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3 years ago

The payment of accounts payable would

1 answer:

3 0

Decrease assets, decrease liabilities. Accounts payable are what the business owes (liabilities). By paying off accounts payable, the liabilities are decreasing (they owe less) and the assets are also decreasing (because they use assets/cash to pay off the liabilities, so they have less now).

Hope that helps

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When a country experiences capital flight, its net capital outflow, a. which is part of the demand for loanable funds, increases

Dahasolnce [82]

Answer:

Explanation:

Capital flight will reduce the quantity of money supply that can be loaned to investors.

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3 years ago

You are given the following information for Cleen Power Co. Assume the company’s tax rate is 40 percent. Debt: 5,000 6.6 percent

Misha Larkins [42]

Answer:

WACC = 8.84%

Explanation:

Face value= $ 1000 (assume)

Current price = 1000* 109% = 1090

semianual interest =1000 *.066*6/12 = 33

semiannual months = 20 *2 = 40

Yield to maturity of bonds = [semiannual interest +(face value -current price) /months]/[(face value+price)/2]

= [33 + (1000- 1090 )/40 ]/[(1000 +1090)/2]

= [33 + (-90/40) ] / [2090 /2]

= [33 - 2.25 ] /1045

= 30.75 /1045

= .0294 or 2.94% semiannually or (2.94*2) =5.88 % annually

After tax cost of debt = 5.88 (1- .40 ) = 3.528 %

Market value of bond = 1090 *5000 = $ 5450000

b)cost of equity =Rf +[beta*market premium ]

= 4.6 + [1.12 * 5]

= 4.6 + 5.6

= 10.20 %

market value of equity = 380000*56 =$ 21280000

Total market value of debt and equity =5450000 +21280000

= $ 26730000

weight of debt = 5450000/26730000 = .2039

weight of equity = 21280000 /26730000 = .7961

WACC = (after tax cost of debt *WD)+(cost of equity *We)

= (3.528 * .2039 )+(10.20 * .7961)

= .7194 + 8.1202

= 8.84%

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3 years ago

The marketing challenge is more directly aligned to the debate between universal ethics and _____.

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The answer in the space provided is utilitarianism. It is because they are more focus on both of universal ethics and the utilitarianism in terms of building their product for the sake of their customers in order to meet the consumer’s needs.

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3 years ago

In responsibility accounting, unit managers are evaluated only on things that they can:________

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Answer: have control over

Explanation:

Responsibility accounting is a system of accounting whereby responsibility centers are identified and the performance reports of such responsibility centers are prepared and analysed.

Responsibility accounting has to.do with the internal accounting for the responsibility center that the company has and their budgeting.

In responsibility accounting, unit managers are evaluated only on things that they can control or have control over.

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