Answer:
Cost of capital=11.18%
Explanation:
First We will calculate the Equity of firm:
Equity= Number of share* Book value per share
Equity= 10,000* $25
Equity= $250,000
Long-term debt=$300,000
Expected rate of return=15%=0.15
Current yield to maturity (rdebt)=8%=0.08.
Value of firm=Equity+Long-term debt
Value of firm= $250,000+$300,000
Value of firm= $550,000
Formula:


Cost of capital=11.18%
Answer:
<em>The adjustment for overapplied overhead </em><em><u>decreases cost of goods sold and increases</u></em><em> </em><em>net income</em>
Answer:
D) $4,200
Explanation:
the business investigation expenses of a taxpayer who is already engaged in a similar trade or business are fully deductible in the year incurred regardless of whether or not the taxpayer goes into a new business.
Therefore, the maximum amount of deduction for the current year is
$4,200.
Answer:
c) Credit to Cash for $242
Explanation:
Petty cash, beginning = $300
Delivery expense = $53
Merchandise inventory = $167
Miscellaneous expense = $22
Petty cash, Ending = $58
The journal to record the reimbursement of the accounts will be:
Event Account Title and Explanation Debit Credit
1 Delivery expense $53
Merchandise inventory $167
Miscellaneous expense $22
Cash $242