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3 years ago

In 2018, Bratten Fitness Company made the following cash purchases:

Business

1 answer:

Nadusha1986 [10]3 years ago

6 0

Answer:

Date Particular DR CR

a. Patent $214,500

Cash 214,500

Being total payment for the exclusive right

to produce X-core machine

b. Brand name 260,000

Exercise Equipment 403,000

cash 663,000

Being the payment for the brand name of Silver Gym

and exercise equipment

c. Copyright 22,000

Cash 22,000

Being the payment for the exclusive right to sell Healthy book

Explanation:

there is no journal enrty for the amount to be paid to Silver Gym on a monthly basis when the sales begin because the money has not been paid.

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The required return on equity for an all-equity firm is 10.0 percent. They are considering a change in capital structure to a de

Sladkaya [172]

Answer:

The new cost of capital if this firm changes capital structure is 1.3

Explanation:

From the provided information:

All equity beta = 1

New D/E ratio = 0.5

Then, the new capital structure with levered beta is given by:

new capital structure = All equity beta *(1 + D/E*(1 - tax rate))

= 1*(1 + 0.5*(1 - 40%))

= 1.3

Therefore, The new cost of capital if this firm changes capital structure is 1.3

5 0

3 years ago

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. T

mixas84 [53]

Answer:

b. 5.27%

Explanation:

First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;

Face value; FV = 1000

Maturity of bond; N = 15*2 = 30

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Semi annual interest rate; I/Y = 3.25%

then compute Price; CPT PV= 1,213.547

Next, with the PV , compute the yield to call (I/Y) given 6 years;

Maturity of bond; N = 6*2 = 12

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Price; PV= -1,213.547

Face value; FV = 1,050

then compute Semiannual interest rate; CPT I/Y = 2.636%

Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%

7 0

3 years ago

(Ignore income taxes in this problem.) The management of Stanforth Corporation is investigating automating a process. Old equipm

solniwko [45]

The simple rate of return on the investment is closest to: 34.5%

Explanation:

Given:

Current salvage value = $15,000

Cost of new machine = $408,000

Cash operating cost = $141,000

Simple Return on Investment is Calculated as follows:-

Simple rate of return on the investment = Net Operating Cost Saved/ Initial Investment X 100

So Simple Return = 141000/408000 X 100

= 34.5%

The simple rate of return on the investment is closest to: 34.5%

3 0

3 years ago

At Rolce Technologies, the core design team of 10 employees has daily "stand-up" meetings. All the core design team members gath

4vir4ik [10]

Answer: rituals

Explanation: Rites and rituals, which also include habits and ceremonies, together shape the culture of an organization. A ritual is a series of activities that involve actions, words and things, performed in a locked away position and executed in a fixed sequence.

For example, an employee can eat lunch in the shared lunchroom rather than their desk as a form of habit, or spend five minutes after each meeting debriefing the team about what they learned.

Hence from the above we can conclude that the correct option is D.

8 0

2 years ago

Mention two benefits of positive values at the work place

Trava [24]

giving health care and paying salary

6 0

2 years ago