Answer:
A. an outflow or decrease of $1,000.
Explanation:
Ending balance of cash = Opening balance of cash + Net cash flow of the period
Ending balance of cash = Opening balance of cash + ( Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities )
$11,000 = $4,000 + $10,000 + cash flow from investing activities - $2,000
$11,000 = $12,000 + cash flow from investing activities
Cash flow from investing activities = $11,000 - $12,000
Cash flow from investing activities = -$1,000
Answer:
The company WACC is 13.30%
Explanation:
For computing the WACC, first we have to find the weight-age of both debt and equity.
Since in the question, the weightage of debt and equity is given which is equals to
Debt = 30%
And, Equity or common stock = 70%
So, we can easily compute the WACC. The formula is shown below
= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity
= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16
= 0.021 + 0.112
= 13.30%
Hence, the company WACC is 13.30%
Answer:
D
Explanation:
The cost of goods sold would increase by $2
