This action is a violation of Cost Principle or Historical Cost Concept.
<h3>What is Historical Cost Concept?</h3>
The historical cost principle states that a company or business must account for and record all assets at the original cost or purchase price on their balance sheet and not at its market price.
The historical cost principle forms the foundation for an ongoing trade-off between usefulness and reliability of an asset.
Thus, if the modern enterprises reported all assets in the accounts at current market value. This action is a violation of Cost Principle or Historical Cost Concept.
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Answer:
Based on the CAPM approach, the cost of common from reinvested earnings is e. 10.93%
Explanation:
Hi, first, let´s introduce the formula for the CAPM approach.
Therefore:
So, the cost od common from reinvested earnings is 10.93%, which would be option "e".
Best of luck.
Answer:
WACC = 6.66
%
Explanation:
<em>Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund</em>
WACC = (Wd×Kd) + (We×Ke)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt = 5%
Ke-Cost of equity = 11.4%
Wd-Weight f debt -74%
We-Weight of equity = 26%
WACC = (0.74× 5%) + (0.26 × 11.4%) = 6.66
%
WACC = 6.66
%
Small scale business ideas are
1- work in a home or any shop near you
The answer to the question given is (A) training to prepare for a career. This is because vocational tends to refer to things that are related to jobs or careers, which makes the other options not appropriate for the definition of a vocational training.
Although one can make a career out of her or his hobby, or improving one’s health, or improving relationships, the options do not state that the purposes of those three trainings are for making income, thus (A) is the best choice.
