Answer and Explanation:
a. The computation of the wacc is as followS;
= cost of common stock × weight of common stock + cost of debt × weight of debt × (1 - tax rate)
= 0.16 × 0.70 + 0.08 × 0.30 × (1 - 0.30)
= 0.112 + 0.0168
= 0.1288
= 12.88%
b. The after tax cost of debt is
= 0.08 × (1- 0.30)
= 0.056
So the capital should use the cost of debt
Answer:
58,500
Explanation:
Given the information above, the formula for Inventory loss is
Inventory loss = Opening inventory + Purchases - Cost of sales
Where,
Cost of sales = $432,000 × 100 ÷ 160
=$270,000
Since opening inventory = $153,000
Purchases = $175,500
Therefore,
Inventory loss = $153,000 + $175,500 - $270,000
= $58,500
<span>Rusty is a project manager who has 15 employees reporting directly to him. those 15 employees are rusty's </span>unity of command
Answer: Decreased assets and liabilities.
Explanation:
Both assets and Liabilities decrease as a result of the April transaction because first, Cash is used to pay the Dividend which reduces the cash account and Cash is an Asset.
Liabilities also decrease because when the dividends were declared in February, Despot Inc had to create a liability in their books to cater for the payment of the dividends. Now that the dividends have been paid, that figure will be removed therefore reducing Liabilities.
Answer:
Total direct material variance= $1,000 favorable
Explanation:
Giving the following information:
Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.
<u>To calculate the total direct material variance, we need to use the following formula:</u>
<u></u>
Total direct material variance= price variance +/- quantity variance
Total direct material variance= 3,000 - 2,000
Total direct material variance= $1,000 favorable
