Answer: See explanation
Explanation:
Annuities are referred to as the loans that one would have to pay back over a period of time with a particular interest rate. It should be noted that annuities have consistent payments for the period that the loan will be paid back. An example of annuity is the car loan or the mortgage.
For a level principal loan, it should be noted that the principal payment will remain constant and won't change while there'll be a reduction in the interest rate over the period that the loan will be paid back. This means that there will be w reduction in the payments as the time progresses.
D.
stress can and will cause a crash of the work ethic.
Answer: 0.56
Explanation:
After tax cost of debt is:
= 6% * ( 1 - 20%)
= 4.8%
Assume that the weight for debt is "x" which would mean that the weight for Equity is "1 - x".
WACC = (Weight of equity * cost of equity) + (Weight of debt * After tax cost of debt)
0.12 = ( (1 - x) * 0.16) + 0.048x
0.12 = 0.16 - 0.16x + 0.048x
0.12 - 0.16 = - 0.112x
x = -0.04 / -0.112
x = 35.7%
Weight of equity = 1 - 35.7% = 64.3%
Debt to equity ratio:
= 35.7% / 64.3%
= 0.56
Answer:
Leverage factor will be 1.344
Explanation:
We have given operating income = $29000
And variable expenses is 65 5 of the sales
And fixed expenses = $10000
So contribution margin = $29000+$10000 = $39000
We have to find the leverage factor
Leverage factor is given by
Leverage factor
So leverage factor will be 1.344
The journal entry for the issuance of an interest-bearing note for the purpose of borrowing funds for the business is Debit cash.
<h3>
What is Debit Cash?</h3>
- When a person uses debit cash, money is automatically taken out of their checking account.
- These cards, which are sometimes known as "check cards" or "bank cards," can be used to make purchases of products or services, withdraw cash from an automated teller machine, or make additional purchases at merchants who will accept them.
- You might not be able to make a very large purchase using debit cash because they typically have daily spending limits.
- A personal identification number is typically not required to use a debit card (PIN).
Hence, Debit cash is the journal entry for issuing an interest-bearing note for the purpose of borrowing money for the company.
To learn more about Debit Cash refer to:
brainly.com/question/24077526
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