Answer:
WACC incorrect must be selected is the correct answer to this question.
Explanation:
The weighted average cost of capital is the amount of the valuation of the security x the cost of the security concerned. Thus, if the weight of defense increases at a high rate, the total average rate of assets rises as well.
In our present scenario, the weight of equity rises (as equity increased to repay the debt), and debt decreases (as debt is redeemed) and the cost of equity is 15.5 percent, which is higher than the cost of debt by 6 percent. As a result, the weighted average cost of capital increases.
The correct answer would be option A, computer,desk,legal/incorporation fees,roof.
She also paid $6000 in legal/incorporation fees and spent $12000 for a new roof for the office building she owns. Computer, desk, legal/incorporation fees, roof, purchases she can expense in 2018 without limitations.
Explanation:
Wendy is a financial planner who began his business in 2018. She purchased computers, desks, paid legal/incorporation fees, and also spent money for a new roof for the office building.
All these purchases are already paid by him in the running year. So he does not have to worry about their limitation at least in 2018. These are mostly one time purchases that would need only maintenance in years, or he might have to pay only for the renewal of the legal/incorporation. Otherwise there would be no limitation on him in 2018 at least.
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Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
A major result of increasing urbanization in african nations has been the movement of people from the country to the city and probably less people involved in agriculture. Also, it would probably result in a more informed populace since cities tend to be more complex societies than villages and more connected to what is happening in the world.
Answer:
B. Paying city inspection fees for new equipment
Explanation:
Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.
City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.
Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.
