Answer:
balance in bills receivables account = $364000
Explanation:
given data
write off = $32000
balance in accounts receivable = $400000
balance in allowance account = $36000
to find out
net realizable value of accounts receivable
solution
we first find credit balance in allowance that is
credit balance in allowance = $36000 - $32000
credit balance in allowance = $4000
and
so here balance in bills receivables account is
balance in bills receivables account = ( $400000 - $32000 ) - ( $36000 - $32000 )
balance in bills receivables account = $368000 - $4000
balance in bills receivables account = $364000
Answer:
$85 per share and $35 per share
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the par of shares by using following formula:-
Corporation’s Preferred Stock‘s Par Value is
= Preferred Equity ÷ No. of Preferred Outstanding Shares
= $85,000 ÷ 1,000
= $85 per share
Corporation’s Common Stock‘s Par Value is
= Common Equity ÷ No. of Common Outstanding Shares
= $140,000 ÷ 4,000
= $35 per share
Since there is no debt, all the capital that the company raises is in the form of common equity.
Since there is only equity (meaning the firm is a fully equity firm), the weighted average cost of capital (WACC) is nothing but the cost of equity
In this case the WACC represents the cost of equity
Therefore, cost of equity = WACC = 8%
Ken, the agent, violated the law of agency
In this particular instance, when Ken told the the buyer that the seller would take a lower price than what was on the listing in order to close the sale faster and then told the buyer exactly which price they should offer, Ken, who is the agent, has now violated the law of agency
Answer:
7.38%
Explanation:
Calculation to determine what would be AJC's new WACC and total value
Using this formula
WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)
Let plug in the formula
WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)
WACC and total value=0.057+0.0168
WACC and total value=0.0738*100
WACC and total value=7.38%
Therefore would be AJC's new WACC and total value is 7.38%