Answer:
11.5%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
= (0.50 × 5%) × ( 1 - 40%) + (0.50 × 20%)
= 1.5% + 10%
= 11.5%
Basically we multiplied the weightage of capital structure with its cost so that the weighted average cost of capital could come
Answer:
(A)
cash 3,100,000
bonds payable 3,100,000
(B)
interest expense 155,000
interest payable 155,000
(C)
interest payable 155,000
cash 155,000
Explanation:
(A) the bonds were issued at par value so no discount or premium should be aknowledge
(B) 3,100 bonds x 1,000 face value x 5% interest = 155,000 interest expense
this interest expense is not paid at dec 31th so it is interest payable
(C) write-off the payable and the decrease in cash for the amount paid.
Answer:
Thursday following the auction date
Explanation:
Treasury bills are instruments used by government to control liquidity in the economy by mopping up excess cash. They are secure government investments that are interest bearing.
T-bills are usually announced on Thursday, actioned on Tuesdays, and issued on the Thursday after auction.
So if the customer places a bid of $10,000,000 for the T-bills on auction day on Tuesday, the settlement of the transaction will occur on the Thursday following the auction date.
Answer: d. C(x) = 15 +0.05x.
Explanation:
The Cost function for the cake will be the sum of the fixed and variable costs that Mrs. Dill will incur per cake baked.
Fixed cost = $15
Total Variable cost = Number of cakes baked * variable cost per cake
= x * 5 cents
= x * 5 cents / 100 cents in a dollar
= 0.05x
Cost function is therefore:
= 15 + 0.05x
Option B, Manage your money