Answer:
$4,332.89
Explanation:
The adjusted reconciled checkbook balance will include:
checkbook balance $2,210.55
+ bank collect note $2,000.00
- fee for collecting the note ($5.00)
+ earned interest $42.33
+ difference in recording a check $400 - $300 = $100
<u> - banking service charge ($14.99) </u>
total = $4,332.89
Answer:
0.73
Explanation:
Given that
WACC = 11%
Tax rate = 34%
Cost of equity = 14.9 %
Cost of debt = 8.6%
Recall that
WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)
We are to find
Cost of debt and cost of equity
Let
Cost of debt be x
Cost of equity be (1 - x)
Thus,
0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)
x = 0.4228
Therefore,
Debt-equity ratio
= Cost of debt/cost of equity
= 0.4228/(1 - 0.4228)
= 0.73
Answer:
$669,950
Explanation:
Computation of taxable income
Bali’s net book income before tax$605,800 Excess of book over tax depreciation25,600
Book gain on equipment sale$(23,000)
(53,000-27,400)
Tax gain on equipment sale38,000 15,000
(23,000-38,000=15,000)
Nondeductible loss on sale to related party 23,550
(75,000-51,450)
Taxable income$669,950
(605,800+25,600+15,000+23,550)
Therefore the taxable income will be $669,950
Answer:
Real Exchange Rate computed as German goods per U.S. goods: 2
Explanation:
Cost in the US: 0.50 dollar
Cost in Germany: 1 euro
Real Exchange Rate: German Goods / U.S. Goods
Real Exchange Rate: 1 / 0.50 = 2
The real exchange rate measures the price of foreign goods relative to the price of domestic goods.
