Answer:
A. Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B.
2. Dr Cash 5850
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
Cr Equipment 360
Explanation:
A. To Correct the errors by reversing the incorrect entry and Preparation of the correct entry.
Reversals entry
1. Dr Cash 900
Cr Equipment 900
Correct entry
Dr Wages and salaries 900
Cr Cash 900
B. To Correct the errors without reversing the incorrect entry
2. Dr Cash 5850
($6500-650)
Dr Service revenue 650
Cr Account payable $6,500
3. Dr Accounts payable 360
(510-150)
Cr Equipment 360
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Bank-B is better to invest because it has higher Future value due to higher effective annual interest rate.
<span>Expected utility is calculated by multiplying the utility of each possible outcome by its probability and summing the products. So if Terri has a 25% chance of becoming disabled and purchases a policy then her expected utility is: (.25 x $20,000) + (.75 x $80,000) = $5,000 + $60,000 = $65,000. On the other hand, if Terri does not purchase a policy then her expected utility is (.25 x $0) + (.75 x $80,000) = $0 + $60,000 = $60,000.</span>
Answer: NIMS management characteristic Accountability is there in this situation.
Explanation:
The National Incident Management system controls major incidents and coordinates with the person to overcome such incidents based on some management characteristics. Accountability is one such characteristic where the check-in and check out are included.
Therefore, in the above situation, the Principle of Accountability is the management characteristic. According to the principle of Accountability, the manager is responsible to coordinate with the resources. It includes, checks in and check- out, personal responsibility, unity of command, etc.
Answer:
WACC is 9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )
As per given data
Market Values
Equity = $7 billion,
Preferred stock = $2 billion
Debt = $13 billion
Cost
Equity
Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.
Formula for CAPM
Cost of Equity = Risk free rate + beta ( market return - risk free rate )
Cost of Equity = Rf + β ( Mrp )
Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%
Preferred stock = $2 / $26 = 0.077 = 7.7%
Debt = 8%
Placing values in the formula
WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )
WACC = 5.03% + 3.31% + 0.7% = 9.04%