The weighted average cost of capital is calculated as -
WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)
Weight of debt and equity is calculated as -
Debt =.6 and equity = 1 as debt-equity ratio is 0.6:1
Weight of debt = .6/1.6 = 37.5 %
Weight of equity = 62.5%
Cost of equity = 14.5 % and cost of debt = 4.8% (after tax)
WACC = (62.5% X 14.5%) + (37.5% X 4.8%)
WACC = 10.86 %
Answer:
The correct option is (A) Managerial Accounting
Explanation:
Managerial accounting is the accounting that identifies, measures, analyze the financial information in order to accomplish the company goals and objectives. Its decisions such as identification cost per unit, fixation of the sales price etc. These decisions should be taken by the internal users
Therefore as per the given scenario, The correct option is (A) Managerial Accounting
Answer:
B. $16,000.
Explanation:
The computation of the balance of Allowance for Uncollectible Accounts after adjustment is shown below:
= Account receivable × estimated percentage
= $400,000 × 4%
= $16,000
By multiplying the account receivable with the estimated percentage we can get the uncollectible amount
Hence, all other formation which is mentioned is not relevant. Hence, ignored it
Answer: Public Relations
Explanation: The elements of a promotional marketing mix are the resources an organisation engages in its marketing promotion. They are:
Advertising, public relations, sales promotion, direct marketing and personal selling.
The above listed elements have there unique effect on the sales if an organisation.
Advertising is used to create an awareness of the product to the consumer using all forms of advertising such as radio jingle television advert, billboards etc.
Public relations is used to find out the effect of the products in the market and also to get feedbacks from consumer which will enable mgt to plan on ways to correct any issue observed.
Sales promotions are ways of giving to the consumers fee products as rewards for loyalty
Direct marketing is the use of marketing officers that will speak to consumers personally and try convincing them to try the products
Personal selling is the act of selling the products one on one to customers
Answer:
34.6%
Explanation:
The formula to compute the company's profit margin is shown below:
Profit margin = (Net income) ÷ (sales revenue) × 100
= ($92,400) ÷ ($267,000) × 100
= 34.60%
It shows a relationship between the net sales or sales revenue and the net income which is earned by the company. All other items which are mentioned in the question are irrelevant. So, these are not considered in the computation part. Hence, ignored it