A specialized piece of equipment closely associated with a mine is most likely to be depreciated over a shorter than normal useful life because the
a. equipment will be fully utilized.
b. income tax laws require that a shorter life be used.
c. equipment contains certain defects.
d. mine is expected to be fully depleted in the shorter length of time.
D
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Which of the following is a characteristic of an inter-enterprise information system?
A. It does not require users to have any formal training. B. Its problem solutions affect multiple organizations. C. It is flexible and easily adaptable to organizational changes. D. It increases data duplication among departments. E. It supports 10-100 users.
The following data is given for the Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22 per hour Standard hours allowed per completed unit 6.6 Actual labor
hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. The direct labor rate variance is: A) 6,000U B) 6,000F C) 33,000F D) 33,000U
In 2013, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS will be considered valid if it directly advances a substantial government interest
a. but goes no further than necessary to achieve its purpose. b. without regard to how "far" it goes. c. and the parties affected by it can elect how "far" to go in applying it. d. and goes further than necessary to ensure full coverage.
As a newly hired financial analyst, your first job at VersaLife Corporation is to calculate the company's cost of capital
The present capital structure, which is considered optimal, is as follows: Market Value Debt $80 million Preferred Stock $10 million Common Equity $110 million Total Capital $200 million If VersaLife Corporation issues new debt, then the bond market expects a yield of 7.5%. Preferred stock is trading for $96, has a $100 par value and pays an annual dividend of 8% (the next dividend is due in one year). Common equity has a beta of 1.20, the market risk premium is 5%, and the risk-free rate is 3%. If the firm's tax rate is 40%, what is the weighted average cost of capital? Round answers to the nearest tenth. A) 7.2% B) 7.5% C) 8.2% D) 8.5% E) 9.0%