Answer:
Unearned Fees A/c Dr. $8,370;
Fees Earned A/c Cr. , $8,370.
Explanation:
The amount of $33,480 paid is for 36 months. Subscription per months will be $33,480 divided by 36 months
=$33,480 / 12
=$930
The subscription was paid on April 1st. Between April 1st and December 31st, there were 9 months.
The subscriptions for that year will be
= $930 x 9
=$8,370
The journal entries will be as follow
Unearned Fees A/c Dr. $8,370;
Fees Earned A/c Cr. , $8,370.
Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the banks add the entire $100 to reserves, the money supply increases, but if the bank lends out some of the $100, the money supply decreases.
Answer:
WACC is 9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )
As per given data
Market Values
Equity = $7 billion,
Preferred stock = $2 billion
Debt = $13 billion
Cost
Equity
Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.
Formula for CAPM
Cost of Equity = Risk free rate + beta ( market return - risk free rate )
Cost of Equity = Rf + β ( Mrp )
Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%
Preferred stock = $2 / $26 = 0.077 = 7.7%
Debt = 8%
Placing values in the formula
WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )
WACC = 5.03% + 3.31% + 0.7% = 9.04%
This company uses job rotation. It is the organized movement of staffs and
personnel from one job to a different job inside the
organization to attain numerous human resources purposes. For instance positioning
new employees, improving career development teaching employees, and stopping job dullness
or exhaustion.
