Answer:
A) 10.15%
Explanation:
Cost of equity (Re) = 14.06% or 0.1406
cost of preferred stock (Rp) = 7/65 = 0.10769
cost of bonds (Rb) = 7.5% or 0.075
outstanding shares = 2.5 million shares x $42 = $105 million
bonds outstanding = $1,000 x 80,000 bonds = $80 million
preferred stock = $65 x 750,000 = $48.75 million
corporate tax rate = 38% or 0.38
total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75
WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}
WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}
WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%
Answer: Sales for the period is $6,100
Explanation:
1. The purchases for the period was posted into a wrong account which is supply expenses.
We have to adjust that entry by:
DR: Purchases. $4,800
CR: Supplies Exp. $4,800
Being wrong posting of purchases for the period.
2. Sales for the period:
Opening inventory $3,500
Purchases. $4,800
Closing Inventory. ($2,200)
Sales. $6,100
DR: Bank $6,100
CR: Sales. $6,100
Being sales for the month of july
Answer:
1. true
Explanation:
When a project goes from one stage to another, a company usually has to commit more money to the project. As a result of this, it is very important that there is a management review after each phase of the project is completed. This will help to ensure evaluation of the project's progress as well as ensure compliance with the goals of the organization for which the project was set in motion.
Cheers.
Answer:
Cash Over and Short
Explanation:
An income statement account that is used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled Cash Over and Short.
By definition, 'Cash Over and Short' is an account within the general ledger of a company in the income statement in which shortages or overages of cash is posted.
At the end of the period, the balance in the account (whether debit or credit) will determine what side of the income statement it will appear.
Answer: Continuous improvement
Explanation: Continuous improvement can strive for accumulative development over a period of time or an instance of attaining achievement in a specific activity all at one time. It is usually an incremental never stopping modification that emphasizes on improving the productivity and efficiency of a company to achieve its adopted principle of action and goals.