CHAPTER 11: THE COST OF CAPITAL LEARNING GOALS: 1. Understand the key assumptions‚ the basic concept and the specific sources of capital associated with the cost of capital. 2. Determine the cost of long-term debt and the cost of preferred stock. 3. Calculate the cost of common stock equity and convert it into the cost of retained earnings and the cost of new issues of common stock. 4. Calculate the weighted average cost of capital (WACC) and discuss alternative weighing schemes
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Generally‚ the term cost of production refers to the ‘money expenses’ incurred in the production of a commodity. But money expenses are not the only expenses incurred on the production of a commodity. There are number of services and inputs such as entrepreneurship‚ land‚ capital etc.‚ which are offered by an entrepreneur without changing any price or receiving any payment for them. While computing the total cost of production‚ allowance should be made for such expenses. It is therefore essential
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------------------------------------------------- ASSIGNMENT ON COST CONTROL AND COST REDUCTION ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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INTERNATIONAL B-SCHOOL SUBJECT: FINANCIAL & COST ACCOUNTING Total Marks: 80 N.B.: 1)Allquestionsarecompulsory 2) All questions carry equal marks. Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition‚ ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10‚000
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SONGWRITER (AKA MUSIC PUBLISHING) INCOME STREAMS In today’s world your songs can generate money and royalties via the traditional “Physical/Analog” music industry or the new “Digital” music industry. There are in fact a minimum of 13 different and specific ways that you as a songwriter can make money off of your songs. Note – each income stream and type of royalty is generated from both the original recording of a song (i.e. the Beatles’ version of Paul McCartney’s song “Yesterday”) or off of a
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marketing news analysis for MN2061K‚ three tasks were assigned to practice and understand the importance of time management for future project deadlines. The deadlines for the three tasks are as follows: Task 1: 6th June‚ 2013 Task 2: 27th June‚ 2013 Task 3: 4th July‚ 2013 As taught in Topic 2 Time Management‚ it is recommended to complete any given projects a few days before the deadlines to ensure that sufficient time is allocated if any issue arises. As shown above in the time plan for
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more exclusive lines than any other store in the South.”2 The ambitious founders decided to not compete directly with other sellers of women’s clothing‚ but to create a new retail option for women in the South. They perceived a gap in the 1 The terms “customer” and “client” are used interchangeably at Neiman Marcus. Since the Neiman Marcus brand signifies professional selling‚ “client” is used more frequently for the best‚ i.e.‚ highest-spending‚ customers. 2
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to school and must perform well in the class but some of the students are having hard time‚ one of the reasons is the distance of their house from their school which may result to negative effects on them like being tardy in the class. Some of the costs of being tardy may be emotional stress‚ lack of time management‚ and loss in personal activities. Fulfilling needs may be beneficial‚ and denying these would be costly. If the students knew the relationship between the proximity of
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following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3‚067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machinehours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be: A. $4‚571 B. $3‚757 C. $3‚090 D. $3‚427 Applied manufacturing
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Opportunity costs The first opportunity cost that I made was choosing to enroll in a university that offers online courses or going to a traditional university that only has classroom style learning. The pros of attending online for me included not having to commute back and forth 40 additional miles per day‚ not having to hire a babysitter for my child‚ and I’d be in the comfort of my own home or environment to my liking when I studied. The cons included‚ not having that social connection to my
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