1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BabaBlast [244]
3 years ago
6

Grouper Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were

$2,052,000 on March 1, $1,200,000 on June 1, and $3,007,200 on December 31. Grouper Company borrowed $1,042,720 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,039,800 note payable and an 10%, 4-year, $3,462,500 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
Business
1 answer:
trasher [3.6K]3 years ago
3 0

Answer:

The weighted-average interest rate used for interest capitalization purposes is 10.1%

Explanation:

This problem requires us to compute the weighted-average interest rate used for interest capitalization purposes. The wacc can be calculated in the following way.

          Loan Amount Outstanding                                    Weightage                                          (LOA)                                                                        (LAO/Total)

                     $ 868,933      (1,042,720/12*10)                 13.6%    

                     $ 2,039,800                                                32%

                     $ 3,462,500                                                54.4%

Total              $ 6,371,233

WAAC = 13% * 13.6% + 9% * 32% + 10% * 54.4%

WAAC = 10.1%

You might be interested in
On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred
Aleksandr-060686 [28]

Answer:

Dividend Declared (SCE) $4,500 (credit)

Shareholders for Dividends (SFP) $4,500 (credit)

Explanation:

When Dividends are declared, we recognize an Equity Element - Dividend Declared and a liability (Present Obligation that arises with declaration) to the Shareholders of the dividend.

<u>Entry :</u>

Dividend Declared (SCE) $4,500 (credit)

Shareholders for Dividends (SFP) $4,500 (credit)

Dividend Calculation = 1,500 × $50 × 6%

                                   = $4,500

8 0
3 years ago
A cost-benefit analysis is a way
dedylja [7]

Answer:

Cost Benefit Analysis

Way of thinking that compares the cost of an action to its benefits.

Explanation:

I hope it helps.

8 0
3 years ago
Read 2 more answers
Pick an Agile Manifesto principle that you think is likely to have the biggest impact on the success or failure of a typical pro
satela [25.4K]

The correct answer to this open question is the following.

The Agile Manifesto principle that I am going to pick in the principle of "Embracing Change."

I think this is likely to have the biggest impact on the success or failure of a typical project in my organization because change is the constant in modern-day business. Probably, since the inception of the modern-day industry.

In order to be successful and maintain that success over the years -no matter the conditions- a company has to be ready not only to adapt to change but to change ahead of necessity. And this is one of the most difficult things to do in business because people love to be in a comfort zone for years. People in corporate America likes to know they are safe in their traditional places doing traditional things. For them, change is tough.

That is why I think "Embrace change" would be the principle that would help me the most.

3 0
3 years ago
When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will
kipiarov [429]

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will expect an ownership stake in the company in exchange for financial backing.

Venture capitalists are investors that provide capital to small businesses, young companies, and start-ups in exchange for an equal value share in the asset and expect ownership.

Small businesses do not have adequate capital and turn to venture capitalists for financial backing to expand and upscale their projects. Venture capitalists do not invest in budding businesses but choose businesses that have strong management and clear concepts and are ready to market their products. Due to uncertainty in the investment outcome, venture capitalists tend to have a high failure rate, but the investments that do pan out tend to be high yield.

You can learn more about venture capitalist at

brainly.com/question/18776651

#SPJ4

5 0
2 years ago
Upon starting her new position, Brenda is given a _______ that details the tasks, duties, and responsibilities considered a part
Arada [10]

Answer:

The answer is job description (JD).

Explanation:

The job description is the summary of tasks, duties, and responsibilities for a particular position. The job description also includes the requirements for the position holder. In some cases, it may details the reporting line, compensation and benefits regarding to the job.

3 0
3 years ago
Other questions:
  • Emma has ben promoted to a managerial position where she manages fifty employees in a division that has a history of low product
    8·1 answer
  • The reason that the​ fast-casual restaurant market is monopolistically competitive rather than perfectly competitive is because
    7·1 answer
  • During their first year, Austin and Associates bought $32,000 worth of supplies for their CPA firm. When purchased, the supplies
    12·1 answer
  • Patrick Guitman recently graduated from college with $20,000 in student loans and $5,000 in credit card debt. He usually makes m
    7·1 answer
  • URGENT- FINANCIAL MATH.One of the variable expenses that Roxy knows she’ll need to include in her budget is utilities. She decid
    10·1 answer
  • Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash op
    6·1 answer
  • What are some possible explanations for why these loans are popular despite the fact that they create a cycle of debt for many b
    14·2 answers
  • A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rat
    8·1 answer
  • Assume the manager is located at point B in the diagram above, and he is charging a price of P0. What does the demand for the fi
    10·1 answer
  • What two key values are identified for each performance parameter in the capability development?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!