Answer:
Explanation:
b. thinking at the margin
i think because is is asking for what decision it is
hope this helps some
Answer:
WACC = 12.45%
Explanation:
WACC= cost of equity * weight + cost of pref. equity * weight + cost of debt * weight * (1 - T)
WACC = 0.6 * 16.8 + 0,03 * 11.4 + 0,37 * 8.3 * (1 - 0,34)
WACC is the weighted average of the costs of the company, so it is necessary to multiply the weight of each source of capital (equity, preferred equity and debt) for its corresponding cost. Debt has a partiuclarity and is that it is before taxes so it becomes a tax shield for the company and taxes in fact reduce the cost of debt, for that reason we also multiply the cost of debt by (1 - T)
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What do you mean do you have a better example..? But usually some jobs don’t ask
Answer:
Bad debt expense for 2016 should be: c. $8,520
Explanation:
As of December 31, 2016, Amy Jo's Appliances had accounts receivable of $313,000 and the allowance for uncollectible accounts should be 3% of accounts receivable
Bad debts are estimated: 3% x $313,000 = $9,390
Amy Jo's Appliances had $870 in the allowance for uncollectible accounts
Bad debts expense = $9,390 - $870 = $8,520
The entry will be made:
Debit Bad debts expense $8,520
Credit Allowance for uncollectible accounts $8,520
