing the future project. As Jacobs & Shivdasani point
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ECON 405: Quantitative Finance CAPM and APT In this document‚ I use the package ”gmm”. You can get it the usual way through R or though the development website RForge for a more recent version. For the latter‚ you can install it by typing the following in R: > install.packages("gmm"‚ repos="http://R-Forge.R-project.org") The data I use come with the package and can be extracted as follows: > > > > library(gmm) data(Finance) R > > > > Rm F) 0.70956 0.70956 0.70956 0.70956 They use a particular
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|Determine the primary activities and secondary activities of your organisation. Make a conscious| |decision on whether your organization should compete by the least cost strategy or the product | |differentiation strategy. Determine the cost drivers of the organisation. Provide strategic | |suggestions on how your organization can use this information to compete. | | | |
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There is emerging research on how the Internet can be an important component of a program that significantly increases student learning. This type of program requires students and teachers to have appropriate access to the Internet and instruction in its use. It also requires changes in curriculum content‚ instructional practices‚ and assessment to take advantage of the communication and information storage and retrieval strengths of the Internet‚ and to appropriately assess the types of learning
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Creation: The Six DCF Pointers When trying to decide the value of a particular company‚ let’s say Apple for example‚ it is crucial to understand what determines its investing value. Valuing a huge corporation is not simply taking a look at the balance sheet and income statement and figuring out what’s total assets and total liabilities. A discounted cash flow analysis is one of the main ways investors can value a company. The idea of the actual valuation is to project future cash flows and discount
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Your genes are not your destiny. In the latest mega-study‚ researchers at King’s College London‚ followed over 13‚000 pairs of twins over a period of 12 years and came up with a genetic and environmental hotspot map showing that the weighting given to genetics versus environment in one’s development is strongly influenced by one’s geographic location. At first blush‚ these findings sound fairly obvious. After all‚ isn’t the whole point of nature versus nurture to show that environment plays as
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Is the Telephone Company Violating Your Privacy? Question 1: Do the increased surveillance power and capability of the US government present an ethical dilemma? Explain your answer. Question 2: Apply an ethical analysis of the issue of US government’s use of the communications data to fight terrorism. Question 3: What are the ethical‚ social‚ and political issues raised by the US government creating massive database to collect the calling data of millions of Americans? Answer 1‚ 2 and 3
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CAPM is a model which enables investors to determine the expected return from a risky security. It observes the relationship between the risk of an asset (Mobil Oil) and its return. The model uses Beta as the main measure of risk. This model works under the following situations: • In a perfectively competitive market where they are many price-takers’ investors‚ who have a small market share each. • Investors behaviour is myopic • Also investments included in the model are publicly
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