Answer:
Partial balance sheet of Tamarisk, Inc.
Non Current Assets :
Buildings $1,140,000
Less accumulated depreciation—buildings ($652,000) $488,000
Coal mine $509,000
Less accumulated depletion—coal mine ($107,000) $402,000
Goodwill $421,000
Total $1,311,000
Explanation:
The Items above are Non- Current Assets. Non Current Assets are resources expected to generate economic benefits for a period exceeding 12 months.
*A product cost is Group of answer choices expensed in the period in which the product is manufactured shown with current liabilities on the balance sheet shown with operating expenses on the income statement expensed in the period the product is sold
Answer:
expensed in the period in which the product is manufactured.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
Generally, a product cost or the cost associated with the manufacturing of a particular product is expensed within the period in which it was manufactured by the firm.
Your firm purchases goods from its suppier on terms of 1/22, net 42. What is the effective annual cost to yourfirm if it chooses not to take advantage of the trade discount offered
Answer:
The effective annual cost to yourfirm if it chooses not to take advantage of the trade discount offered is:
= 18.25%.
Explanation:
a) Data and Calculations:
Terms 1/22, net 42: This effectively provides a discount of 1% if the firm pays its supplier within 22 days from the date of purchase. After the 22 days up to 42 days, the firm pays the full amount. This means that the cost of this discount can be annualized as 1% * 365/20 = 18.25%.
This means that if the firm chooses not to take advantage of the trade discount offered, it is actually losing 18.25%. per annum.
A loss due to a discontinued operation should be reported on the income statement a.as an operating expense b.without related tax effect c.above income from continuing operations d.below income from continuing operations
Answer:
d.below income from continuing operations
Explanation:
An income statement can be regarded as financial statement which expresses the income of the company as well as expenditures. It allows the company to know whether profit or loss is been made by the company for a given period. The income statement, as well as balance sheet and cash flow statement can allow ones to understand the financial health of a particular business. It should be noted that loss due to a discontinued operation should be reported on the income statement as below income from continuing operations
A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on these stocks is 8.80 percent and 12.40 percent, respectively. What is the expected return on the portfolio
Answer:
the expected return on the portfolio is 10.98%
Explanation:
The computation of the expected return is shown below;
Return on Stock M = $15,000 × 8.8% = $1,320
Return on Stock N = $22,900 × 12.40% = $2,840
Now
Portfolio return is
= ($1,320 + $2,840 ) ÷ ($37,900)
= 10.98%
The $37,900 comes from
= $15,000 + $22,900
= $37,900
hence, the expected return on the portfolio is 10.98%
The main difference between perfect competition and monopolistic competition is Group of answer choices The ease of entry and exit. The number of firms in the market. The long-run economic profits that are expected. The degree of product differentiation.
Answer:
The ease of entry and exit
Explanation:
As we know that both perfect competition and the monopolistic competition are the market structures
In the perfect competition, there are no of buyers & sellers who have same product and also have free exit a& entry
But in the case of the perfect competition, there are buyers and sellers hwo have different products also there is not as ease as much perfect competition for the exit and entry
Therefore the first option is correct
A company is considering two mutually exclusive projects. The firm has a 12% cost of capital , has estimated the cash flows as below: Project A Project B Initial Investment -$150,000 -$150,000 Year Cash Inflows 1 $ 45,000 $ 75,000 2 $ 45,000 $ 60,000 3 $ 45,000 $ 30,000 4 $ 45,000 $ 30,000 5 $ 45,000 $ 30,000 6 $ 45,000 $ 30,000 Calculate the payback period for each project. Which project is preferred according to this technique
Answer:
Project A = 4 years 4 months
Project B = 2 years 6 months
Explanation:
The payback period of a project is the length of time it takes for the cash flows to equal the amount of initial investment.
Project A ( $150,000) = $ 45,000 + $ 45,000 + $ 45,000 + $15,000 / $ 45,000 x 12
= 4 years 4 months
Project A ( $150,000) = $ 75,000 + $ 60,000 + $15,000 / $ 30,000 x 12
= 2 years 6 months
Clabber Company has bonds outstanding with a par value of $119,000 and a carrying value of $108,700. If the company calls these bonds at a price of $104,500, the gain or loss on retirement is:
Answer:
Gain on retirement $4,200.00
Explanation:
The computation of the gain or loss on retirement is given below;
Carrying value of Bond $108,700.00
Less; Price at which bond is called $104,500.00
Gain on retirement $4,200.00
Simply subtracted the called price of the bond from the carrying value of the bond so that the gain on retirement is recorded
The size, sign, and timing of individual cash flows are illustrated by the ____________________, as the basis for engineering economic analysis. Write the word(s) that fill(s) in the blank below.
