The most likely answer is option D
Answer:
the total amount owed to general unsecured creditors is $71,000
Explanation:
The computation of the total amount owed to general unsecured creditors is shown below:
= Account payable + wages payable + taxes payable + interest on note payable + interest on bond payable
= $40,000 + $6,000 + $12,000 + $5,000 + $8,000
= $71,000
hence, the total amount owed to general unsecured creditors is $71,000
The same is to be considered
Answer:
Option (C) is correct.
Explanation:
We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.
Cost of equity:
= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)
At the beginning, when there was no debt,
WACC = cost of equity = 12 %
Levered cost of equity:
= 12% + ( 12% - 6%) × 0.5
= 15%
Therefore, Rearden's levered cost of equity would be closest to 15%.
Answer:B. So that the growth can be carefully monitored and managed
Explanation: Management is an act of planing,coordinating and the executing responsibilities in order to improve efficiency.
When a company grows the number of managers are expected to increase so that the activities of the organization is effectively coordinated,growth can be properly and efficiently monitored and managed.
If growth is not efficiently monitored and managed it will hinder the overall performance of the organization.
Answer:
0.22
Explanation:
Calculation for the weight on common equity
Using this formula
Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)
Where,
Common Equity=1.2
Debt =1.1
Preferred Equity=3
Let plug in the formula
Weight of common equity = 1.2/(1.1+ 3+ 1.2)
Weight of common equity=1.2/5.3
Weight of Common Equity=0.22
Therefore the weight on common equity will be 0.22
