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3 years ago

What is accounting theory

Business

1 answer:

Gemiola [76]3 years ago

8 0

Answer:

a set of assumption framework and methodologies used in the study of application of financial reporting principles

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Five times the sum of a number and 27 is greater then or equal to six times the of that number and 26. what is the solution set

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5x + 27 \geqslant 6x + 26

27 - 26 \geqslant 6x - 5x

1 \geqslant x

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The price of an automobile is now $8325 which is 450% of its price seven years ago. What was the price of the car seven years ag

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Simon is a buyer represented by Peter. Peter shows Simon several homes currently on the market. What is Peter's relationship to

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Answer:

The sellers are peter’s customers.

Explanation:

The sellers are peter’s customers because in this situation peter is showing them the houses available in the market. Thus we can consider that the owner of the homes is customers to Peter because here the work of peter is to help in the sale of homes. Therefore it may be said that the sellers are peter's customer.

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3 years ago

Read 2 more answers

Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons.

Sergeeva-Olga [200]

Answer:

NO Balloons' WACC = 7%

Explanation:

WACC = Weighted average cost of capital

The weighted average cost of capital (WACC) refers to calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

Respective calculation of WACC:

Step 1: Calculate the value of equity:

Number of shares = 12 million

Share price = $19.5 per share

Value of equity = 12 million shares * 19.5/share = $234 million (A)

Step 2: Calculate the value of debt:

Bonds = 200,000

Value of debt = 200,000 bonds * 1000 face value/bond * 89% sale price = 178 million (B)

Step 3: Calculate the firm value:

Total firm value (A+B) = 234 + 178 = 412 million

Step 4: Calculate the weight of equity:

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

Step 5: Calculate the weight of debt:

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

Step 6: Calculation of WACC :

WACC = weight of equity * cost of equity + weight of debt * cost of debt = 0.5680 * 9.275% + 0.4320 * 4% = 7%

7 0

3 years ago

What is accounting theory​

What is accounting theory