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3 years ago

How to calculate WACC using the CAPM

Business

1 answer:

Zolol [24]3 years ago

3 0

Answer:

The CAPM formula is widely used in the finance industry. It is vital in calculating the weighted average cost of capital. The WACC formula is = (E/V x Re) + ((D/V x Rd) x (1-T)).

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In planning their wedding, a couple creates a website that will allow friends and relatives to donate money to their honeymoon e

Mekhanik [1.2K]

Answer: c. Crowdfunding

Explanation: Crowdfunding is funding by many individuals pooling their money together for a common goal, usually via the Internet. The required amount for the project is raised by pooling small sums of money from a large number of people. Each individual acts as an agent of the offering, by selecting and promoting the projects in which they believe in. A wide range of profit-based ventures such as creative projects, medical expenses, travel etc. have employed crowdfunding as a means of sourcing funds.

6 0

4 years ago

The October 31 bank statement of White's Healthcare has just arrived from Stat Bank. To prepare the bank reconciliation, you gat

lesantik [10]

Answer:

Required 1 : Bank reconciliation

Bank Reconciliation Statement

Balance as per Bank Statement $5,170

Adjusted for error

Multi-State Freight Company $700

Balance as per adjusted Bank Statement $5,870

Add Lodgements not yet credited :

White treasurer`s deposit $290

Less Unpresented Cheques :

237 $90

288 $150

291 $580

294 $590

295 $10

296 $150 ($1,570)

Balance as per Cash Book $4,590

Required 2 : Journal entries

Journal 1.

Bank Service Charge $70 (debit)

Trade Receivables $540 (debit)

Bank $610 (credit)

Journal 2.

Bank $2,500 (debit)

Credit Transfer $ l,400 (credit)

Dividend Revenue $l,050 (credit)

Interest Revenue $50 (credit)

Explanation:

The first step to prepare a bank reconciliation is to update the cash book.

Cash Book (Bank Balances)

Debit :

Balance as per Cash Book $2,700

Credit Transfer $ l,400

Dividend Revenue $l,050

Interest Revenue $50

Totals $5,200

Credit :

Dishonored Cheques ($420 + $120) $540

Bank Service Charge $70

Adjusted Cash Book Balance $4,590

Totals $5,200

The Next step is to prepare a Bank Reconciliation Statement

Bank Reconciliation Statement

Balance as per Bank Statement $5,170

Adjusted for error

Multi-State Freight Company $700

Balance as per adjusted Bank Statement $5,870

Add Lodgements not yet credited :

White treasurer`s deposit $290

Less Unpresented Cheques :

237 $90

288 $150

291 $580

294 $590

295 $10

296 $150 ($1,570)

Balance as per Cash Book $4,590

Journal Entries to Correct the Cash Book :

Journal 1.

Bank Service Charge $70 (debit)

Trade Receivables $540 (debit)

Bank $610 (credit)

Journal 2.

Bank $2,500 (debit)

Credit Transfer $ l,400 (credit)

Dividend Revenue $l,050 (credit)

Interest Revenue $50 (credit)

8 0

3 years ago

The demand curve faced by a perfectly competitive firm rev: _______

vivado [14]

Answer:

The answer is D.

Explanation:

The demand curve faced by perfectly competitive firm is horizontal. This means that if individual firm charges price above the market price, it will not sell anything.

The curve is the same as marginal revenue curve because change in total revenue from selling one more unit(marginal revenue) is the constant market price.

And it holds in perfect market that price equals marginal revenue (P=MR).

The correct option is D.

6 0

3 years ago

The Phelan Division produces and sells a product to external and internal customers. Per-unit information about its operations i

ioda

Answer:

The answer is $250

Explanation:

Solution

From the example given, we are asked to find the internal transfer price of Phelan's product.

So, if Phelan is operating at capacity or speed and has unlimited external customer demand then the transfer price for Phelan's product is $250 as it has huge demand from customers

6 0

3 years ago

Mary is an authorized user on her parents' credit card. What may happen if Mary doesn't use the card in a responsible way?

iren [92.7K]

If Mary doesn't use the card in a responsible way, there's a possibility that Mary will spend more than what her parents allowed her to spend. Therefore, giving more payment duties to her parents which could also result to debt if the amount spend is too much.

5 0

4 years ago

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How to calculate WACC using the CAPM​

How to calculate WACC using the CAPM