The unearned consulting revenues are liabilities. A liability, in accounting terms, is an obligation and is found in the balance sheets of companies or businesses. When a company does transactions with other individuals or companies usually they owe amounts to creditors for the goods or services the company acquires. In another sense, a liability is a source of the company’s assets. They can also be considered as claims against the company’s assets. A liability may also include those amounts received by the company in advance of future services. Liabilities include accounts payable, notes payable, salaries payable, interest payable, bonds payable, accrued expenses payable, etc. Their normal balance is credit.
Answer:
10.02%
Explanation:
The computation of the WACC is shown below. The formula of WACC is shown below:
= (Weightage of debt × cost of debt) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= 27% × 7.6% × (1 - 0.40) + 9% × 5.9% + 64% × 12.9%
= 2.052% × (1 - 0.40) + 0.531% + 8.256%
= 10.02%
Answer:
C) marketing channel or channel of distribution
Explanation:
The distribution channel (or marketing channel or downstream supply chain) refers to the chain of businesses that act as intermediaries through which a product or service passes. The distribution channel starts at the producer of the product or service and ends in the final customer.
Answer:
5.71%
Explanation:
The after tax cost of debt=pretax cost of debt*(1-t)
where t is the tax rate of 35% or 0.35
pretax cost of debt=yield to maturity
The yield to maturity can be determined using rate formula in excel as below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest payable by the bonds i.e 12 coupons in 12 years
pmt is the annual coupon=$1000*9.5%=$95
pv is the current market price-flotation cost=$1,100-$48=$1052
fv is the face value of $1000
=rate(12,95,-1052,1000)=8.78%
After tax cost of debt=8.78%
*(1-0.35)=5.71%
