Answer:
Total donation= $76,000,000
Explanation:
Giving the following information:
These maintenance costs are expected to be $1 million each year for the first five years, $1.3 million each year for years 6 through 10, and $1.5 million each year after that. The money is placed in the account that will pay a 5% interest compounded annually.
First, we need to calculate the final value of the donation:
We have 3 perpetual annuities.
FV= 1,000,000/0.05= 20,000,000
FV= 1,300,000/0.05=26,000,000
FV= 1,5000,000/0.05= 30,000,000
Total donation= $76,000,000
The amount of donation Mr. Kendall should solicit to cover all future expected maintenance costs for the athletic complex is approximately $58.81 million, based on the principle of Time Value of Money.
This problem is related to the concept of the Time Value of Money, which is a fundamental principle in finance. According to this principle, the value of money you have now is greater than the same amount in the future due to its potential earning capacity. It can be solved using the formula for the present value of a perpetuity.
In the first five years, Mr. Kendall needs $1 million per year, thus, the present value (PV) of these costs could be calculated by $1 million / 0.05 = $20 million. For years 6 through 10, he needs $1.3 million per year, however, since these costs will occur in the future, they should be discounted back to the present. Hence, the PV would be $1.3 million / 0.05 = $26 million, then discounted back for five years, which is $26 million / (1.05)^5 = $20.43 million. For any year after the 10th year, he needs $1.5 million per year, this is a perpetuity that will start in year 11, so, its PV would be $1.5 million / 0.05 = $30 million, then discounted back for ten years, which is $30 million / (1.05)^10 = $18.38 million. Finally, to cover all the expected maintenance costs, the donation should be the sum of these PVs, which is $20 million + $20.43 million + $18.38 million = $58.81 million.
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Answer:
The actual usage of materials was less than the standard allowed.
Explanation:
Based on these variances, one could conclude that the actual usage of materials was less than the standard allowed because the Company planned to produce 3,000 units of its single product during November in which the standards for one unit of the product specify six pounds of materials at $0.30 per pound but at the end the Actual production in November was 3,100 units instead of 3,000 unit which was planned .
Therefore Materials quantity variance = (AQ - SQ) SP.
A favorable materials quantity variance can occurred in a situation where the actual usage of materials was less than the standard allowed which is AQ < SQ.
1. Predetermined Overhead Rate ≈ $160.27
2. Hourly Billing Rate for Tara ≈ $245.73
(1) To compute the predetermined overhead rate, we need to calculate the total cost of services (salary plus overhead) for both appraisers and then divide it by the total billable hours.
Total Overhead Costs = $378,210
Total Salary Costs = Salary of Debbie + Salary of Tara = $150,000 + $81,000
= $231,000
Total Billable Hours = Billable hours of Debbie + Billable hours of Tara
= 2,000 + 1,800
= 3,800
Predetermined Overhead Rate = (Total Overhead Costs + Total Salary Costs) / Total Billable Hours
Predetermined Overhead Rate = ($378,210 + $231,000) / 3,800
Predetermined Overhead Rate = $609,210 / 3,800
Predetermined Overhead Rate ≈ $160.27 (rounded to 2 decimal places)
(2) To compute the hourly billing rate for Debbie and Tara, we'll use the formula:
Hourly Billing Rate = (Total Cost of Services + 20% Markup) / Total Billable Hours
For Debbie:
Total Cost of Services for Debbie = Salary of Debbie + (Predetermined Overhead Rate × Billable hours of Debbie)
Total Cost of Services for Debbie = $150,000 + ($160.27 × 2,000)
Total Cost of Services for Debbie = $470,540.00
Hourly Billing Rate for Debbie = ($470,540.00 + 0.20 × $470,540.00) / 2,000
Hourly Billing Rate for Debbie ≈ $282.32 (rounded to 2 decimal places)
For Tara:
Total Cost of Services for Tara = Salary of Tara + (Predetermined Overhead Rate × Billable hours of Tara)
Total Cost of Services for Tara = $81,000 + ($160.27 × 1,800)
Total Cost of Services for Tara = $369,486.00
Hourly Billing Rate for Tara = ($369,486.00 + 0.20 × $369,486.00) / 1,800
Hourly Billing Rate for Tara ≈ $245.73 (rounded to 2 decimal places)
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The predetermined overhead rate is found to be 163.77%, and the hourly billing rates for Debbie and Tara (including a 20% markup) are $237.40 and $142.44, respectively.
