Answer:
The total value will not change.
Explanation:
Stock split occurs when a stock is divided into parts. The value of each stock will decline but there will be more stocks and overall value will remains same. If stock A goes through a stock split then the new price per stock will decline but the overall value to the investor will remain same.
<span>France and Belgium wanted Germany to pay for the entire financial cost of the war
</span><span>The "War guilt clause" </span>placed sole responsibility for the war on Germany and said that they must pay back the allies for the war expenses. It <span>was a statement that Germany was responsible for beginning World War I.</span>
Answer:
The WACC of the firm is 11.91%
Explanation:
The WACC or weighted average cost of capital is the rate of return that a business is expected to pay to all of its security holders- bonds, common stock, preferred stock- or is the cost of capital for the business.
To calculate the WACC, we use the following formula,
WACC = D/A * (1-tax rate) * rD + E/A * rE
Where,
- D/A and E/A is the weightage of debt and assets as a proportion of total assets
- rD * (1-tax rate) is the after tax cost of debt
- rE is the cost of equity or required rate of return on equity
We first need to calculate the required rate of return on equity (r). We will use the CAPM formula for r.
r = 0.034 + 1.37 * 0.082
r = 0.14634 or 14.634%
The total assets are equal to,
Assets = Debt + Equity
If for every $1 of equity, there is $0.45 of debt as given by debt-equity ratio.
Then,
Assets = 0.45 + 1
Assets = $1.45
WACC = 0.45/1.45 * (1-0.23) * 0.076 + 1/1.45 * 0.14634
WACC = 0.11908 or 11.908% rounded off to 11.91%
Answer:
Check the explanation
Explanation:
The journal entry:
Date Particulars Amount DR Amount CR
31 Jan 2020 Notes Acc Dr. $300000
To Customer $30000
( Being Zero interest Notes
Accepting from customer.)
31. Dec 2020 Customer A/cc Dr. $19250
To Interest acc $19250
( Being Interest on notes 300000 at 7% 11 month.)
Interest A/cc DR. $19250
To Profit & Loss $19250
( Being Transfer to Profit & loss Account)
Answer:
E. $330 credit to allowance for doubtful accounts
Explanation:
With regards to the above, the adjusting entry on December 31st is computed as;
= [($15,000 - $1,500)× 0.1)]
= $135
1% of the balance less than 30days
= $1,500 × 0.1 = $150
Total = $45 + $135 + $150 = $330
