Answer:
amount of insurance expense = $3200
Explanation:
given data
policy purchased = $9,600
to find out
What is the amount of insurance expense that would appear on the company's income
solution
we know insurance purchased on 1 may at $9600
and at statement 31st December is
time is may to December is = 8 month
so for 2 year insurance = 24 months
so
amount of insurance expense =
amount of insurance expense = 400 × 8
amount of insurance expense = $3200
Answer: a. 0.6989
b. 0.2057
Explanation:
The book value of equity is book value pee share multiplied by the number of shares. The book value of debt is the face value of a company's debt.
The attached picture shows the calculations.
Answer:
the after tax borrowing cost is $12,000
Explanation:
The computation of the after tax borrowing cost is shown below;
= Annual interest - tax savings
= ($200,000 ×0.10) - ($200,000 × 0.40)
= $20,000 - $8,000
= $12,000
hence, the after tax borrowing cost is $12,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered