Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
Answer:
True, To make the most of your time you should break up large projects into small pieces.
Explanation:
One way to break tasks down:
- Watch out for the large image. ...
- Review the elements of the task. ...
- Think about the relevant order of completing the pieces. ...
- Construct a timeline for accomplishing your tasks. ...
- Have a plan to support you stay on track. ...
- Complete your responsibility early enough to have some time left for a concluding review.
Answer:
merchandise purchases budget
Explanation:
A product sales forecast is a business plan that records the cumulative amounts of expenses or commodity production units that a retailer is supposed to buy in a reporting year.
In other terms, this is the expenditure analysts use to prepare acquisitions in inventories for the forthcoming times. This is also the guideline which determines the sum of money which the procurement department may allocate on yearly stock purchasing.
Thus, from the above we can conclude that the correct option is D.
Answer: D produces more good and services
Explanation:
Edg 2021
Answer:
See the explanation below:
Explanation:
Interest expenses = $6,950 × 3.75% = $261
Cash received = $6,950 - $261 = $6,689
The payment an be in two forms; it can be immediate or delayed. The two are done below:
a. Journal Entries for Immediate payment
Details Dr ($) Cr ($)
Cash 6,689
Card expenses 261
Sales 6,950
b. Journal Entries for delayed payment
When the transaction is carried out, we have:
Details Dr ($) Cr ($)
Account receivables 6,689
Card expenses 261
Sales 6,950
When the payment is received, we have:
Details Dr ($) Cr ($)
Cash 6,689
Account receivables 6,689
