Answer:
Option (B) is correct.
Explanation:
Cost of Equity (Ke) = Rf + Beta ( Rp)
where,
Rf = risk free rate
Rp = Market risk premium
Hence,
Beta systematic risk
:
= 7% + 1.7 (6%)
= 7% + 10.2%
= 17.2%
Post Tax cost of debt:
= Kd ( 1 - T)
where,
Kd = cost of debt
T = tax rate
= 20% * (1-0.4)
= 12%
WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]
where,
We = weight of equity
Wd = weight of debt
= [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]
= 10.32% + 4.80%
= 15.12%
Answer:
a. $25,650
b. Journal entries
Explanation:
The computation is shown below:
a. The balance of the Allowance for Doubtful Accounts is
= Total account receivable × estimated percentage
= $570,000 × 4.5%
= $25,650
b. The adjusting entry is as follows
Bad Debt Expense $13,650 ($25,650 - $12,000)
To Allowance for Doubtful Accounts $13,650
(Being the bad debt expense is recorded)
c. The adjusting entry is as follows
Bad Debt Expense $26,650 ($25,650 + $1,000)
To Allowance for Doubtful Accounts $26,650
(Being the bad debt expense is recorded)
Despite that 4Ps helped to remember the basics components of the <u>marketing mix</u>, they do not reveal all the components in the marketing process.
<h3>What is Marketing 4Ps?</h3>
The Marketing 4Ps is an economic model that enhances the components of a firm "marketing mix", that is, they enhance the way firm take a new product or service to market.
The Marketing 4Ps includes price, product, promotion and place.
However, the marketing mix does not reveal all the components in the marketing process.
Read more about Marketing 4Ps
<em>brainly.com/question/859394</em>
Answer: The following statements are true about this natural monopoly:<em> </em><u><em>It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.</em></u>
Natural monopoly is a form of monopoly that persists because of start-up costs of administrating a business organization in a particular industry. A organization with natural monopoly will be the only supplier of a commodity or service in an industry.
Answer:
The correct answer is D that is $33,500
Explanation:
The total cost for the oranges = Direct cost + Indirect cost
= (Number of carton × Rate per carton) + (Number of carton × Rate per carton)
= (1,000 × $10) + (1,000 × $16.50)
= $10,000 + $16,500
= $26,500
Total Revenue = Number of carton × Selling price
= 1,000 × $30
= $30,000
Profit from oranges = Revenue - Cost
= $30,000 - $26,500
= $3,500
Profit or loss from from processing into the orange juice is computed:
Total Cost = Number of carton × Price
= 1,000 × $12.50
= $12,500
Revenue = Number of carton × Selling Price
=1,000 × $46
= $46,000
Profit or loss = Revenue - Cost
= $46,000 - $12,500
= $33,500
Therefore, Corporation has a profit of 33,500.
