Answer:
The WACC is 8.66%
Explanation:
The WACC or weighted average cost of capital is the cost to firm of its capital structure which can have 3 components namely debt, preferred stock and common stock. We take the weighted average of these components and their respective costs to calculate WACC. Furthermore, we take the after tax cost of debt for WACC calculation and that is why we multiply the cost of debt by (1-tax rate).
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
WACC = 0.33 * 0.065 * (1-0.28) + 0.08 * 0.06 + 0.59 * 0.1125
WACC = 0.086619 or 8.86619% rounded off to 8.66%
The answer is D the answer depends on the interest rate which is not mentioned so there is not enough info
Answer and Explanation:
The journal entry for recording the bad debt expense is shown below:
a. In case of when direct write off method is used
Bad debt expense $13,780
To Account receivable-Wil Treadwell $13,780
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expenses and credited the account receivable as it decreased the assets
b. In case of when allowance method is used
Allowance for doubtful accounts $13,780
To Account receivable-Wil Treadwell $13,780
(Being the allowance is recorded)
Here the allowance is debited as it increased the assets and credited the account receivable as it decreased the assets
Answer:
economies of scale
Explanation:
When you buy shares you have to pay dealing costs and admin fees, which can eat away at the value of your investment. In an investment company, all the investors pool their money and split the admin costs. You can end up paying much less.
Answer:
At 18,600 pounds, cost of both the machines would be equal
Explanation:
At Indifference point of production amount (pounds), the total cost of each machine will be equal
.
Indifference Point is calculated as: Change in Fixed Costs/Change in Variable Costs
Indifference Point = (8901 - 7599) / (0.52 - 0.45)
= 1302 / 0.07
= 18,600 pounds
At 18,600 pounds, cost of both the machines would be equal
