Answer:
WACC = 0.06192 or 6.192%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of one or all of the following components namely debt, preferred stock and common stock.
For a company with 2 components of capital structure, the formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wE * rE
Where,
- wD and wE is the weight of debt and equity
- rD and rE is the cost of debt and equity
- we use the after tax cost of debt so we multiply the rD by (1 - tax rate)
Total weight of capital structure = 1 + 4 = 5
Weightage of debt = 1/5
Weightage of equity = 4/5
WACC = 1/5 * 0.04 * (1 - 0.26) + 4/5 * 0.07
WACC = 0.06192 or 6.192%
Answer: The Reserve Bank of India keeps all of Advika’s foreign currency for her.
Explanation:
When a country uses exchange controls, it limits the amount of foreign currency that can come into a country. This is usually done to ensure stability in the money market of the country as well as to improve the balance of payments for the country.
One way of implementing exchange control is for all foreign currency to go through the Central bank of the country. Should a citizen need access to foreign currency, they would need to apply to the central bank to access it. With India having an exchange control system, the Reserve Bank of India keeps all foreign currency and Advika would have to apply for it should she need it.
Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000
Answer: Other Engineers
Explanation:
Richard can be sued by motorist in the event of the collapse of the road which he supervised construction, and the case would be considered with the already established engineering standards. The engineer standard directs that during construction or fabrication in engineering, the engineer should give little or no allowance for failure, because failure can lead to serious injuries or loss of life.
Answer:
Whistle blowing
Explanation:
Whistleblowing - it is referred to that act which draws the attention of the authorities toward wrongdoing or misconduct or any foul thing within any organization.
In the given question also, Mike also discovered misconduct in the project. despite having fear of losing job mike informed the authorities about misconduct