Answer:
The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.
At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.
Explanation:
Answer:
Opportunity costs = 42,000 + 14,000 + 21,000 + 9,000 = $86,000
Explanation:
Opportunity cost is the cost of doing the next alternative.
In this case the opportunity cost would be the profits she has forgone and the costs she incurred to run the florist shop. Personal expenses are not included as we assume apartment and bill costs would be payable regardless of any decision.
Opportunity Costs = Next alternative + Costs of being a florist
Opportunity costs = 42,000 + 14,000 + 21,000 + 9,000 = $86,000
If Jacinda were making profits, we would subtract them from the salary that she could have earned.
Hope that helps.
Answer:
$9,900
Explanation:
The double-declining method is an accelerating approach to accounting for depreciation. The method uses twice the rate of the straight-line depreciation method. For central supply, the straight-line depreciation rate will be.
Useful- life 9 years, the rate will 1/9 x 100
=11.11 %
Double declining method = 11 % x 2 = 22%
the Depreciable amount equal to asset cost minus salvage value
=$45,000 -$4500
=$40,500
Depreciation is done up to the salvage value.
The first-year depreciation will be 22% of the book value( the cost price)
=22% of $45,000
=22/100 x $45,000
=$9,900
Answer:
A. Buy gold in the spot with borrowed money, and sell the futures contract.
Explanation:
A futures contract is an agreement to buy or sell an asset at a future date at an agreed-upon price while arbitrage is the simultaneous purchase and sale of identical goods or securities that are trading at disparate prices. There is opportunity for riskless profit in arbitrage because of the exploitation of price disparities.
Based on the above definitions, buying gold in the spot with borrowed money, and selling the futures contract since it is overpriced will yield positive riskless arbitrage profits.
