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Ghella [55]
3 years ago
9

​(Defining capital structure​ weights) In August 2015 the capital structure of the Emerson Electric Corporation​ (EMR) (measured

in book and market​ values) was as​ follows: ​ ($ Millions) Book Value Market Value ​ Short-term debt ​ $2 comma 600 ​$2 comma 600 ​ Long-term debt 4 comma 246 4 comma 246 Common equity Modifying 8 comma 051 with underline Modifying 35 comma 711 with underline Total capital Modifying $ 14 comma 897 with double underline Modifying $ 42 comma 557 with double underline What weights should Emerson use when computing the​ firm's weighted average cost of​ capital?
Business
1 answer:
Vikki [24]3 years ago
6 0

Answer:

0.1609 and 0.8391

Explanation:

The computation of the weight required to compute the  firm's weighted average cost of​ capital is shown below:

For Weight of debt

= (Short-term debt + Long-term debt) ÷ (Total Capital )

= ($2,600 + $4,246) ÷ ($42,557)

= 0.1609

For weight of equity

= Common Equity ÷ Total Capital

= $35,711 ÷ $42,557

= 0.8391

We simply divide the debt with its total capital so that the weight of capital structure could arrive

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Answer:

Decrease Profit and Inventory Asset value as well.

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7 0
3 years ago
​Ronald, Ross, and Carol opened a partnership firm. Ronald has a capital of​ $77,000; Ross has a capital of​ $119,000; and Carol
gtnhenbr [62]

Answer:

A. Carol, Capital is debited for $4,500

Explanation:

The question says to determine amount to be included in the journal entry to record Ronald's withdrawal from the partnership

Assumption: Equal Profit- loss sharing is the agreement between the existing partners.

First premise: Ronald's Capital in the Partnership = $77,000

However, Ronald received a payment of $86,000 meaning that there is an excess of $86,000-$77,000= $9,000

Since the agreement is equal profit and loss sharing, it means each of Ross and Carol will contribute 1/2 of the $9,000.

The journal entry to record this transaction is as follows:

Particulars                                          Debit                     Credit

Carol Capital Account                      $4,500

Ross Capital Account                       $4,500

Ronald Capital Account                                                  $9,000

Being the equal contribution of excess amount paid to Ronald on exit from the partnership by Carol and Ross.

Based on the multiple choices, the correct answer is Carol, Capital is debited for $4,500

4 0
3 years ago
Jacobsen Corporation prepares its financial statements applying U.S. GAAP. During its 2016 fiscal year, the company reported bef
maxonik [38]

Answer:

Jacobsen Corporation

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Explanation:

The income from continuing operations is the same thing as the operating income.  It is the pre-tax income that is reported on Jacobsen Corporation's income statement for the year ended December 31, 2016.  The tax rate of 30% is applied on this figure to obtain the income tax expense for the year.  But, for Jacobsen that has other unusual items, these are taken into consideration before the income tax is imputed to obtain the after-tax income.

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3 years ago
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Amanda [17]

Learn how to spell 'what' and 'Plus'

5 0
3 years ago
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How do I surprise my mom with a special guest and get her to make extra dinner for them so that they can eat with us to without
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Answer:

tell her to make extra!

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you can use excuses such as wanting to pack leftovers for a meal the next day, or saying you're extra hungry

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