Answer:
That is why i did not play this game.
Explanation:
Lets i have initially $100 .
There are 2 white and 3 black balls.
I have to draw 3 balls
If i draw no white balls, i lose $10; if i draw one white ball, i lose nothing; and if i draw both white balls, you gain $10.
So the final fortune =x
x = 100 x 1/2 x 1/2 x 3/2 x 3/2
x= $56.25
That is why i did not play this game.
Answer:
Explanation:
Financial activities would basically be anything that involves money but is does not involve an asset with value. This would instead be considered Investing activities if you are buying or selling any asset financial asset. Therefore the following would be considered...
a. Purchase of equipment (F)
b. Purchase of treasury stock
(I)
c. Reduction of long-term debt (F)
d. Sale of building (I)
e. Resale of treasury stock (I)
f. Increase in short-term debt (F)
g. Issuance of common stock (I)
h. Purchase of land (I)
i. Purchase of common stock of another firm (I)
j. Payment of cash dividends (I)
k. Gain on sale of land (I)
l. Repayment of debt principal (F)
Answer:
A). Failed to exercise due care.
Explanation:
As per the given details, Bugle Corp. needs to prove that Dennis & Co. failed to exert the required care which it was supposed to exercise while auditing the financial statements of Stanley Corp. <u>This failure led Bugle Corp. to suffer major losses and thus, they must be accountable for this loss under the general law as they ignored the potential hazards</u>. Legally, this is unlawful as they were expected to ensure that these hazards must have addressed and told Bugle Corp. on time but since they failed, they are guilty of the crime. Hence, <u>option A</u> is the correct answer.
Answer: 0.56
Explanation:
After tax cost of debt is:
= 6% * ( 1 - 20%)
= 4.8%
Assume that the weight for debt is "x" which would mean that the weight for Equity is "1 - x".
WACC = (Weight of equity * cost of equity) + (Weight of debt * After tax cost of debt)
0.12 = ( (1 - x) * 0.16) + 0.048x
0.12 = 0.16 - 0.16x + 0.048x
0.12 - 0.16 = - 0.112x
x = -0.04 / -0.112
x = 35.7%
Weight of equity = 1 - 35.7% = 64.3%
Debt to equity ratio:
= 35.7% / 64.3%
= 0.56