Answer:
The WACC of the firm is 10.08% and option A is the correct answer.
Explanation:
The WACC or the weighted average cost of capital is the average cost of capital to the firm based on its capital structure and the weights of all the components that form up its capital structure and their respective rate. The capital structure of a firm consists of debt, preferred stock and the common stock.
The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity component as a proportion of total assets
- rD, rP and rE represents the cost of each component
- rD * (1-tax rate) is taken as the after tax cost of debt is used for WACC
WACC = 0.35 * 0.065 * (1-0.4) + 0.1 * 0.06 + 0.55 * 0.1475
WACC = 0.1008 or 10.08%
I believe it is : Executing the project includes work required to introduce any new hardware, software, and procedures into normal operations.
Answer:
$17,000,000
Explanation:
Balance in common stock after the issuance = $1700,000 x $10
Balance in common stock after the issuance = $17,000,000
You can't find difference between balance of common stock, additional paid-in capital, and retained earnings when a company issues a stock split But there would be surely a change in par value and number of outstanding shares. Market value of share will either increase or decrease.
Answer:
balance sheet
liabilities
note payables (current portion) 44,000
non-current liabilities
long-term note payable 178,000
Explanation:
On December 31,2020 there will be a portion of the note that will be declared as current liability while another non-current as within 12-months there is payment due (to be more precise next day after the balance close)
Thus 222,000 - 44,000 = 178,000 long-term
while the 44,000 are declared short-term