Answer:
Cash Flow Diagram
Explanation:
The correct statement is that the size, sign and timing of an individual cash flow are illustrated by the cash flow diagrams, as the basis of engineering economic analysis.
Cash flow diagrams are prepared by taking the data from the cash flow statements that are prepared at the end of each accounting period.
Cash FlowCash Flow of a business refers to as a cash that is either a part of income and revenue or expense for the business during a given accounting period.The cash flow diagrams are prepared by taking into account the data obtained from the cash flow statements and can be illustrated into the size of the cash flows and their timings during the financial period.
Hence, the correct statement is that cash flow diagrams are used to illustrate the size, signs and timings of the individual cash flow statements.
Learn more about cash flow here:
https://brainly.com/question/5339442
The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative, the microcomputers can be sold in their present condition for $50,000. The sunk cost in this situation is: g
Answer: $720000
Explanation:
Sunk cos simply refers to a coat which a company has already incurred and can't be recovered. They're not relevant to future decisions if the company has they already happened in the past.
In this case, the sink cost will be $720,000 which is the total cost of the obsolete microcomputers, Other coat such as $100,000, $160,000, and $50,000 are relevant cost.
why the kid say nvr waste ur diamonds on a hoeh
Answer:
it was a waste of diamonds lol
Explanation:
The financial statements of an Enterprise fund are prepared using the :_______
Answer:
Accrual Method
Explanation:
I’m not sure if this is what this question is referring to or not, but the Enterprise fund uses the accrual method.
Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,800 direct labor-hours will be required in May. The variable overhead rate is $2.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $107,440 per month, which includes depreciation of $9,610. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $116,310. $18,480. $97,830. $125,920.
Answer:
$116,310
Explanation:
May cash disbursements = $2.10 x 8,800 + $107,440 - $9,610
= $116,310
The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $116,310
A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour, which she sells to a baker for $145. The baker turns the wheat into bread, which she sells to consumers for $155. Consumers eat the bread.Assume that the above transactions account for all economic activity in an economy.GDP in this economy is $______Value added is defined as the value of a producer’s output minus the value of the intermediate goods that the producer buys to make the output.Assuming there are no intermediate goods beyond those previously described, complete the following table by calculating the value added for each of the three producers. Then enter the total value added in the final row.
Answer:
The correct answer is "$155".
Explanation:
Given:
She sells to miller,
= $90
She sells to baker,
= $145
She sells to consumers,
= $155
Now,
The value added by miller will be:
= [tex]145-90[/tex]
= [tex]55[/tex] ($)
The value added by the baker will be:
= [tex]155-145[/tex]
= [tex]10[/tex] ($)
hence,
The GDP in this economy will be:
= [tex]155[/tex] ($)
Jisue Construction Company received $12,000 for six months rental income in advance on November 1, 2020, and credited the Rental Revenue account for $12,000. The required adjusting entry on December 31, 2020, would include a Group of answer choices
Answer:
Debit : Rent in Advance $4,000
Credit : Rent Income $4,000
Explanation:
When Rent was paid in advance :
Debit : Cash $12,000
Credit : Rent in Advance $12,000
The required adjusting entry on December 31, 2020 :
Debit : Rent in Advance $4,000
Credit : Rent Income $4,000
Hummingbird Company uses the product cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows:
Variable costs per unit:
Direct materials $2.50
Direct labor 4.25
Factory overhead 1.25
Selling and administrative expenses 0.50
Total 8.50
Fixed costs:
Factory overhead $25,000
Selling and administrative expenses 17,000
Hummingbird desires a profit equal to a 5% rate of return on invested assets of $642,500.
Required:
a. Determine the amount of desired profit from the production and sale of Product K.
b. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 25,000 units of Product K.
c. Determine the markup percentage for Product K.
d. Determine the selling price of Product K.
