Correct answer choice is:
D. April 30
Explanation:
The billing cycle for a credit card or whatever sort of cyclical account is the duration of time connecting billings. For instance, a billing cycle may begin on the 1st day of the month and finishes on the 30th day of the month. Or, it may proceed of the 15th of an individual month to the 15th of the following month.
Answer:
a. 4.94%
b. 11.48%
Explanation:
Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.
We proceed as follows;
a. From the question;
The debt equity ratio = 1.15
since Equity = 1 ; Then
Total debt + Total equity = 1 + 1.15 = 2.15
Mathematically ;
WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)
Where WACC = 8.6%
Cost of equity = 14%
Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15
Pretax cost of debt = ?
Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15
Tax rate = 21% = 0.21
Substituting these values, we have;
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))
Pretax cost of debt = 4.94%
b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt
8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15
Cost of equity = (8.6%-3.26279%)/(1/2.15)
Cost of equity = 11.48%
List your income and your assets and find the total. Iam not really sure that's the answer, but it sounds right.
Answer:
the days payable outstanding is 91.25 days
Explanation:
The computation of the days payable outstanding is shown below:
Days' payable outstanding is
= (Accounts Payable ÷ Cost of goods sold) × total number of days in a year
= ($25,000 ÷ $100,00) × 365 days
= 91.25 days
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Hence, the days payable outstanding is 91.25 days
