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3 years ago

6

Gina, a minor, enters into a contract to buy a tractor from herb, an adult. the deal is set aside. restoring herb to the positio

n he held before the contract is the duty of

1 answer:

Andru [333]3 years ago

6 0

It is the duty of the parent of Gina

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Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist

iris [78.8K]

Answer:

a. With New Stock = 8.307%

b. With Old stock = 7.971%

Explanation:

The weighted average cost of capital (WACC) defines the cost rate that blends the capital structure cost including equity, debt, and preferred stock.

Requirement A

If it uses retained earnings as its source of common equity,

Given,

The weight of the combination of the capital structure is -

$W_{d}$ = 40% = 0.40; $W_{p}$ = 5% = 0.05; $W_{e}$ = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, $R_{d}(1 - t)$ =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, $R_{p}$ = 6.4%

Cost of new Equity, $R_{e}$ = 11.51%

We know, the weighted average cost of capital (WACC) =

$W_{d}$ x $R_{d}$ + $W_{p}$ x $R_{p}$ + $W_{e}$ x $R_{e}$

= (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 11.51%)

= 1.656% + 0.32% + 6.3305%

= 8.307%

Requirement B

If it has to issue new common stock, the weighted average cost of capital (WACC) = $W_{d}$ x $R_{d}$ + $W_{p}$ x $R_{p}$ + $W_{s}$ x $R_{s}$

Given,

The weight of the combination of the capital structure is -

$W_{d}$ = 40% = 0.40; $W_{p}$ = 5% = 0.05; $W_{e}$ = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, $R_{d}(1 - t)$ =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, $R_{p}$ = 6.4%

Cost of new Equity, $R_{s}$ = 10.9%

Therefore, putting the value in the equation,

WACC = (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 10.9%)

WACC = 1.656% + 0.32% + 5.995%

WACC = 7.971%

4 0

3 years ago

On january 1st year 1, a company issues $410,000 of 7% bonds

storchak [24]

Answer:

The appropriate journal entries to record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021 are:

White Water journal entries

1-Jan-21

Debit Cash $382,141

Credit Discount on Bonds Payable $27,859

($410,000-$382,141)

Credit Bonds payable $ 410,000

30-Jun

Debit Interest Expenses $ 15,286

($382,141 x 8%/2)

Debit Discount on Bonds Payable $736

Credit Cash $14,350

($410,000 x 7%/2)

31-Dec

Debit Interest Expenses $15,315.08

[($382,141 + 736) x 8%/2]

Credit Discount on Bonds Payable $965.08

($15,315.08-$14,350)

Credit Cash $14,350

($410,000 x 7%/2)

yo

3 0

2 years ago

The basic laws of forecasting help to avoid misapplication or misrepresentation of forecast results.

Zigmanuir [339]

Answer:

Law 2

Explanation:

In probability. As bigger the group we are trying to predict , the higher probability to be more accurate

8 0

3 years ago

BE22-4 Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 80,0

anzhelika [568]

Answer:

$\left[\begin{array}{cccc}Range&80,000&100,000&120,000\\ Materials&400,000&500,000&600,000\\ Labor&480,000&600,000&720,000 \\ Overhead&640,000&800,000&960,000 \\ Variable&1,600,000&2,000,000&2,400,000 \\ Depreciation&200,000&200,000&200,000 \\ Supervision&100,000&100,000&100,000 \\ Fixed&300,000&300,000&300,000\\ Total&1,960,000&2,300,000&2,700,000\\\end{array}\right]$

Explanation:

We multiply the variable component for each relevant range.

Then for the fixed cost, we post the total.

Notice it is given for 1,200,000 units

so total depreciation 1,200,000 x 2 = 2,400,000 = 200,000 per month

Supervisor 1,200,000 x 1 = 1,200,000 = 100,000 per month

5 0

3 years ago

Privett Company Accounts payable $33,264 Accounts receivable 67,719 Accrued liabilities 6,039 Cash 20,980 Intangible assets 39,9

xz_007 [3.2K]

The total amount of quick assets is equal to $119,232. therefore, Option B is the correct statement.

<h3>What are Quick Assets?</h3>

Quick assets encompass cash available or current assets like accounts receivable that may be transformed to cash with minimum or no discounting.

Companies have a tendency to use the short assets to cover short-time period liabilities as they arrive up, so speedy conversion into cash (excessive liquidity) is critical.

Inventories and prepaid expenses aren't quick assets due to the fact they may be hard to transform into cash, and deep discounts are sometimes needed to do so.

The amount of quick assets is equal to Accounts receivable plus Cash plus Marketable securities.

Quick assets = $67,719 + $20,980 + $30,533

Quick assets = $119,232

Hence, the total amount of quick assets is equal to $119,232. Option B is the correct statement.

learn more about quick assets:

brainly.com/question/11209470

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5 0

2 years ago