Answer:
8.15 %
Explanation:
Weighted Average Cost of Capital (WACC) is the business Cost of permanent sources of finance pooled together. It shows the risk of the business and is used to evaluate projects.
WACC = Cost of Equity x Weight of Equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt
<u>Remember to use the After tax cost of debt :</u>
After tax cost of debt = Interest x ( 1 - tax rate)
= 6.50% x (1 - 0.40)
= 3.90 %
therefore,
WACC = 11.25% x 55% + 6.00% x 10% + 3.90 % x 35%
= 8.15 %
Thus,
Quigley's WACC is closest to 8.15 %.
Answer:
Explanation:
The proper adjusting entry is as follows
Supplies expense A/c Dr $603
To Supplies A/c $603
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies account balance - supplies on hand at the end of the year
= $873 - $270
= $603
Basically we debited the supplies expense account and credited the supplies account so that the proper posting could be done.
What upgrade are you talking about
A service business could help a business by working for that business aka cleaning maintenance and little things to help the company look good
Answer:
This type of trade is called Arbitrage trading.
Explanation:
Arbitrage trading a simultaneously selling and buying of financial instruments or entering into various transactions at the same time in at least two different market to make money through the exploitation of price differences.
In this case, because there is price differences between the borrowing market in Japan and deposit market in Australia, the trader can earn profit by borrowing in Japan in yen, converting the amount into AUD and deposit it in Australia to earn 4% per annum profit.
Such scenario exists as a result of market inefficiency. As more and more trader does the same trading, borrowing cost in Japan will be higher ( due to higher demand) and deposit cost in Australia will be lower ( due to higher supply). In the end, market will be efficient and such trading will not lead to any profit gained from price differences.
