Answer:
(A.) the future tax rates have been enacted into law.
Explanation:
In case when the rate of tax instead of the current tax rate used to compute the deferred amount related to income tax for the balance sheet if the rate of future tax is enacted in law i.e means when the future tax rate imposed under the taxation rules and regulations
Therefore option A is correct and the other options are incorrect
Answer:
Cost of debt (Kd) = 6.1%
Cost of preferred stock = <u>Dividend paid</u>
Current market price
= $2.53
$33
= 0.0767 = 7.67%
Risk-free rate (Rf) = 2.2%
Beta (β) = 1.11
Market risk premium (Rm - Rf) = 6.7%
Cost of equity (Ke) = Rf +β(Rm - Rf)
Cost of equity (Ke) = 2.2 + 1.11(6.7)
Cost of equity (Ke) = 9.637%
WACC = Kd(D/V)(1-T) + Kp(P/V) + Ke(E/v)
WACC = 6.1(39 /100)(1 -0.35) + 7.67(11/100) + 9.637(50/100)
WACC = 1.55 + 0.84 + 4.82
WACC = 7.21%
Explanation:
In this case, cost of debt has been given. Cost of preferred stock is calculated as current dividend paid divided by current market price.
Cost of equity is calculated based on capital asset pricing model, which is Risk-free rate plus beta multiplied by the market risk premium.
WACC equals after-tax cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure plus cost of equity multiplied by proportion of equity in the capital structure.
Answer:
Intervention
Explanation:
Structural change is defined as a change to corporate structure that can be as a result of internal or external factors and affects the mode of operation of the company.
Intervention are measures taken to improve organisation structure and processes.
It seeks to minimise negative effects and maximise effectiveness of the organisation.
This is the ideal stage for formal and organisational change to occur.
New systems can be put in place that will remove inefficiency in the business.
Answer:
Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238
Credit Notes Receivable $10,200.
Explanation:
Preparation of the the journal entry to record the dishonored note
Debit Accounts Receivable—Valley Spa $10,438
($10,200+$238)
credit Interest Revenue $238
($10,200 x 14% x 60/ 360)
Credit Notes Receivable $10,200
(To record the dishonored note)
Answer:
I don't know what is meaning
Explanation:
sry