To calculate the predetermined overhead rate, we need to divide the total overhead costs by the total salary costs of both appraisers. In this case:
Total Overhead Costs = $378,210
Total Salary Costs = Debbie's Salary ($150,000) + Tara's Salary ($81,000) = $231,000
Predetermined Overhead Rate = Total Overhead Costs / Total Salary Costs = $378,210 / $231,000 = 1.6377 or 163.77%
To calculate the hourly billing rate for each appraiser, you add their salary cost per hour, the overhead cost per hour, and then mark up the total cost by 20%. For Debbie:
Debbie's Salary per Hour = $150,000 / 2,000 hours = $75
Debbie's Overhead per Hour = 1.6377 × $75 = $122.83
Total Cost per Hour for Debbie = $75 + $122.83 = $197.83
Hourly Billing Rate for Debbie (with 20% markup) = Total Cost per Hour × 1.20 = $197.83 × 1.20 = $237.40
Similarly, for Tara:
Tara's Salary per Hour = $81,000 / 1,800 hours = $45
Tara's Overhead per Hour = 1.6377 × $45 = $73.70
Total Cost per Hour for Tara = $45 + $73.70 = $118.70
Hourly Billing Rate for Tara (with 20% markup) = Total Cost per Hour × 1.20 = $118.70 × 1.20 = $142.44
$2,470.04?
Answer:
It would take a total of 14.572001 Months to pay off the balance, with interest
Explanation:
$2470.04 Would take 12.6 months to pay off, therefore, you must apply 17.99% yearly interest to this figure.
$2470.04 * .1799 = $444.36 interest
Principal + interest = total
$2470.04 + $444.36= $2914.4
$2914.4 / $200 = 14.57 months
The calculation of how many months it would take to repay a credit card balance, given an annual interest rate and a fixed monthly repayment, is not straightforward due to the compounding effect of interest. However, without considering interest, this would update around 12.35 months to pay off the balance of $2,470.04 with a monthly payment of $200.
The question relates to the concept of credit card debt repayment. Given an annual interest rate of 17.99%, a monthly payment of $200.00, and a balance of $2,470.04, it will take significantly longer than just dividing $2,470.04 by $200 to pay off the debt. This is because the annual interest rate is compounding on the remaining balance every month.
In order to calculate the exact number of months it would take to pay off the credit card, we'd need to set up and solve a complex mathematical equation which requires a good understanding of logarithms and algebra. In this case, it is best to use a financial calculator or an online credit card repayment calculator. However, on a simple base without accounting for interest, by dividing the balance of $2,470.04 by the monthly payment of $200, it would take approximately 12.35 months to pay off the debt. However, due to the added interest, the actual number of months would likely be greater.
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Answer:
$59.68 million per share
Explanation:
The computation of stock price per share is shown below:-
Earnings Before Interest , depreciation, taxes and amortization (EBITDA) = Sales - Cost
= $29.8 million - $15.5 million
= $14.3 million
Enterprise Value ÷ EBITDA = 9.3
Hence, Enterprise Value = EBITDA × 9.3
= $14.3 million × 9.3
= $132.99 million
Enterprise Value = Value of Equity + Debt - Cash
or Value of Equity = $132.99 million - $55.8 million + $39.8 million
= $116.99 million
Now,
Stock Price Per share = Value of Equity ÷ Number of Shares Outstanding
= $116.99 million ÷ 1,960,000
= $59.68 million per share
The company's Enterprise Value (EV) is $132,990,000 and the stock price per share is $60.20. The EV was calculated by multiplying the firm's EBITDA ($14.3 million) by the industry EV/EBITDA multiple (9.3). The stock price per share was determined by dividing the Market Capitalization ($117,990,000) by the shares outstanding (1,960,000).
To respond your question, we first need to calculate the company’s Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA). In this case, since only sales and costs are given, let's assume that EBITDA is the company’s sales minus costs. Therefore, EBITDA = $29.8 million - $15.5 million = $14.3 million. Secondly, the Enterprise Value (EV) is determined as the product of the company’s EBITDA and the industry EV/EBITDA multiple. EV = $14.3 million * 9.3 = $132.99 million. But keep in mind to enter your answer in dollars, not millions of dollars. So, the EV = $132,990,000.
To calculate the stock price per share, we must first calculate the Market Capitalization of the company. The Market Capitalization is the EV minus the net debt (which is the company's debt minus the cash). Market Capitalization = EV - (Debt - Cash) = $132,990,000 - ($55,800,000 - $39,800,000) = $117,990,000.
Lastly, we get the stock price per share by dividing the Market Capitalization by the number of shares outstanding. Stock price per share = $117,990,000 / 1,960,000 shares = $60.20. So, the stock price per share would be $60.20 returned to 2 decimal places.
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Answer:
$6,400.
Explanation:
Because these points are paid in connection with the purchase of a principal residence, Marcia may deduct $6,400 ($320,000 × 2%) as interest expense during the current year.
$277,062
B.
$252,838
C.
$113,550
D.
$163,512
Answer:
D.$163,512
Explanation:
Depletion expense is a charge against profits for the use of natural resources.
Depletion rate = cost to purchase resource/ number of units = $530,000/ 35,000 tons = $15.14 per ton
Depletion expense for 2019 = Depletion rate * number of units extracted and sold in 2019 = $15.14 * 10,800 = $163,512