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Vedmedyk [2.9K]
3 years ago
5

Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should refle

ct:
A.) The relative sizes of the total book capitalizations for each kind of security that the firm issues.
B.) The relative sizes of the total market capitalizations for each kind of security that the firm issues.
C.) Only the market after-tax cost of debt.
D.) Only the market after-tax cost of equity
Business
1 answer:
rjkz [21]3 years ago
3 0

Answer:

B.) The relative sizes of the total market capitalizations for each kind of security that the firm issues.

Explanation:

WACC is the weighted average cost of capital. It is used as the discount rate when evaluate projects whose risk are similar to company's risk. Calculation of WACC uses relative market values of common equity, preferred stock and debt to calculate each proportion.  Cost of equity, cost of preferred stock and aftertax cost of debt are also used. This makes choice B correct.

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creativ13 [48]

Answer:

d. Debit advertising expense $350, credit accounts payable $350

Explanation:

The advertising expense should be recognized when the economic event occurs, in this case recibing the bill, independently of its payment. This is done with a debit because expenses increase by debits. The credit account is a liability: account payable, which represents an increased on liabilities.

6 0
3 years ago
Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was a lucrative business and he wan
Mama L [17]

Answer:

Logan Horse Ranch

The most accurate is:

e. None of the above are correct

Explanation:

Logan's payment to his brother, Luke, of $500 per hour, is not a reasonable business expense that can be deductible.  Surely, $500 per hour is not a going rate for cleaning the horse stalls per hour.  With Lucy doing grocery shopping for Logan, it does not resonate like an ordinary and necessary expense for the business. Therefore, options A to D are not correct.  This leaves only option E as the most accurate.

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3 years ago
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Elanso [62]

Answer:

e.

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6 0
3 years ago
For the purpose of process analysis, which of the following measures would be considered an appropriate flow unit for analyzing
ira [324]

Answer:

a. Sales Dollars

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Explanation:

In process analysis, flow unit can be described as the fundamental unit of analysis in any scenario whatsoever. This can include the customers, phone call, money, goods produced etc. Furthermore, the flow rate is simply the number of flow units. From the example, Sales Dollars and the number of customers served per day are appropriate flow units, while gasoline pumps and employees working are all resources and not flow units.

4 0
3 years ago
Read 2 more answers
The ________ is where quantity demanded and quantity supplied are equal at a certain price.
nikklg [1K]
The answer to this question is Equilibrium price
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In this level, the buyers will get the maximum value from the products while the sellers still maintaining a sustainable level of profit to continue their business.
6 0
2 years ago
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