Answer:
13.54%
Explanation:
Debt Equity Ratio (Debt/Equity)=0.57
Yield to Maturity (YTM) on bonds (Cost of Debt) (Kd) = 11%
Cost of Equity (Ke) = 17%
Income Tax Rate= 32%
Computation of WACC
Particulars Proportion (1) Cost (2) Weighted Cost (1*2)
Equity 0.6369 17 10.8273
Bond (Debt) 0.3631 7.48 <u>2.7160</u>
Total 1 <u>13.5433</u>
Therefore, the WACC of Company= 13.54%
<u>Working Note 1</u>
<u>Computing Proportion</u>
Debt/Equity=0.57
Therefore Debt= 0.57 Equity
Lets assume Equity = 10
So Debt = 5.7
Hence, Proportion is as follows:
Equity= 10/15.7 =0.6369
Debt= 5.7/15.7 = 0.3631
<u>Working Note 2</u>
After tax cost of Debt = 11 * (1 - 0.32)
After tax cost of Debt = 11 * 0.68
After tax cost of Debt = 7.48%
Answer:
c. higher; higher the demand for; higher.
Explanation:
Labor Union
A labor union is also known either trade union and workers' union and the organisation is a representation of the interests of workers or employees. Some specific functions and objectives of labor unions is to unit the workers and speak on their behalf on issues surrounding availability of work, wages, benefits and all other work conditions. Unions are most often grouped according to specific industries.
Based on the specific objectives of labor unions as mentioned, it is the interest of labor union to fight for higher wages as well as more demand for labor. Higher wages means higher conditions of living and more demand for labor means more employment opportunities. Therefore, making efforts to increase product demand will have ripple effect on demand for labor was well as higher wages.
Therefore, the higher the demand for the product labor produces, the higher the demand for labor and the higher wages will be, ceteris paribus
Answer: Licensing
Explanation:
A licensing is the term which is used to the refers to the official permission that should be taken from the other organization for manufacturing their products and the services.
The main purpose of the licensing is that the organization can easily run their business by accomplish the the licensing practices which include the qualification, training and the professional experience.
According to the given question, the licensing is one of the practices that one company gives permit or rights to the another company for using their technology and the brand name.
Therefore, Licensing is the correct answer.
Answer:
C.a debit to Sales Returns and Allowances and a credit to Accounts Receivable.
Explanation:
The journal entry to record the returns of merchandise is shown below:
Sales return and allowance A/c Dr XXXXX
To Accounts receivable XXXXX
(Being sales return is recorded)
Basically we debited the sales returns and allowances and credited the account receivable so that the proper recording could be made.
Answer: Check attachment
Explanation:
Miscellaneous expenses are the small and infrequent expenses which a business incurs.
Based on the question, the miscellaneous expenses is calculated as:
= $2200 - $223
= $1977
Check the attachment for further details
