Answer:
13.856%
Explanation:
For computing the discounting rate we have to find out the weightage average cost of capital but before that first we have to determine the cost of equity and the after tax cost of debt which is shown below:
Cost of equity = Risk free rate of return + Beta × market risk premium
= 8% + 2 × 4%
= 16%
And, the after cost of debt is
= Cost of debt × ( 1 - tax rate)
= 8% × (1 - 0.34)
= 5.28%
Now the weighted cost of capital is
= Cost of debt × weighted of debt + cost of equity × weighted of equity
= 5.28% × 20% + 16% × 80%
= 1.056% + 12.8%
= 13.856%
Answer:
The answer is : to Update the balance of Retained Earnings and prepare revenue, expense, and dividend accounts for next period's transactions
Explanation:
The closing entries is to set the accounts' balance of temporary account to zero by transferring these balance to other permanent accounts at the end of the accounting cycles.
Temporary accounts includes accounts of revenues and expenses and dividend payment. Permanent account is Retained Earnings.
As Revenues and expenses are recorded for an accounting period, their balances should be all transferred to Retained Earnings account, together with the dividend payment during the period, to determined the ending balance of Retained Earning account at the end of the accounting period.
Once the closing entries has been recorded, the balance of all revenues and expenses, dividend payments accounts will be set back to zero at the start of next account period for recording revenue and expenses taken place in that period only. While Retained Earning Balance will show how much accumulated Earnings a firm retained since the start of its business.
This is an example of a people constraint. A constraint is something that holds you back from completing something. In this scenario, there aren't enough people available to complete all of the projects Rachel is wanting to have completed so there is a people restraint with regards to completing activities.
Based on the information the current value of those 200 shares is $40,023.03.
Using this formula
Future value=Principal(1+rate)^Time
Where:
Principal=$7,800
Rate=14.6% or .145
Time =12 years
Let plug in the formula
Future value=$7,800 × (1 + .146)^12
Future value=$7,800×(1.146)^12
Future value=$7,800×5.131159
Future value= $40,023.03
Inconclusion the current value of those 200 shares is $40,023.03.
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