The model commonly used by large organizations places the information security department within the _________

You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.

olga55 [171]

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

= (8,000*$1,060) + (310,000*$57) + (15,000*$72)

= $8,480,000 + $17,670,000 + $1,080,000

= $27,230,000

weight of debt = debt/total finance

= $8,480,000/$27,230,000

= 0.31

weight on equity = equity/total finace

= $1.080.000/$27,230,000

= 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

5 0

2 years ago

Effect of Inventory Errors

pav-90 [236]

Answer:

Effect of Inventory Errors

1. Kate Interiors Company:

Ending Inventory of $378,500 counted as $366,900.

This shows that Ending inventory is undervalued by $11,600 ($378,500 - 366,900).

The cost of goods sold will be overstated by $11,600 and the net income understated by $11,600 in the income statement.

In the balance sheet, the assets are understated by $11,600 and Equity (Retained Earnings) understated by the same amount.

2. Waterjet Bath Company:

Ending Inventory of $719,880 counted as $728,660.

This shows that Ending inventory is overvalued by $8,780 ($728,660 - 719,880).

The cost of goods sold will be understated by $8,780 and the net income overstated by $8,780 in the income statement.

In the balance sheet, the assets are overstated by $8,780 and the Equity (Retained Earnings) overstated by $8,780.

Explanation:

An overstatement of Ending inventory results in understated cost of goods sold and overstated net income. Conversely, an understatement of ending inventory results in overstated cost of goods sold and understated net income.

7 0

2 years ago

The stock of ABD, Inc. has a beta a 1.5 and an expected return of 11.6 percent. The expected return on the market is 11 percent.

GaryK [48]

Answer:

im sorry

Explanation:

8 0

2 years ago

Our basketball team has finished $80\%$ of its season, during which we won $40\%$ of the games we played. What percent of the re

masya89 [10]

Answer:

90%

Explanation:

Let x be the total number of matches,

Given,

80% of games were finished,

So, the number of finished games = 80% of x = 0.8x

∴ Remained games= x - 0.8x = 0.2x

Now, 40% of 80% of games were won,

So, the winning games in 0.8x matches = 40% of 0.8x

= 0.4 × 0.8x

= 0.32x

In order to finish games with the same number of wins as losses,

Winning percentage in all games must be 50%,

Thus, the total winning games = 50% of x = 0.5x

Let y be the winning percentage in 0.2x games,

So, the total winning games in 0.2x games = $\frac{y\times 0.2x}{100}$

∵ Number of winning matches in 80% games + number of winning matches in 20% = total winning matches

⇒ $0.32x + \frac{0.2xy}{100}= 0.5x$

$\frac{0.2xy}{100}=0.18x$

$0.2y=18$

$\implies y=90$

Hence, the percent of winning the in the remaining games must be 90%.

6 0

3 years ago

1. A useful characteristic of money is that money

Virty [35]

Answer:

O A. allows us to compare the values of goods and services.

Explanation:

Money has three primary functions which include a medium of exchange, unit of account, and store of value.

As a unit of account, money is used to give value to other assets. In other words, money provides a medium through which assets and products are valued. Money is divisible into smaller units which makes its application in valuation easy.

The value of goods and services is expressed in monetary terms. Buyers and seller, therefore, can determine how much is needed to transact.

5 0

2 years ago

The model commonly used by large organizations places the information security department within the __________ department.\