Answer:
Journal Entry
March 1
Dr. Cash $4,550,000
Dr. Discount on Note Payable $450,000
Cr. Note payable $5,000,000
December 1
Dr. Interest Expense $450,000
Cr. Discount on Note Payable $450,000
Dr. Note payable $5,000,000
Cr. Cash $5,000,000
Explanation:
Note payable is document which is payable after a specific period of time.
Note Payable is recorded at the present value of the note face value. We need to discount the face value of the note first.
Interest on the bond = $5,000,000 x 12% x 9/12 = $450,000
On December 31 Interest expense will be recorded and Payment of Note is made.
A dividend is a payment made by a corporation to it's shareholders usually as aa distribution of profits
<span>Scott's reference to Human Resources refers to the treatment of employees. Employees are important to a business for numerous reasons. Retention of employees reduces the costs associated with the on boarding of new hires. Employees that feel invested in also often form loyalty for their employer and may contribute more than expected to their tasks.</span>
Answer:
Explanation:
a) WACC of computer sales division:
Cost of equity = 4.3%+1.18×5.9%
=11.262%
WACC =(65300/(65300+705))×11.262%+(705/(65300+705))×6.2%×(1-35%)
=0.99*11.262% + 0.01*6.2%*0.65 = 11.15%+0.0403% = 11.2%
b. 12.5% = 43%×11.2%+57%×WACC (software div)
12.5% = 481.6% + 57%WACC
57%WACC = 469.1%
WACC (software division) = 8.23%
