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LenaWriter [7]
3 years ago
12

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capita

l budgeting? a. Retained earnings. b. Preferred stock. c. Accounts payable. d. Long-term debt. e. Common stock.
Business
1 answer:
slavikrds [6]3 years ago
6 0

Answer:

c. Accounts payable.

Explanation:

The capital structure is a mix of debt and the equity

And, the formula to compute the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

Since the account payable is the current liabilities and therefore it is not use for computing the WACC.

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<span>Corruption is stealing of funds that are not supposedly owned by the stealer. In most cases, it mostly happening in institutions and organizations. People are hesitant to report corruption because (1) they would be ‘silenced’ (killed) by the person they are trying to expose or (2) they are part of the dirty job.</span>
7 0
3 years ago
Consider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of
UNO [17]

Answer:

please refer to attachment for more explanation

Explanation:

a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.

b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.

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7 0
3 years ago
Crossroad chooses to report a financial asset at its fair value. The asset trades in two different markets; however, neither mar
Alex

Answer:$81

Explanation:

The options given are:

a. $76

b. $80

c. $81

d. $82

If the principal market that is, the market that the greatest volume of activity can't be identified, then the most advantageous market would be used to determine the fair value of a financial asset.

The most advantageous market is the market that has the highest net price, after transaction cost has been considered even though the transaction costs is not included into the fair value. Therefore, the second market gives the highest net price of $80 after the consideration of the transaction costs, hence, it should be utilized for fair value purposes.

The fair value amount include the transaction costs, which give $80 + $1 = $81

The fair value amount is $81.

5 0
3 years ago
Altogether the national, state, and local governments of the United States spend about a __________ of our gross domestic produc
stealth61 [152]

Answer:

According to the OECD the total expenditure of the US government, including state and local is about a 38% of the GDP.

Explanation:

The federal government expends almost the 55% of the total and the remaining 45% the state and local government.

5 0
4 years ago
After nearly 20 years with his company, mike's job was outsourced. he wants his new job to offer not only a good wage but also j
Firlakuza [10]

It can be best said that Mike is now seeking a job that not only pays well, but also offers intrinsic rewards, in the form of job satisfaction and a sense of accomplishment.

Good compensation is a form of extrinsic rewards, alongside status. Intrinsic rewards are things that you find pleasing because it is satisfying to you, not because you think it would gain you respect or other people’s acceptance.

7 0
3 years ago
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