Answer:
Debt equity ratio = 1.01
Explanation:
given data
WACC = 11.2 percent
cost of equity = 16.8 percent
pretax cost of debt = 8.7 percent
tax rate = 35 percent
to find out
What does the debt-equity ratio need to be for the firm to achieve its target WACC
solution
we get here WACC that is express as
WACC = Wd × Rd × (1-t) + We × Ke ..................1
here Wd is weight of debit and t is tax rate and Ke is cost of equity and
Wd + We = 1
so We = 1 - Wd
put value in equation 1
WACC = Wd × Rd × (1-t) + We × Ke
11.20% = Wd × 8.70% ×(1-35%) + (1-Wd) × 16.80%
solve and we get
Wd = 0.5025
so We will be
We = 1 - 0.5025
We = 0.4975
and
Debt equity ratio will be
Debt equity ratio =
Debt equity ratio = 1.01
Answer:
B) Federal Sentencing Guidelines for Organizations Act.
Explanation:
The Federal Sentencing Guidelines for Organizations Act (FSGO) was passed on November, 1991, and it provides a guideline for organizations' compliance and ethics programs. It applies to virtually all types of private organizations, including corporations, partnerships, non-profits, labor unions, etc.
Answer:
$9.2
0
Explanation:
The calculation of the Finishing Department is shown below:-
Plant - wide overhead rate = Total overhead ÷ Total machine hour
= ($470,000 + $737,900) ÷ ($470,000 + 133,950)
Plant wide overhead rate = $2 per machine hour
Machine hour for product = 4.2 + 0.4
= $4.6 machine hour
Applied overhead = Machine hour for product × Plant wide overhead rate
= $4.6 × $2
= $9.2
0
Answer:
43,240 units
Explanation:
Note : We are using FIFO method thus, we are only interested in the units worked in this year.
<u>Calculation of equivalent units of production for conversion costs</u>
To Finish Beginning work in process inventory (7,700 × 60%) = 4,620
Started and Completed ((39,600 - 7,700) × 100%) = 31,900
Ending work in process inventory (9,600 × 70%) = 6,720
Equivalent units of production for conversion costs = 43,240
<u>Conclusion :</u>
The equivalent units of production for conversion costs in the Brazing Department for November is 43,240 units.
Answer:
supplies expense 800 debit
supplies 800 credit
--to record year-end adjustment on supplies used--
Explanation:
we will adjust for the amount of supplies consumed over the period:
1,200 beginning - 400 ending = 800 consumed.
We are going to decrease the assets account supplies and recognize na expense account to represent the use of the supplies.
The assets will be credited as is decreasing and the expense debit to make debit = credit