Answer:
<em>WACC 10.995</em>
Explanation:
We solve using the Weighted average cost of capital assuming a tax rate of 0% as we have to ignore taxes. Hence, we get:
Ke 0.14700
Equity weight 0.43
Kd 0.082
Debt Weight 0.57
t 0
WACC 10.99500%
In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of
its $1 par common stock at $32 per share. Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
1. On January 2, 2018, Borland reacquired 10 million shares at $30.50 per share.
2. On March 3, 2018, Borland reacquired 10 million shares at $34 per share.
3. On August 13, 2018, Borland sold 1 million shares at $40 per share.
4. On December 15, 2018, Borland sold 2 million shares at $34 per share.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
1. On January 2, 2018, Borland reacquired 10 million shares at $30.50 per share.
2. On March 3, 2018, Borland reacquired 10 million shares at $34 per share.
3. On August 13, 2018, Borland sold 1 million shares at $40 per share.
4. On December 15, 2018, Borland sold 2 million shares at $34 per share.
1 answer:
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