Veronica mars, a recent graduate of bell's accounting program, evaluated the operating performance of dunn company's six divisions. veronica made the following presentation to dunn's board of directors and suggested the percy division be eliminated. "if the percy division is eliminated," she said, "our total profits would increase by $25,500."the other five divisions percy division totalsales $1,663,000 $100,000 $1,763,000cost of goods sold 977,000 76,000 1,053,000gross profit 686,000 24,000 710,000operating expenses 526,000 49,500 575,500net income $160,000 $ (25,500) $134,500in the percy division, cost of goods sold is $59,000 variable and $17,000 fixed, and operating expenses are $29,000 variable and $20,500 fixed.

none of the percy division's fixed costs will be eliminated if the division is discontinued. is veronica right about eliminating the percy division?
prepare a schedule to support your answer. (enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. ( eliminate net income increase (decrease)sales $ $ $ variable costs cost of goods sold operating expenses total variable contribution margin fixed costs cost of goods sold operating expenses total fixed net income (loss) $ $ $

is veronica right, or wrong?

On december 31, 2011, daggett company issued $750,000 of ten-year, 9% bonds payable for $700,353, yielding an effective interest rate of 10%. interest is payable semiannually on june 30 and december 31. prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on june 30, 2012, and (c) the semiannual interest payment and discount amortization on december 31, 2012. round amounts to the nearest dollar.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.