Answer:
The pension expense for the year is 198,400
Explanation:
According to the reports received by the company we have the following relevant data to calculate the pension expense for the year:
Service cost of $ 193,000
Interest cost of $ 31,000
Considering that the long-term expected rate of return on plan assets is 10%, then $ 256,000×10%= 25,600
Pension expense for the year= Service cost of $ 193,000 +Interest cost of $ 31,000-25,600= 198,400.
Answer: brand extension
Explanation: In simple words, brand extension refers to the process in which a producer use the brand name or trademark of a well known firm on some new product with the objective of increasing sales.
Usually, in such cases the firm giving their trade mark or brand name take share in profit in the form of royalty. Thus, in the given case the strategy used by Bic of introducing perfume with an existing brand name is an example of brand extension.
1. Leads to happier employees — who stick around longer. Assisting your team in obtaining industry designations shows them you share in their desire to be the best they can be.
2. Encourages greater peace of mind.
3. Gives your clients greater confidence in your business.
a.
WACC is calculated as –
WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)
WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))
WACC = 10.46%
b. After tax cost of debt is calculated as –
After tax cost of debt = (1- tax rate) X cost of debt pre-tax
After tax cost of debt = ((1- 40%)*8.1%))
After tax cost of debt = 4.86%
Mutual savings banks are owned by their depositorrs and run by and a self-perpetuating board of directors similary to federal savings and loan associations.
