Depending on when you get paid.
If you get paid every week then weekly.
Most of the time I would say to make a budget weekly just because it is easier to keep track of.
so (C)
Answer:
WACC = 0.08085 or 8.085% rounded off to 8.09%
Option c is the correct answer.
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- D, P and E represents debt, preferred stock and common equity respectively
- r represents the cost of each component
We first need to calculate the weight of each stock. We know the basic accounting equation is,
Assets = Debt + Equity
We know the debt to equity ratio is 3. Then total assets will be,
Assets = 3 + 1
Assets = 4
Using the CAPM equation, we can calculate the cost of equity.
r = risk free rate + Beta * Market risk premium
r = 0.03 + 1.5 * 0.09
r = 0.165 or 16.5%
WACC = 3/4 * 0.08 * (1 - 0.34) + 1/4 * 0.165
WACC = 0.08085 or 8.085% rounded off to 8.09%
Answer:
4,000
Explanation:
expected uncollectible 5% of Ar
5% of 100,000 = 5,000
current balance (1,000 credit)
Adjustment 4,000
When the uncolelctibles are made base on account receivable, the amount calculate is the ending balance and we should calculate the adjustment by the diference between beginning balance and ending balance
If the allowance is made based on sales then weshould adjust for the whole amount of the expected bad debt