Answer:
Hummingbird Company
a. The amount of desired profit from the production and sale of Product K is: $32,125.
b. The total manufacturing costs is: $237,500
The cost amount per unit for the production and sale of 25,000 units of Product K is: $10.18 ($274,500/25,000)
c. The markup percentage for Product K is:
= 11.70% ($32,125/$274,500 * 100)
d. The selling price of Product K is:
= $11.47 ($286,625/25,000)
Explanation:
a) Data and Calculations:
Production and sales unit of Product K = 25,000
Variable costs per unit:
Direct materials $2.50
Direct labor 4.25
Factory overhead 1.25
Selling and administrative expenses 0.50
Total 8.50 $212,500
Fixed costs:
Factory overhead $25,000 $237,500
Selling and administrative expenses 17,000
Total production and sales costs = $254,500
5% rate of return on invested assets 32,125 ($642,500 * 5%)
Total costs + target profit $286,625
Suppose a firm has an annual budget of $150,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner-manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $320,000 per year. Answer the indicated questions on the basis of this information. What are the annual implicit costs for the firm described above
Answer:
the annual implicit cost for the firm is $90,000
Explanation:
The computation of the annual implicit cost is shown below;
The implicit cost means the opportunity cost
Since in the given situation of the owner does not select to pay himself but he would received $90,000 by working somewhere
so here $90,000 represent the implicit cost
Hence, the annual implicit cost for the firm is $90,000
The ____ is an organization that has developed resource documentation for CSPs and their staff. It provides guidance for privacy agreements, security measures, questionnaires, and more.
Answer:
Cloud Security Alliance
Explanation:
Cloud Security Alliance can be regarded as an organization that
is a not-for-profit one having a mission in raising best practices that provid security assurance in cloud computing as well as provision of education on how cloud computing can be used in
securing forms of computing. It should be noted that Cloud Security Alliance
is an organization that has developed resource documentation for CSPs and their staff. It provides guidance for privacy agreements, security measures, questionnaires, and more.
The kinked demand model assumes firms will: a. follow the price decreases of rivals b. ignore the price increases of rivals c. ignore all price changes of rivals d. follow all price changes of rivals e. a and b
Answer:
b. ignore the price increases of rivals
Explanation:
Surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.
Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On
Generally, the kinked demand model assumes firms will ignore the price increases of rivals
Answer:
b. ignore the price increases of rivals
Explanation:
The kinked demand model assumes firms will: ignore the price increases of rivals.
Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is a set of decisions made by finance professionals. Categorize the decisions according to the area of finance to which they belong.
Decision
Corporate Finance
Capital Markets
Investments
Ethan must make a decision on how to cut costs so that his company can generate extra cash flow to acquire assets.
Radford works for an investment bank and makes decisions about the sale of new common stock by ABCL Inc.
Aakash works for a financial advising firm. He must create a financial plan and come up with a list of securities in which his client can invest. Aakash must make decisions regarding the investments that he should recommend to his clients to include in their portfolio.
Answer:
corporate finance
capital markets
investments
Explanation:
Corporate finance is a branch of finance that is concerned with how companies manage their sources of funds, capital structure and make investment decisions.
Ethan must make a decision on how to minimise cost so as to acquire more assets. the purchase of asset is an investment decision. the area of finance here is corporate finance.
Capital market is a market where buyers and sellers come together to buy and sell financial securities.
There are two types of capital markets :
Primary market - new issues of stocks and securities are traded in this market. Secondary market -previously issued securities are traded in this market.Radford is selling a newly issued common stock. He is engaged in the primary market of the capital market
Investment is an asset purchased that has the potential to increase wealth or income of the purchaser.
For example, the purchase of of securities has the potential to increase the wealth of the holder.
Aakash is involved in investment
The price of a non-dividend-paying stock is $20, and the price of a 3-month European call option on the stock with a strike price of $22 is $1.50. Assume the risk-free rate is 5% per annum. What is the price of a 3-month European put option with a strike price of $22 on the same stock
Answer:
-$0.23
Explanation:
Using put-call parity equation:
Price of European call option = Current stock price + Price of European put option - Strike price*e^-(risk free rate * time to expiration)
Price of European call option = $20 + $1.50 - $22*e^-(0.05*3/12)
Price of European call option = $20 + $1.50 - $22*0.9875778
Price of European call option = $20 + $1.50 - $21.73
Price of European call option = -$0.23
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 479,232 (b) 399,360 Bal. 79,872 Work in Process Bal. 13,640 (c) 742,000 288,000 89,000 (b) 399,360 Bal. 48,000 Finished Goods Bal. 42,000 (d) 656,000 (c) 742,000 Bal. 128,000 Cost of Goods Sold (d) 656,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 23,040 Finished Goods, ending 61,440 Cost of Goods Sold 314,880 Overhead applied $ 399,360 For example, of the $48,000 ending balance in work in process, $23,040 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer:
Part 1:
a) We see that the actual Mfg OH is being debited with the amount incurred.
