Answer:
The Current account is for goods and services.
The Financial account is for exchange of currencies and financial assets across countries.
Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. <u>DEBIT CURRENT ACCOUNT. CREDIT CURRENT ACCOUNT. </u>
Miguel buys the good in the U.S. and then sends it so this falls under the current account alone.
Arielle, a French tourist, stays at a hotel in San Francisco and pays $400 for it with her debit card issued by a French bank. <u>DEBIT FINANCIAL ACCOUNT. CREDIT CURRENT ACCOUNT. </u>
The Financial account should be debited to show that currency is coming into the U.S. from outside the country and current account should be credited for services rendered.
A U.S. computer manufacturer purchases hard drives from a Korean company, paying the funds from its bank account in Korea. <u>DEBIT CURRENT ACCOUNT. CREDIT FINANCIAL ACCOUNT. </u>
Current account should be debited to reflect that goods are coming into the country but the financial account should be credited to show that currency is leaving the ownership of an American entity so it is passing out of American hands.
Understand culture diversity( ◠‿◠ )
Answer:
Millions of software programs have been created and have helped to improve the economy. This is an
example of___new technology___.
Answer:
D, Flint can simply write ot the SEC to voice his concerns.
Explanation:
Since Flint does not have a case that warrants a court challenge but rather an observation, Flint can simply write to the SEC to intimate them about his observations and/or findings, as well as let the SEC know the position of his company on the rule being proposed by it.
Cheers.
Total capital = 10 + 8 + 2 = 20 Million
Weight of bonds (Wd) = 10/20 = 0.5
Weight of preferred stock(Wp) = 2/20 = 0.1
Weight of stock equity(We) = 8/20 = 0.4
Cost of debt = YTM of the bonds issued (We assume its annual coupon)
YTM =rate(nper,pmt,pv,fv) in excel =rate(20,60,-950,1000) = 6.4521%
Cost of debt after tax(Rd) = 6.4521*(1-0.34) = 4.2584%
Cost of preferred shares (Rp) = Preferred dividend/ price = 2.5/25 = 0.10 =10%
Cost of equity (Re) = Rf + beta*(Rm-Rf) = 3.5 + 1.2*(13-3.5) =14.9%
WACC = Wd*Rd + Wp*Rp + We& Re
WACC = 0.5*4.2584% +0.1*10% + 0.4*14.9% = 9.089 = 9.09%
