Debit Advertising expense $400, credit accounts payable 400.
Answer:
The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;
Total amount = Debt + Preferred stock + common equity
= 100 million + 20 million + ( 50 * 6 million)
= $420 million
<u>Proportions.</u>
Debt
= 100/420
= 24%
Preferred Stock<u> </u>
= 20/420
= 5%
Common Equity
= 300/420
= 71%
Insurance companies negotiate discounts with hospitals under a PPO. Option A
This is further explained below.
<h3>What are Insurance companies?</h3>
Generally, A corporation, which may be for-profit, not-for-profit, or government-owned, offers the promise to pay for particular expenditures in return for a recurring charge, which is referred to as a premium. For instance, if a person acquires health insurance, the insurance company will pay for (at least part of) the client's medical expenditures, if the client has any medical bills.
In conclusion, Within the context of a PPO, insurance companies negotiate savings with hospitals. Alternative
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Answer:
1.37
Explanation:
Given that
Operating income = $45,900
Variable expenses = 10%
Fixed expenses = $17,100
The calculation of operating income is shown below:-
Contribution margin = Operating income + Fixed expenses
= $45,900 + $17,100
= $63,000
So, Operating leverage = Contribution margin ÷ Operating income
= $63,000 ÷ $45,900
= 1.37
