Answer:
10.5%
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)
(6% x 0.5) + (15% x 0.5) = 3% + 7.5% = 10.50%
I think that having permanent employees is better because they will have more experience and you will get to see the type of person they are.
The value of a firm will increase when the firm first uses leverage if we assume that there are no bankruptcy cost.
Companies that are unable to pay their debts may have very few options for the future. The legal process of releasing a business from debts and other obligations while providing creditors with a chance to be paid back may be one of those options. This process is known as bankruptcy. Bankruptcy can provide businesses with a fresh start even though it is a last resort.
When a business has significantly more debt than equity, bankruptcy frequently results. There are risks associated with debt, even though it may be a good way for a company to finance its operations.
The overall capital structure of a company may be weakened by bankruptcy expenses, which include legal costs.
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Answer is d. all of the above
The adjusting entry would be Debit rent expenses and credit prepaid rent by $1,037.
Adjusting journal entries are being used to report transactions that occurred but were not correctly documented using the accrual method of accounting.
There at end of an accounting period, the adjusting journal entries are filed in a company's general ledger to comply with the matching and revenue recognition standards.
The most common types of journal entry changes are accruals, deferrals, and estimates. It is used for accrual accounting reasons when one accounting period finishes and another begins..
That instance, rent expenditure for December must be acknowledged; the entry would be as follows.
DR Rent Expense =12444/12
= $1,037
CR prepaid rent $1,037
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