Answer:
weighted average cost of capital is minimized
Explanation:
Weighted average cost of capital (WACC) in accounting is the average rate of return a company is expected to compensate all its various investors by comparing its debt and equity structure.
The value of a firm is maximized when the weighted average cost of capital is minimized.
The formula to calculate the weighted average cost of capital (WACC) is:
WACC = ((E ÷ V) x Re) + (((D ÷ V) x Rd) x (1 - T))
Where;
Re=Cost of equity
Rd=Cost of debt
E=Market value of equity
D=Market value of debt
T=Effective tax rate
V=Total market value of combined equity and debt
Answer:
Quantity will rise, and the effect on price is ambiguous.
Explanation:
Music compact discs are normal goods. There is a positive relationship between the demand for the normal goods and the income of the consumers.
If the compact disc players become cheaper to produce then as a result all the producers start producing music compact discs and this will increase the supply of music compact disc. This will shift the supply curve rightwards.
And if the income of the music lovers increases then as a result the demand for music compact discs increases. This will shift the demand curve rightwards.
Therefore, these changes will increase the equilibrium quantity and the impact on equilibrium price is ambiguous because that will be dependent upon the magnitude of the shift of supply and demand curve.
Answer:
66
Explanation:
When union workers vote to elect their representatives, the representative must be elected by a simple majority of the votes. A simple majority means 50% plus 1. In this case 50% of 130 votes = 65 votes plus 1 = 66 votes.
Exclusive representation is a legal status that allows the elected representative the legal right to represent the union workers in different situations, e.g. collective bargaining
Answer:
Explanation:
The retained earning are the earnings of the business organization which is earned until the date.
The net income or net loss would reflect in the statement of the retained earning account.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
The journal entry is shown below:
Retained earnings A/c Dr $3,000
To Dividend A/c $3,000
(Being dividend account is closed)
The Parent taxpayer is entitled to the earned income credit
<u>Explanation:</u>
The federal income tax credit or income credit in the United States is a refundable tax credit, particularly those with children, for low- to moderate-income working individuals and couples. The EITC benefit amount depends on the income of the recipient and the number of children.
The EITC benefits low to reasonable-income parents but offers very little assistance to workers without eligible children (often referred to as childless workers). Income tax credit (EITC). Workers earn a loan up to a limit of one percent of their income.
