Answer:
----->Traders would deposit their gold with goldsmiths.
--->Goldsmiths issued paper receipts in excess of the amount of gold held.
--->Goldsmiths put the paper receipts into circulation by making loans.
Explanation:
Answer:
WACC without taxes = 6.84% (rounding up to two decimals)
WACC with a tax rate of 21%= 6.27% (rounding up two decimals)
Explanation:
To calculate WACC we need to know the weight's for equity adn debt:
Equity: 24,000,000 x 13 = 312,000,000
Debt 368,000,000
Value: 680,000,000
Debt weight's 368M/680M = 0.458823529
Equity weight's 312M/680M =0.541176471
Now we have he weights can calculate the WACC
Ke 0.09
Equity weight 0.458823529
Kd 0.05
Debt Weight 0.541176471
t 0 (as this is a pretax, tax is zero)
WACC 6.83529%
then, for b we are asked for a 21% tax rate, everything else remains unchanged:
if t = 21% then:
t 0.21
WACC 6.26706%
Answer: The economy drastically slows down as money loses its buying power.
Explanation:
Assuming that you wanted to know how to journal this, it would be :
Dec. 31
Debit Credit
Income Summary $ 188,000
Retained Earning $ 188,000