Answer:
The correct answer is: 8.72%
Explanation:
Cost of debt K d = I (1 – t) + (-pi)/n
(SV + RV)/2
= 80(1 – 0.40) + (-75)/25
(1,000 + 1,075)/2
= 0.043 or 4.3%
Cost of equity K e = R f + b (R m – R f)
R m – R f = 5.5% = market risk premium
R f = risk free rate = 4.5%
B = beta = 1.2
K e = 4.5% + 1.2(5.5%)
= 11.1%
WACC = W d * K d + We * K e
= 35% * 4.3% + 65% * 11.1%
= 1.505 + 7.215
= 8.72%
Answer:
Net profit= $21200
Explanation:
Giving the following information we need to calculate the net profit or loss:
Revenues:
Fees for computer repairs $ 41,600
Fees for printer repairs 5,950
Total revenues= 47550
Expenses: (-)
Advertising expense 5,700
Salaries expense 18,500
Telephone expense 850
Utilities expense 1,300
Total expense= 26350 (-)
Net profit= 21200
Answer: $240,000
Explanation:
An intangible asset is an asset which lacks physical substance. While physical assets include assets like buildings, machinery and financial assets like government securities, the intangible assets are hard to evaluate and they include copyrights, patents, trademarks, franchises, goodwill, and trade names.
From the information provided in the equation, copyrights is $240,000 which is an intangible asset. Therefore, in Randolph's balance sheet, intangible asset should be written as $240,000.
Answer:
b. credit to Nate, Capital for $57,000
Explanation:
Nate is investing in the business and All his investment will be recorded by the partners as follow
Dr. Receivable $60,000
Dr. Cash $6,000
Cr. Nate Capital Account $57,000
Cr. Allowance for Doubtful Accounts $9,000
All the receivables are become the receivables of the business.
Cash is also added to the business cash.
Allowance for Doubtful Accounts are also recorded against the receivable added.
Net effect of all the above account will be recorded as Capital investment
