"an alien corporation is chartered in one state but does business in"

On January 10, Chen Co. issued an $80,000, 6%, 90-day note payable to Rao Co. Using a 360-day year, what is the total interest e

Yanka [14]

Answer:

d. $1,200

Explanation:

The computation of the interest expense is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $80,000× 6% × (90 days ÷ 360 days)

= $1,200

We simply apply the simple interest formula

Since the number of days and the total number of days are given so we considered the same for the computation part.

4 0

3 years ago

Targaryen Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt.

Juli2301 [7.4K]

Answer:

a. What is the company’s WACC?

R_Wacc = 13% (65%) + 5% (5%) + 6% (30%) * (1-0,25) = 10,05%

b. What is the aftertax cost of debt?

The aftertax cost of debt is:

R_Debt : (1 - 0,25) x 6% = 4,50%

Explanation:

The WACC it's defined by the formula :

WACC: E/V*Re + D/V*Rd *(1-0,25)

Re: 13,00% Cost of Common Equity

Re: 5,00% Cost of Preferred STOCK

Re: 6% Cost of Debt

E/V: 65% Percentage of financing that is Common Equity

PS/V: 5% Percentage of financing that is Preferred Stock

DB/V: 30% Percentage of financing that is Debt

Tax: 25% Corporate tax rate

Now we have all of the components to calculate the WACC.

The WACC is:

R_Wacc = 13% (65%) + 5% (5%) + 6% (30%)*(1-0,25) = 10,05%

The aftertax cost of debt is:

R_Debt : (1 - 0,25) x 6% = 4,50%

5 0

3 years ago

What is the role of Scientific management in the modern era?

rjkz [21]

The Scientific management in the modern era is management that analyzes and synthesizes workflows.

The role of Scientific management in the modern era is improving economic efficiency, especially in the labor productivity. It is a systematic approach to handle management problems. It implies scientific techniques in method of work, recruitment, selection and training of workers.

Scientific management in the modern era is helped in the enhanced production. The employees perform repetitive tasks and are therefore easily controlled by the management.

To know more about management here,

brainly.com/question/20435550

#SPJ9

6 0

1 year ago

What is an economic factor on a business

blsea [12.9K]

Hi there!

Information:

First, allow us to observe what an "economic factor is".

- An economic factor is data taken out of market and economy.

- Economic factor may include certain costs. And these costs well be in our answer.

Problem-Solving / Answer

Now, we figure out what economic factors we can find.

Tax rates - tax rates can include an Economic factor.

Laws - Laws are a known economic factor.

Unemployment - Big one, at this time due to COVID-19, unemployment rates are flying off the charts. This is an example of an economic factor.

Important Keywords;

- Data ; Data can be information taken from a place, for example, you have taken data from a chart.

Learn more:

Push factors: brainly.com/question/13553564

Economic growth: brainly.com/question/13023127

8 0

4 years ago

In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be

Bas_tet [7]

Answer:

False

Explanation:

The contribution margin will be higher for the company with the highest fixed expenses. Contribution margin = selling price - variable cost

For example:

Company A Company B

sales price per unit $100 $100

total costs per unit $80 $80

variable costs per unit $50 $40

fixed costs per unit $30 $40

contribution margin $50 $60

4 0

3 years ago