F M L A which is the Family & Medical Leave Act provides certain employees with up to 12 weeks of unpaid leave for things like birth or adoption of a child, caring for a sick relative, or undergoing cancer treatment.
Answer:
WACC is 16.5%
Explanation:
Given:
Weight of equity is 75% or 0.75
Weight of debt is 25% or 0.25
Total value of firm is 1 (0.75 + 0.25)
Cost of debt is 6% or 0.06
Cost of equity is 20% or 0.2
WACC = (weight of debt × cost of debt) + (weight of equity × cost of equity)
= (0.25 × 0.06) + (0.75 × 0.2)
= 0.165 or 16.5%
Therefore WACC is 16.5%
Answer:
The correct answer is 4,000 shirts.
Explanation:
According to the scenario, computation of the given data are as follows:
Selling price = $35
Labor cost = $5
Cost of material = $10
So, Contribution margin amount = $35 - $5 - $10 = $20
And fixed cost = $60,000 + $20,000 = $80,000
So, we can calculate the breakeven units by using following formula:
Breakeven units = Fixed cost ÷ Contribution margin
= $80,000 ÷ $20
= 4,000 shirts
Answer:
Journal Entry
January 1
Dr. Cash $940,000
Dr. Discount on Account Receivable $60,000
Cr. Bond Payable Account $1,000,000
Explanation:
The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.
Discount on the Bond = Face value - Sale value = $100,000 - $940,000 = $60,000
The discount amount will be recorded in Discount on Bond Payable Account and will be amortized over the 10 years until the maturity of the bond.
Answer:
The Expected Average Rate of Return for the proposed investment is 30%.
Explanation:
This can be calculated as follows:
Average Investment = (Initial Cost + Residual Value) / 2 = ($5,330,000 + $0) / 2 = $2,665,000
Expected average annual income = Expected total net income / Useful life = $15,990,000 / 20 = $799,500
Expected Average Rate of Return = Estimated Average Annual Income / Average Investment = $799,500 / $2,665,000 = 0.30, or 30%