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3 years ago

A business buyers purchase process ends with:

1 answer:

8 0

I would see the process ends with the receipt of the goods. I used to work for a large open pit mine and go to the purchasers for buying materials for drilling etc and there would be first the requisition, then the purchaser would contact the seller or client and order the goods, then they would be purchased with the right account and finally received.

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Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted avera

Savatey [412]

Answer:

0.73

Explanation:

Given that

WACC = 11%

Tax rate = 34%

Cost of equity = 14.9 %

Cost of debt = 8.6%

Recall that

WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)

We are to find

Cost of debt and cost of equity

Let

Cost of debt be x

Cost of equity be (1 - x)

Thus,

0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)

x = 0.4228

Therefore,

Debt-equity ratio

= Cost of debt/cost of equity

= 0.4228/(1 - 0.4228)

= 0.73

4 0

3 years ago

Read 2 more answers

Sean, age 37, sold the home he purchased three years ago and now rents an apartment. he had originally purchased his home for $8

ZanzabumX [31]

28,800 is the answer

6 0

3 years ago

A company has $91,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.

lilavasa [31]

Answer:

$5,360

Explanation:

The adjusting entry is shown below:

Bad debt expense $5,360

To Allowance for doubtful debts $5,360

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful accounts as it reduced the assets

The computation is shown below:

= $91,000 × 5% + $810

= $5,360

8 0

3 years ago

One of the more important business applications of demand elasticity is the relationship between price and total revenue. For ea

user100 [1]

Answer:

Part 1. inelastic.

Part 2. inelastic.

Part 3. inelastic.

Explanation:

When the coefficient of elasticity of demand is less than 1, demand is inelastic, when it is equal to 1, demand is unitary elastic, when it is greater than 1, demand is elastic, and when it is equal to zero demand is perfectly inelastic.

Part 1

Price Elasticity of demand = (dQ/dP) x P/Q

Where : dQ = Change in Quantity

dP = Change in Price

P = Initial or Old price

Q = Initial of Old Quantity

dQ = $35,000 - $40,000 = - $5,000

dP = $10 - $8 = $2

P = $8

Q = $40,000

Price Elasticity of demand = (-$5,000/$2) * $8/ $40,000

= 2,500 * 1/5000 = -0.5

Disregard the minus sign, since elasticity of demand is less than 1, demand is inelastic.

Part 2

Price Elasticity of demand = (dQ/dP) x P/Q

dQ = $1,800 - $2,000 = - $200

dP = $50 - $40 = $10

P = $40

Q = $2,000

Price Elasticity of demand = (-$200/$10) * $40/ $2,000

= 20 * 0.02 = -0.4

Disregard the minus sign, since elasticity of demand is less than 1, demand is inelastic.

Part 3

Price Elasticity of demand = (dQ/dP) x P/Q

dQ = $120 - $150 = - $30

dP = $5 - $4 = $1

P = $4

Q = $150

Price Elasticity of demand = (-$30/$1) * $4/ $150

= 30 * 2/75 = - 0.8

Disregard the minus sign since elasticity of demand is less than 1, demand is inelastic.

5 0

3 years ago

Why is a high quality bond typically considered a lower risk investment than a stock

vladimir2022 [97]

The answer is in each term's definition. bonds are less risky no matter what the quality. Stocks may earn bigger profits, but more of a gamble.

3 0

3 years ago