Answer:
Dec. 31
Dr Bonus expense $50,000
Cr Bonus payable $50,000
Explanation:
Preparation of the December 31 adjusting entry for Bayer.
Based on the information given we were told that they agreed to provide a bonus of the amount of $50,000 to its employees which will be equally shared by all of them in which The bonus will be paid in January which means that the journal entry will be:
Dec. 31
Dr Bonus expense $50,000
Cr Bonus payable $50,000
Answer:
The company's cost of preferred stock for use in calculating the WACC is 9.65%
Explanation:
For computing the cost of preferred stock, the following formula should be used which is shown below
= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)
where,
Flotation cost = 1- rate
= 1- 4% = 0.96
= $9.50 ÷ ($102.50 × 0.96)
= $9.50 ÷ $98.4
= 9.65%
The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.
Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%
Family members can give advice but if they are not a business partner, then they don't have much of a say in the business.
Answer:
Value of firm today = $2,000,000
Explanation:
Provided details are,
Future Cash Flow = $100,000
Expected growth rate = 6.5%
Weighted average cost of capital = 11.5%
Firm's total corporate value = 
= 
= 
= $2,000,000
Thus, value of firm today with the details provided = $2,000,000
It’s the second one,about not being able to see someone’s work-ethic
