Answer:
Payment to suppliers was $ 17,100
Credit sales was $37,200
Explanation:
Please refer to the attached for working.
Answer:
Increase / Increase.
Explanation:
Increase purchases of the U.S securities by the Denmark investors will place an increase on both the demand for U.S. dollar and international value of U.S. dollar since the business is done with the U.S dollar.
Answer:
The WACC change if the new tax rate was adopted is - 0.35%
Explanation:
For computing the WACC change, first we have to determine the after tax cost of debt by applying the 40% and 45% tax rate which is shown below:
After tax Cost of debt = Cost of debt × ( 1- tax rate)
For 40% tax rate, it would be
= 7% × ( 1 - 40%)
= 4.2%
For 45% tax rate, it would be
= 7% × ( 1 - 45%)
= 3.85%
The change in WACC would be
= 3.85% - 4.2%
= - 0.35%
