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3 years ago

The inclusion of leases on the balance sheet as an asset and liability has lowered firm’s debt-to-equity ratio.True / False.

Business

2 answers:

postnew [5]3 years ago

7 0

Answer: False.

Explanation: Including leases on the balance sheet as an asset and liability has not lowered a firm's debt-to-equity ration.

Hope this helps! :)

aleksley [76]3 years ago

5 0

Answer:

false hope this helps

Explanation:

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What is critical thinking?

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Answer:

Critical thinking is the analysis of facts to form a judgment. The subject is complex, and several different definitions exist, which generally include the rational, skeptical, unbiased analysis, or evaluation of factual evidence.

Explanation:

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3 years ago

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The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coup

ch4aika [34]

Answer:

d. $750,000; 8.9%

Explanation:

The computation is shown below:

A. Current Total Market Value

Current market value of debt $150,000 The Current market value of equity $600,000 (10,000 shares × $60) Market Value $750,000

B. Weighted Average Cost of Capital (WACC) WACC = {Equity ÷ (Equity + Debt) × Cost of Equity} + {Debt ÷ ( Equity + Debt ) × Cost of Debt × (1 - 25%)}

= {$600,000 ÷ ($600,000 + $150,000) × 10%} + {$150,000 ÷ ($600,000 + $150,000) × 6% × 0.75}

= ($600,000 ÷ $750,000) × 10% + ($150,000 ÷ $750,000) × 6% × 0.75 = 0.08 + 0.009

= 8.90%

Hence, the correct option is D. $7,50,000 ; 8.90%

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3 years ago

In July 1, 2018, a two-year insurance premium on equipment in the amount of $672 was paid and debited in full to Prepaid Insuran

Helen [10]

Answer:

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Explanation:

The income tax rate is 25%. Income tax is calculated on the taxable income after all other adjustments have been made.

Note that the question gives an income figure of $33,000. This is stated as the <em>income after the preceding adjustments but before income taxes.</em> Hence, this is the amount on which we calculate the income tax expense as follows.

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Debit: Income tax expense $8,250

Credit: Income tax payable $8,250

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