Answer:
10.32%
Explanation:
Given :
Long term debt = 325000
Percent of par = 96.1% = 0.96
Market to book ratio = 2.71
Equity = 585000
Cost of debt = 0.0435
Cost of equity = 0.115
Market value of debt:
Bond sell for percent of par × long-term debt
0.96 × $325000
= $312,000
Market value of equity:
Equity × Market-to-book ratio
$585,000 × 2.71
$1585350
Total market value:
Market value of debt + Market value of equity
$312000 + $1585350
= $1897350
Weight of debt:
Market value of debt / Total market value
$312000 ÷ $1897350
= 0.1644
Weight of equity:
= 1 - Weight of debt
= 1 - 0.1644
= 0.8356
WACC:
= (weight of equity × cost of equity) + (weight of debt × cost of debt )
= (0.8356 × 0.115)+(0.1644 × 0.0435)
= 0.1032
= 10.32%
Answer:
Total cash collection= $42,300
Explanation:
Giving the following information:
<u>Sales:</u>
First month= $40,000
Second month= $61,000
The company expects to collect 30% of its credit sales in the month of the sale, 60% in the following month.
<u>Cash collection Second month:</u>
Cash collection credit sales from the second month= (61,000*0.3)= 18,300
Cash collection credit sales from the first month= (40,000*0.6)= 24,000
Total cash collection= $42,300
Answer:
The section of a professional business letter that contains the purpose of the correspondence is the body.
Have a nice day! :)
<span>Extractive </span>is the answer
Answer:
The correct answer is option D,debit salaries payable $12,000; credit salaries expense $12,000.
Explanation:
In the first ,the December 31 salary expense accrual would have been passed by debiting salary expense account and by crediting salary payable account as at 31st December.
In reversing its effect ,the earlier posting would need to be reversed by debiting salary payable account and crediting salary expense account.
It is clear from the options that option D fits in perfectly with my explanation.