Customers who actively trade their listed stock portfolios should have a strong understanding of:_______

Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company

Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

$r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)$

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

$0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)$

$0.1384 - 0.125 = 0.34375 (.125-r_d)$

$0.0134 = 0.34375\times 0.125 - 0.34375\times r_d$

$r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375$

rd = 0.860181818 = 8.60%

6 0

3 years ago

3. Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $22,000 cash; (b)

Fofino [41]

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $22,000

Accumulated depreciation-machine Dr, $148,800

($201,600 - $23,040 ÷ 6 × 5)

Loss on Sale of Machine Dr, $30,800

To Machine $201,600 ($192,000 + $8,000 + $1,600)

(To record Sale of the machine)

2. Cash Dr, $88,000

Accumulated depreciation-machine $148,800

($201,600 - $23,040 ÷ 6 × 5)

To Gain on Sale of Machine $35,200

To Machine $201,600

(Being Sale of the machine is recorded)

3. Cash Dr, $32,500

Accumulated depreciation-machine Dr, $148,800

Loss on disposal of Machine $20,300

To Machine $201,600

(Being Sale of the machine is recorded)

7 0

3 years ago

Gardening supplies are hot now but they haven’t always been why is this true of other businesses too

marusya05 [52]

Answer:

look i don't care...

Explanation:

just joking i don't know that question

3 0

3 years ago

Explain how the political systems of countries differ. Explain how the economic systems of countries differ. Explain how the leg

KIM [24]

<h2>Every country operate in a different yet similar system of both political and social affairs.</h2>

Explanation:

Every country operate in a different yet similar system of both political and social affairs. In terms of political differences, some countries have parliamentary governments while some countries like the US have presidential governments.

Regardless of how each country operate politically, most of the operational system of these countries are embedded in democracy and the general welfare of its citizens. The differences occur because of these operational systems of each country. They could differ in policies, reforms or laws which are based on the interests of its people and the nation.

In economic terms, the differences occur when governments prioritize what economic policies or model they choose to implement. Economic systems of a country change according to the need of the times. For instance, China initially, after its independence, chose to remain a closed economy until it reformed its policies in 1978 to finally open up the country.

Legal systems of countries differ from one another as every country use a civil law system based on its cultural, social, political and historical circumstances. For instance, in US each state has the power to establish its own legal procedures while in some country, every state must follow a uniform civil code.

As we know the political economy refers to both the political and economic systems of a country, management practice of national differences is important to taken into account before securing economic relations with another country. Management practice of national differences helps in finding favorable economic and political systems around the world for a country to make both economic and political partnership with.

6 0

3 years ago

In a perfectly competitive market in short-run equilibrium, _______. A. the price and quantity bought and sold in the market a

Thepotemich [5.8K]

Answer:

D. Market supply and market demand determine the price and quantity bought and sold in the market.

Explanation:

In perfectly competitive market, equilibrium price and quantity is determined at the point where the aggregate supply curve and aggregate demand curve intersect.

If either supply or demand changes, the supply/demand curve will shift to intersect the demand/supply curve at a new equilibrium point.

In other words, although both suppliers and buyers are price-takers they both influence price and quantity bought and sold,<em> at the aggregate level</em>.

4 0

3 years ago

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Customers who actively trade their listed stock portfolios should have a strong understanding of:________.