Answer:
Exposure to credit risk or interest rate risk.
Explanation:
Cost of capital refers to the average cost of equity and debt and this provides an insight into the capital structure of the company. Major factors affecting the cost of capital include;
a. The extent of international diversification: This will impact the possibility of the firm going bankrupt.
b. Access to international capital markets: These multinational companies have more access to reduced costs that stem from foreign financial support.
c. Size of the firm: The larger size of the firms will make these firms get more considerations from creditors.
d. Exposure to country risk: The risk of expansion also might lead to bankruptcy if things are not properly managed.
Answer:
D. $ 4,000.50
Explanation:
Purchase of merchandise $ 4,000
Return of merchandise $ (275)
Net purchase of merchandise <u>$ 3,725</u>
Discount allowed @ 2 % of $ 3,725 $ (74.50)
Add: Transportation costs allowed <u>$ 350</u>
Total amount paid to merchandise <u>$ 4,000.50</u>
The merchandise returned is considered to determine the net purchases. Since the payment was made on the payment terms and discount is availed, that is also reduced.
The transportation costs is also added to the cost of the merchandise
Answer:
Depreciation Expense for the year 1 is $40,000.
Explanation:
The depreciation expense can be calculated using the double declining balance formula which is as under:
Double declining depreciation expense = Cost / Useful life * 2
By putting the values, we have:
Double declining depreciation expense = $100,000 / 5 years * 2
Double declining depreciation expense = $40,000
The depreciation expense for the first year is $40,000.
Answer:
a) 5%; 55%
Explanation:
The unemployment rate is calculated by dividing the number of people unemployed by the number of people in the workforce:
1/20= 0,05*100= 5%
The participation rate is calculated by dividing the number of people employed by the number of people in the workforce:
11/20= 0,55*100= 55%
Answer: 10.68%
Explanation:
The partner return on equity will be calculated by using the formula given as:
= (Partner Net income/Average Partner equity) × 100
The Partner’s Net income is $6250
Average partner equity = (Opening partner equity + Closing partner equity) × 100
= ($55,000 + $62,000) / 2
= $117,000 / 2
= $58500
The Partner return on equity will then be:
= 6250 / 58500 × 100.
= 10.68%