Answer:
The interest expense of $59,463 must be recognize on its 2020 income statement.
Explanation:
With the given data make an amortization schedule
Hint : First determine the Future Value of the 5-year note
PV = $750,000
N = 5
Pmt = - $195,327
P/yr = 1
i = 9.5%
Fv = 0
<em>Input the elements in a Financial Calculator.</em>
2019
interest expense = $71,250
2020
interest expense = $59,463
Conclusion :
The interest expense of $59,463 must be recognize on its 2020 income statement.
Answer:
On the same day that announcement came, there have been inflationary pressures, which further indicates that prices are encouraged to demonstrate pointed ups and downs. Further analysis is provided below.
Explanation:
- Whenever one business purchased something else, the acquisition market capitalization encourages people to dip partially or completely, although the specified company’s stock price begins to increase.
- The acquisition's current share market is crashing although it sometimes continues to pay a higher price to that same sales department but rather accrues available to fund the acquisition.
Answer:
The WACC of the company is 15.01%
Explanation:
The WACC or weighted average cost of capital is the cost to firm of its capital structure. The capital structure of a firm can have 3 components namely debt, preferred stock and common stock. We take the weighted average of these components and their respective costs to calculate WACC. Moreover, we take the after tax cost of debt.
The WACC for a firm having only debt and common equity will be,
WACC = wD * rD * (1-tax rate) + wE * rE
First we need to determine the weightage of each component.
A debt equity ratio of 0.53 means that for every $0.53 of debt there is $1 of equity.
Total assets = debt + equity
Total assets = 0.53 + 1 = 1.53
Weighatge of debt = 0.53 / 1.53
Weightage of equity = 1 /1.53
WACC = 0.53 / 1.53 * 0.11 * (1-0.32) + 1 / 1.53 * 0.19
WACC =0.15009 or 15.009% rounded off to 15.01%
Answer:
Part a
Assets = Increase $3,600
Liabilities = Increase $3,600
Equity = No effect
Part b
Assets = Increase $12,300
Liabilities = No effect
Equity = Increase $12,300
Part c
Assets = Decrease $2,700
Liabilities = Decrease $2,700
Equity = No effect
Part d
Assets = Decrease (with decrease)
Liabilities = No effect
Equity = Decrease (with decrease)
Explanation:
Effects of the events on the financial statements are considered for the impart of transaction on the Assets, Liabilities and Equity as above.