Answer:
the capital structure weight of the firm's equity will be 57.14 %.
Explanation:
Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.
A debt–equity ratio of 0.75 means:
Debt : Equity = 0.75 : 1
The Total Ratio will be = 0.75 + 1.00
= 1.75
Therefore, the capital structure weight of the firm's equity will be :
Equity Weight = Equity Ratio ÷ Total Ratio
= 1.00 ÷ 1.75
= 0.5714 or 57.14 %
Answer:
(a) Journalize the payment of the bond interest on January 1, 2022.
Dr Interest payable - bonds payable 40,400
Cr Cash 40,400
The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.
Dr Bonds payable 100,000
Dr Call premium 3,000
Cr Cash 103,000
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
interest expense = $405,000 x 8% = $32,400
Dr Interest expense - bonds payable 32,400
Cr Interest payable - bonds payable 32,400
Answer:
Rice is so cheap and truffles are so expansive because D. People eat so much rice that an additional serving of rice has little marginal value, but the marginal value of another serving of truffles is very high.
Explanation:
When it comes to tasty or nutritious foods, there should not be any reason to be more expensive than others food stuffs. However, they often cost a little more. Regarding rice and its easy way of cooking, it is not a strong argument to talk about the price. So the right answer D, due to the fact that is true that eating a higher rate of rice won't have such a great marginal value as it will with truffles. It has to do a lot with higher demand of rice.
Answer:
Correct Answer:
b. Less extensive testing of records
Explanation:
Technology which is the use of machines or electronical devices to make work easier is applied in most organizations by organizational managers. <em>Unfortunately, less extensive testing of records is not one of its uses but rather detailed and extensive testing in order to check if there is any error in the records.</em>
Answer:
Price of bond= $1,922.92
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>
Value of Bond = PV of interest + PV of RV
Semi-annual interest = 4.93% × 2,000 × 1/2 =49.3
Semi-annual yield = 5.29%/2= 2.65%
PV of interest payment
PV = A (1- (1+r)^(-n))/r
A- 49.3, r-0.02645, n- 16×2
= 49.3× (1-(1.02645)^(-10)/0.02645)
= 1,055.521
PV of redemption Value
<em>PV = F × (1+r)^(-n)
</em>
F-2000, r-0.02645, n- 16
×2
PV = 2,000 × 1.02645^(-16×2)
PV = 867.402
Price of Bond
1055.52 + 867.40 =1,922.92
= $1,922.92
