A.) investment in capital
This would be the best foster for economic growth
Answer:
Wei company General Journal
Feb 01
Dr Allowance for doubtful accounts $9,200
Cr Accounts receivable—Oakley Co. $2,100
Cr Accounts receivable—Brookes Co. $7,100
June 05
Dr Accounts receivable—Oakley Co. $2,100
Cr Allowance for doubtful accounts $2,100
June 05
Dr Cash $2,100
Cr Accounts receivable—Oakley Co. $2,100
Explanation:
Feb 01
(To record write off accounts receivables)
June 05
(To record reinstatement accounts receivable)
June 05
(To record receipt from accounts receivable)
Answer:
I) The firm will reject good low-risk projects
II) The firm will accept poor high-risk projects
Explanation:
<h2>Cost of Capital:</h2>
- The required return on the existing firm assets. It is based on the risk of assets.
- The risk of firm’s overall assets is equal to the weighted average risks of firm’s debt, preferred stock and common equity.
- The cost of capital of a firm equals the weighted average of the cost of debt, the cost of preferred stock, and the cost of common equity
Each project has different risk profiles, using one cost of capital for project evaluation might provide misleading results and the investor or company may end up accepting high risk projects or may reject low risk good projects.
Answer:
The average daily balance=$113.32
finance charge =$1.98
the new balance =$101.97
Explanation:
The formulas for computing each of the amounts above are found in the excel file attached. Kindly note the formulas for subsequent assignments.