b) Work in Process Inventory Debit (b) 399,360
Mfg OH ( applied) Credit (b) 399,360
c) CGS debit (c) 742,000
WIP Credit (c) 742,000
d) CGS debit (d) 656,000
Finished Goods credit (d) 656,000
Part 2:
The journal entry is
Cost of Goods Sold $79872 Debit
Factory Overhead $ 79 872 Credit
Part 3:
Journal Entry
Work in Process, $ 24960 debit
Finished Goods, 66560 debit
Cost of Goods Sold (11648) credit
Manufacturing Overheads $ 79872 credit
Explanation:
The given accounts are
Manufacturing OverheadDebit Credit
(a) 479,232 (b) 399,360
Bal. 79,872
Work in ProcessDebit Credit
Bal. 13,640 (c) 742,000
288,000
89,000
(b) 399,360
Bal. 48,000
Finished GoodsDebit Credit
Bal. 42,000 (d) 656,000
(c) 742,000
Bal. 128,000
Cost of Goods Sold(d) 656,000
Part 1:
a) Actual manufacturing overhead
We see that the actual Mfg OH is being debited with the amount incurred.
b) Manufacturing overhead applied to Work in Process Inventory
Work in Process Inventory Debit (b) 399,360
Mfg OH ( applied) Credit (b) 399,360
c) Cost of Goods Manufactured
CGS debit (c) 742,000
WIP Credit (c) 742,000
d) Cost of Goods Sold
CGS debit (d) 656,000
Finished Goods credit (d) 656,000
Part 2:
The actual overhead is $ 479232 and applied overhead is $399,360 which is less than actual overhead.
The journal entry is
Cost of Goods Sold $79872 Debit
Factory Overhead $ 79 872 Credit
To transfer under applied overhead to cost of goods sold.
Part 3:
We find the differences between actual and applied overheads and then pass the journal entry.
Work in Process, ending $ 23,040
Finished Goods, ending 61,440
Cost of Goods Sold 314,880
Overhead applied $ 399,360
Work in Process, ending $ 48,000
Finished Goods, ending 128,000
Cost of Goods Sold 303,232
Actual Overhead $ 479,232
Work in Process, ending =$ 48,000 -$ 23,040 =$ 24960
Finished Goods, ending= 128,000-61,440 = 66560
Cost of Goods Sold = 303,232 -314,880 = (11648)
Journal Entry
Work in Process, $ 24960 debit
Finished Goods, 66560 debit
Cost of Goods Sold (11648) credit
Manufacturing Overheads $ 79872 credit
On May 1 of the current year, Cassandra Corp. issued $600,000 of 4% bonds payable at par with interest payment dates of April 1 and October 1. In its income statement for the current year ended December 31, what amount of interest expense should Cassandra report
Answer:
Cassandra Corp.
The amount of interest expense that Cassandra should report in its income statement for the current year ended December 31 is:
= $18,000.
Explanation:
a) Data and Calculations:
Face value of bonds issued May 1 = $600,000
Proceeds from the bonds issue = 600,000
No discounts/ no premiums
Coupon and effective interest rate = 4%
Interest payment = Semiannually
Semiannual interest payment = $12,000 ($600,000 * 2%)
October 1:
Interest expense = $12,000
Interest payment = $12,000
December 31:
Interest expense = $12,000 * 3/6 = $6,000
Interest expense on December 31 = $18,000 ($12,000 + $6,000)
Calculating Standard Quantities for Actual Production Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 940 oil changes. Required: 1. Calculate the number of quarts of oil that should have been used (SQ) for 940 oil changes. fill in the blank 1 quarts 2. Calculate the hours of direct labor that should have been used (SH) for 940 oil changes. fill in the blank 2 direct labor hours 3. What if there had been 930 oil changes in June
Answer:
Guillermo's Oil and Lube Company
1. The number of quarts of oil that should have been used (Standard Quantity) for 940 changes is:
= 6,204 quarts.
2. The hours of direct labor that should have been used (Standard Hours) for 940 oil changes is:
= 470 hours.
