a small piece of ownership in a company - stock
a company’s initial offering of stock - IPO
a portfolio of stocks and bonds - mutual funds
a public stock exchange - NASDAQ
Answer:
$130,608
Explanation:
To calculate the cost of goods sold per the above information, we need to calculate first the portion of the trade discount on the goods purchased.
Trade discount = Goods purchased × 20% trade discount
= $181,400 × 20%
= $36,280
The next step is to calculate Sales and Gross profit
Sales = [$181,400 - $36,280] = $145,120
Gross profit = $145,120 × 10% = $14,512
Therefore,
Cost of goods sold = Sales - Gross profit
Cost of goods sold =$145,120 - $14,512
Cost of goods sold = $130,608
Hence, Oriole Co. would record $130,608 as cost of goods sold.
Answer:
WACC is 9.35%
Explanation:
In order for us to compute the weighted average cost of capital, we have to first find the cost of equity (Ke) and the cost of debt (Kd)
1. Ke can be found by using CAPM - Capital Asset Pricing Model.
CAPM Formula: Ke = Rf + b(Rm-Rf)
where Rf = Risk free rate; Rm = Return expected of the market; b = beta
Therefore = Ke = 3% + 0.9(11%-3%) = 10.2%
2. Kd = Coupon rate (1 - tax rate), coupon rate is 7%, tax rate is 35%
therefore Kd = 7 (1-0.35) = 4.35%
Lastly we apply the WACC Formula which is Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt)
We are not given the values of equity and debt, bur we are given the fractions; we will use the fractions.
Therefore: Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt) = (10.2%*85%)+(4.35%*15%) = 9.35%
Explanation:
Advantage is profit easy to earn money etc
Answer:
B. $96,000
Explanation:
$264,000 - $168,000 = $96,000
