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zhannawk [14.2K]
3 years ago
11

What is the weighted average cost of capital for a corporation that finances an expansion project using 35% retained earnings an

d the rest as debt capital
Business
1 answer:
Sindrei [870]3 years ago
4 0

Answer:

11.75%

Explanation:

In order to calculate the weighted average cost of capital (wacc), we can use the following formula:

wacc = (weight of debt x cost of debt after tax) + (weight of equity x cost of equity)

In this question, since the information about cost of debt and cost of equity are missing, let us assume the cost of debt = 10%, and cost of equity = 15%. The calculated wacc will be equal to:

wacc = [ (1-0.35) x 0.1 ] + [ 0.35 x 0.15 ]

          = 11.75%

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Which of the following is a characteristic of a partnership? a.The partners have limited liability. b.The partnership is subject
Ulleksa [173]

Answer:

The correct answer is letter "C": The partnership has a limited life.

Explanation:

A partnership is an organization with two or more members running a business. They share the profits in percentage terms in proportion to their partnership value. There are two types of partnerships: general partnerships (<em>unlimited liability</em>) and limited partnerships (<em>liability proportional to the contribution to the partnership</em>).

The partnership dissolves and a new partnership is created when one of the partners is removed, retired or deceased or even when a new partner is introduced. Thus, <em>partnerships have a limited life</em>.

8 0
3 years ago
brussels enterprises issues bonds at par dated january 1, 2021, that have a $2,700,000 par value, mature in four years, and pay
Nadusha1986 [10]

The journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

<h3>Journal entry</h3>

1. January 1

Debit Cash $2,700,000

Credit Bonds payable $2,700,000

(To record  issuance of bonds for cash)

2. June 30

Debit bond  Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record  first semiannual interest payment)

December 31

Debit bond  Interest expense $81,000

Credit Cash $81,000

($2,700,000×6%/2)

(To record second semiannual interest payment)

3. December 31, 2021

Debit Bonds payable $2,700,000

Credit Cash $2,700,000

(To record  payment of bonds payable)

Therefore the journal entry for the issuance of bonds for cash on January 1 is: Debit Cash $2,700,000, Credit Bonds payable $2,700,000.

Learn more about journal entries here:brainly.com/question/14279491

#SPJ1

6 0
1 year ago
If the Federal Reserve buys $8,500 worth of securities from non-bank public, and the non-bank public then keeps the payment from
vova2212 [387]

Answer:

c: C increases by $8,500 and the MB increases by $8,500

Explanation:

If the Federal Reserve buys $8,500 in securities from non-bank public and then payment is kept from the bank in form of cash, theC increases by $8,500 and the MB increases by $8,500

5 0
3 years ago
Can someone make a ggle account for me please
pshichka [43]

Answer:

sure thing

Explanation:

its all set up for you. here is your username and password. I dont have access to your account just to let you know

username: fun05934

Password:funnyguy67

5 0
3 years ago
Barton, Inc. is a corporation with ordinary net business income of $130,000, dividends of $2,000, a long-term capital gain of $5
Levart [38]
Business net income $130,000
Dividends $2,000
Long-term capital gain $5,000
Short-term capital loss $10,000
$130,000 + $2,000 + $5,000 = $137,000
$137,000 - $10,000 = $127,000

Based on my these figures, Barton’s taxable income is $127,000.
5 0
2 years ago
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