Answer:
12.085 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt
Remember to use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
= 8.00 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55
= 12.085 %
thus
the firm's WACC given a tax rate of 35 percent is 12.085 %
As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.
Answer:
$10,619.05
Explanation:
When sales is made at a tax rate of 5%, the entries to be posted in the proportion of the transaction amount
Dr Cash/ Accounts receivable 105%
Cr Sales revenue 100%
Cr Sales tax 5%
As such, if Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales, it means that the accounts contains 105%, as such, the sales tax which is the amount owed the taxing agency
= 5/105 * $223,000
= $10,619.05
Cash flow can be negative before debt and equity injections and must not be negative afterward.
The income statement recognizes income and expenses when cash is incurred, not when cash is actually exchanged. A cash flow statement records cash inflows and outflows when they actually occur.
The present value method calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to date using the hurdle rate.
Accounting receipts are pure receipts - expenses = receipts; cash flow is when cash actually changes hands, either coming in or going out. Recent cash flow should be used.
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Answer: Backtranslation
Explanation:
Back translation is the process of interpreting a document or retranslating a document that had been translated into another language back to its main original language.
Since the researchers are planning to use English and French versions of the survey, then in the preparation of the survey, they should use backtranslation.
