Debbie's cookies have a return on assets of 12. 6 percent and a cost of equity of 14. 8 percent. 6.81% is the pretax cost of debt if the debt-equity ratio is 1:38. ignore taxes.
WACC = Wd X Kd + We X Ke
12.6% = 0.38/1.38 X (Kd) +(1/1.38) X 14.8%
Kd= 6.81% (0.126-((1/1.38)*0.148)) * (1.38/0.38).
Your assets are what you have of value. Money, property, and skills are all assets. When we talk about assets, we talk about nice-to-haves. valuable or useful. Money is indeed an asset. A house you own is an asset.
A person or person cannot be considered assets like tangible property such as equipment, because, unlike tangible assets, human beings cannot be owned, managed, or measured in money for future economic benefit.
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Answer:
$300
Explanation:
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)
= 6/12 * $600
= $300
The insurance expense on the annual income statement for the first year ended December 31 is $300.
The manager of the cost center does not have control over revenue or the use of investment funds.
<h3>What is a Manager?</h3>
A manager is referred as an individual in an organization who controls and coordinates functions and operations and notifies the use of resources in an appropriate manner after assigning them and helps in strategy development.
The manager of the cost center does not have control over revenue or the use of investment funds. Only managing costs within the budget is under the responsibility of a cost center manager.
In order to increase organizational efficiency and make revenue, internal management makes use of cost center data.
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Answer:
The correct answer is: under-capitalization.
Explanation:
Under-capitalization refers to the state in which a company runs out of money to pay its creditors pushing them to request loans from financial institutions. Normally, this situation arises when the firm did not outline a correct budget to keep the business up and running or incurred in operations that were not part of it.