Answer:
a) 13.18%
b) 9.06%
c-1) 14.55%
c.2) 11.805%
c.3) 9.06%
Explanation:
debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%
equity = 40%, Re = ?
WACC = 7.7%
7.7% = (40% x Re) + (60% x 4.05%)
7.7% = (40% x Re) + 2.43%
(40% x Re) = 5.27%
Re = 5.27% / 40% = 13.175 = 13.18%
13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)
13.18% = ReU + (ReU - 0.054) x 1.125
0.1318 = ReU + 1.125Reu - 0.06075
0.19255 = 2.125ReU
ReU = 0.19255 / 2.125 = 9.06%
ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75
ReL = 14.55%
ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75
ReL = 11.805%
Answer:
July 24 Cash $1470 Dr
Discount allowed $30 Dr
Account Receivable $1500 Cr
Explanation:
The receipt of payment for accounts due will cause a credit to accounts receivable for that particular debtor along with a debit to cash as payment is received. However, as there were some sales returns, the outstanding amount in the accounts receivble account was sales less sales returns that is 3100 - 1600 = 1500.
The terms state 2/10, n/30 which means 2% cash discount is allowed if payment is made within 10 days of sale. The payment is made within 10 days, as July 24 falls under this period so cash received will be 1500 * 98% = 1470.
While Accounts recevables will be reduced by 1500. The difference of 30 is discount allowed and it is an expense and will be debitted.
True because in Shanghai the equilibrium of the bees is much harder than the volume of the wasp in Kosovo
The right answer for the question that is being asked and shown above is that: "TRUE." T<span>he chart of accounts includes assets, liabilities, and owner's equity accounts only. This statement is true as far as the chart of accounts is concerned.</span>