Explanation:
a) Data and Calculations:
Time taken for a typical oil change = 30 minutes or 0.5 hours (30/60)
Standard quarts of oil for a typical oil change = 6.6 quarts
Total oil changes in June = 940
1. The number of quarts of oil that should have been used (Standard Quantity) for 940 changes = 6,204 (940 * 6.6) quarts
2. The hours of direct labor that should have been used (Standard Hours) for 940 oil changes = 470 (0.5 * 940) hours
Jammer Company uses a weighted average perpetual inventory system that reports the following August 2 purchase 19 units at $16 per unit August 18 purchase 21 units at $15 per unit August 29 sale 38 units August 31 purchase 24 units at $19 per unit what was the per-unit value of ending inventory on August 31
Answer:
$23.19
Explanation:
The the weighted average perpetual inventory system recalculates a new unit cost whenever a new purchase is made. This unit cost is used to value cost of sales and inventory balance.
Unit Cost = Total Cost of units available for sale ÷ Total units available for sale
August 18
Unit Cost = [(19 units x $16) + (21 units x $15)] ÷ 40 units
= $15.475
August 31
Unit Cost = [(2 units x $15.475 ) + (24 units x $19)] ÷ 21 units
= $23.1880 or $23.19
therefore,
The per-unit value of ending inventory on August 31 is $23.19.
1. The amount of money that is invested in a house is called?
Answer:
REITs allow you to invest in real estate without the physical real estate. Often compared to mutual funds, they're companies that own commercial real estate such as office buildings, retail spaces, apartments and hotels. REITs tend to pay high dividends, which makes them a common investment in retirement.
Explanation:
Hope this helps you sorry if it doesn’t
a US Company, has a 100% owned subsidiary in Japan. The functional currency for the subsidiary is the Japanese yen. The Japanese subsidiary purchases merchandise on credit from a Swiss company, with payment due in US dollars. Between the date of purchase and the due date of the payable, the swiss franc strengthens against the US dollar and the Japanese yen weakens against the US dollar. What will be the result to Juno
Answer:
What will happen is that the credit, taken from a Swiss company in US dollars, will become more costly due to the depreciation against the Swiss France.
However, the weakening of the Japanese Yen against the U.S. dollar may benefit the Japanese subsidiary if it is involved primarily in exports, because the cheaper yen will make its products more attractive to American customers, and probably also to other customers around the globe.
issued $200,000 of 10-year bonds on January 1. The bonds pay interest on January 1 and July 1 and have a stated rate of 10 percent. If the market rate of interest at the time the bonds are sold is 12 percent, what will be the issuance price of the bonds (pick the closest answer)?
Answer:
$177,060.16
Explanation:
The issuance price of the bonds is also known as the current price of bonds and in the bond calculation we refer this as the Present Value or PV.
Using a financial calculator, PV of the Bond is determined as :
FV = $200,000
N = 10 x 2 = 20
P/YR = 2
PMT = ($200,000 x 10%) ÷ 2 = $10,000
I/YR = 12 %
PV = ??
Thus,
The PV is determined as $177,060.16
therefore,
The issuance price of the bonds is $177,060.16
What is external factor
Answer:
External factors are those influences, circumstances or situations that a business cannot control that affect the business decisions that the business owner and stakeholders make. The are a large number of external factors can have a direct impact on the ability of your business to achieve its strategic objectives.
On January 1, 2020, Blue Inc. issued stock options for 290,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in four years. Blue initially estimates that it is not probable the goal will be achieved, but in 2022, after three years, Blue estimates that it is probable that divisional revenue will increase by 6% by the end of 2023. Ignoring taxes, what is the increase in expense in 2022
Answer: $1,305,000
Explanation:
Blue initially estimated that the goal would not be achieved so had not catered for the expense in the case that it would.
In 2022, when Blue estimates that the target will be reached, they will have to account for the expenses for the three years for the option because the options value is to be amortized over the period in question which is 4 years.
Options value = 290,000 * 6
= $1,740,000
Over 4 years:
= 1,740,000 / 4
= $435,000
Over the three years:
= 435,000 * 3
= $1,305,000
Expenses will increase by 1,305,000 for the year.
ou were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WACC
Answer:
the weighted average cost of capital is 9.25%
Explanation:
The computation of the weighted average cost of capital is shown below;
= Cost of debt × weight of debt × (1 - tax rate) + cost of equity × weight of equity + cost of preferred stock × weight of preferred stock
= 35% × 6.50% × (1 - 0.40) + 11.25% × 55% + 6% × 10%
= 1.365% + 7.288% + 0.6%
= 9.25%
Hence, the weighted average cost of capital is 9.25%
The same would be considered and relevant