She should do C, to find the best way to optimize profits.
Answer:
The company's weighted cost of capital is 12.6%
Explanation:
Weighted average cost of capital (wacc) is calculated using the following formula:
wacc = [ kd x (1-tax) x weight of debt] + [ke x weight of equity]
in which: kd is the cost of debt = 12.5%
ke is the cost of equity = 16%
Weight of debt = $120m / ($120m+$180m) = 40%
Weight of equity = $180m / ($120m+$180m) = 60%
--> wacc = [0.125 x ( 1-0.4) x 0.4] + [0.16 x 0.6]
= 12.6%
Answer:
the after tax borrowing cost is $12,000
Explanation:
The computation of the after tax borrowing cost is shown below;
= Annual interest - tax savings
= ($200,000 ×0.10) - ($200,000 × 0.40)
= $20,000 - $8,000
= $12,000
hence, the after tax borrowing cost is $12,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
debit teaching supplies expense
credit teaching supplies
(9000-3840)
9000 is from general ledger
Explanation:
