A business is a productive organization—an organization whose purpose is to create goods and services for sale, usually at a profit. Business is also an activity. One entity (e.g., a person, an organization) “does business” with another when it exchanges a good or service for valuable consideration. Business ethics can thus be understood as the study of the ethical dimensions of productive organizations and commercial activities. This includes ethical analyses of the production, distribution, marketing, sale, and consumption of goods and services
Answer:
a. 4.94%
b. 11.48%
Explanation:
Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.
We proceed as follows;
a. From the question;
The debt equity ratio = 1.15
since Equity = 1 ; Then
Total debt + Total equity = 1 + 1.15 = 2.15
Mathematically ;
WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)
Where WACC = 8.6%
Cost of equity = 14%
Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15
Pretax cost of debt = ?
Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15
Tax rate = 21% = 0.21
Substituting these values, we have;
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))
Pretax cost of debt = 4.94%
b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt
8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15
Cost of equity = (8.6%-3.26279%)/(1/2.15)
Cost of equity = 11.48%
Answer and Explanation:
The preparation of schedule showing physical units of production is prepared below:-
Rosenthal Company
Physical units of production
For the year June 2020
Units to be accounted for:
Work in process, June 1: -
Started into production 22,660 units
Total units 22,660
Units to be accounted for:
Transferred out 20,600 (22,600 - 2,060)
Work in process, June 30 2,060 units
Total units 22,660 units
The type of account Samantha should recod the transaction is the contra account.
Answer:
4. the normal process of jobs being created and destroyed.
Explanation:
Frictional unemployment is unemployment that is related to switching of jobs also called transitional unemployment. It occurs when workers leave jobs and get jobs as a result of normal labor tunover in a healthy economy.
In a growing economy frictional unemployment is the lowest type of employment bad there are abundant opportunities for workers.
Quitting a job is a voluntary type of frictional unemployment, while when an employee bis fired it is involuntary type of frictional unemployment.
