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3 years ago

Consider the following account balances of Smiths Corp. at the end of the year:

Business

1 answer:

Tems11 [23]3 years ago

8 0

Answer:

Interest revenue, rent expense and salaries expense

Explanation:

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

So, the categorization is shown below:

Interest revenue, rent expense and salaries expense

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Calculate the firm’s WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equ

tester [92]

Answer:

Before tax cost of debt is 7.12%

After tax cost of debt is 4.27%

Cost of equity is 10%

Explanation:

The before-tax cost of debt can be determined using excel rate formula as found below:

=rate(nper,pmt,-pv,fv)

nper is the number of semiannual payments the bond has i.e 20*2=40

pmt is the amount of semiannual payment=$1000*7.5%*6/12=$ 37.50

pv is the current price =$1000*104%=$1,040.00

fv is the face value of $1000

=rate(40,37.50,-1040,1000)=3.56%

The 3.56% is semiannual yield, hence 7.12% per year (3.56%*2)

After-tax cost of debt=7.12%*(1-t) where is the tax rate of 40% or 0.4

after-tax cost of debt=7.12%*(1-0.40)=4.27%

Cost of equity is determined using the below CAPM formula:

Ke=Rf+Beta*(Mr-Rf)

Rf is the risk free rate of 4%

Beta is 1.2

Mr is the market return of 9%

Ke=4%+1.2(9%-4%)=10.00%

7 0

2 years ago

The Sisyphean Company has a bond outstanding with a face value of $ 5 comma 000 $5,000 that reaches maturity in 5 5 years. The b

lilavasa [31]

Answer: $5,219.59905

the price that the bond traded for would be closest to

$5,220 (rounded to whole number)

Explanation:

Using the price of bond formula below:

Price = C × 1 - [(1+r)^-n] /r + F/ (1+r)^n

C = coupon rate = 9.1% of face values ($5,000)

F= Face value(par value) = $5,000

n = number of years to maturity; 5

r = YTM (yield to maturity) = 8% = 0.08

Price = 455 × 1 - [(1+0.08)^-5]/0.08 + 5,000/(1+0.08)^5

Price = 455 × 1 - [(1.08)^-5]/0.08 + 5,000/(1.08)^5

Price= 455 × ( 1 - 0.680583197)/0.08 + 5,000 / 1.46932808

Price= 455 × (0.319416803)/0.08 + 3,402.91598

Price = 1,816.68307 + 3,402.91598

Price= $5,219.59905

≈$5,220 to the nearest whole number.

8 0

2 years ago

In table 10.1, what is the number of unemployed in year 1?

kvv77 [185]

I believe the answer is b

3 0

2 years ago

What are the challenges (trends) Consolidation Tech Plus (CTP), Inc. Should be aware of in the environment of human resource man

makkiz [27]

Answer:

Workforce diversity challenges, technological challenges, and economic challenges

Explanation:

The challenges (trends) Consolidation Tech Plus (CTP), Inc. Should be aware of in the environment of human resource management that require HR to play a more central role in this growing organization are :

Workforce diversity challenges includes Acceptance and Respect, Accommodation of Beliefs ,Ethnic and Cultural Differences,

Gender Equality among others

Technological challenges includes Information security, Risk management and governance,

Regulatory compliance, Technology integration and upgradation, Resource management among others

Economic challenges includes Conflict and Poverty, Competing in a New Era of Globalization,Global Imbalances,Rise of New Powers among others

3 0

2 years ago

Jansen Company’s general ledger showed a checking account balance of $25,120 at the end of May 2021. The May 31 cash receipts of

Alexxandr [17]

Answer:

$2,000

Explanation:

Use the format

Jansen Company’s

Bank reconciliation as of May 31, 2013.

Balance as per Bank Statement

Add Outstanding Checks

Less Unpresented Checks

Balance as per Cash Book

5 0

3 years ago