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3 years ago

You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.

Business

1 answer:

olga55 [171]3 years ago

5 0

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

= (8,000*$1,060) + (310,000*$57) + (15,000*$72)

= $8,480,000 + $17,670,000 + $1,080,000

= $27,230,000

weight of debt = debt/total finance

= $8,480,000/$27,230,000

= 0.31

weight on equity = equity/total finace

= $1.080.000/$27,230,000

= 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

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Union Apparel has sales including sales taxes for the month of $552,000. If the sales tax rate is 6%, what are Union Apparel's s

nadezda [96]

Answer:

Union Apparel's sales for the month is $520,000

Explanation:

For computing the monthly sales excluding taxes, the calculation is shown below:

= Sales including sales taxes × Sales ÷ sales with sales tax

where,

1 is the sales value

And, sales value with tax equals to

= 1 + 6 % = 1 + 0.06 = 1.06

Now, put these values to the above formula

So, the value would be equal to

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= $520,000

Hence, Union Apparel's sales for the month is $520,000

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4 years ago

Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contribu

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Answer:

$102,000

Explanation:

Since Brooke contributed the land, the gain realized before the land was contributed = $120,000 - $90,000 will be allocated entirely to her. She will also be allocated 40% of the gain after the contribution was made = ($150,000 - $120,000) x 40% = $30,000 x 40% = $12,000.

So the total gain recognized by Brooke will be $90,000 + $12,000 = $102,000.

Partnerships are pass through entities, the partners are taxed, not the partnership itself.

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3 years ago

The inventory subsidiary ledger is used a.to keep track of inventory sold. b.to keep track of proper inventory maximum and minim

Serggg [28]

Answer:

All of these choices are correct

Explanation:

The inventory subsidiary ledger is used to keep track of the true inventory levels all the time in a company and whether inventory goes missing or not, they keep track of every movement of inventory that happens in a company.

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3 years ago

Read 2 more answers

The unemployment rate in a town in which 65,400 persons are in the labor force and 11,000 are unemployed equals:_____.

BartSMP [9]

The unemployment rate is 16.8%

<h3>What is the unemployment rate?</h3>

The unemployment rate is the ratio of the unemployed to the total labour force. The unemployed is made up of people who do not have a job but are actively searching for employment. The labour force consists of people between 18 to 65 years old.

The unemployment rate = (unemployed / labour force) x 100

(11,000 / 65,400) x 100 = 16.8%

To learn more about unemployment, please check: brainly.com/question/10940465

#SPJ1

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2 years ago

Which of the following statements best describes the difference between the USDA’s and the FDA’s responsibilities concerning foo

leva [86]

Answer:A. The USDA ensures save farming and harvesting practices while the FDA monitors what is put on the food labels!

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4 years ago