Answer: Jackson would decrease CASH and increase EXPENSES in the accounting equation.
Explanation: Jackson would lose cash by spending his money and his Living expenses will also rise along with it.
Answer:
10.25%
Explanation:
Data provided in the question:
Long-term debt = 45%, after-tax cost = 7%
Preferred stock = 15%, after-tax cost = 10%
Common stock equity = 40%, after-tax cost = 14%
Now,
The weighted average cost of capital for this firm will be calculated as:
= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost
or
= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14
or
= 0.0315 + 0.015 + 0.056
= 0.1025
or
= 0.1025 × 100%
= 10.25%
Answer:
D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.
Explanation:
I´m assuming that Hazel is a person that owns this event planning company.
The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800
If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.
$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain
