Answer:
The WACC is 11.64%
Explanation:
The weighted average cost of capital or WACC is the cost to firm of raising its total capital based on its capital structure. The capital structure of the firm can contain debt, preferred stock and common stock. The WACC take the weight of each component as a proportion of total value of assets and multiply it by the rate of return or cost of each component.
WACC = wD * rD * (1-tax rate) + wE *rE
Where,
- wD and wE represent the weights of debt and equity as a proportion of total assets
- rD and rE are the cost of debt and cost of equity
- We multiply rD by (-tax rate) because we take after tax cost of debt for WACC calculation
Weight of debt = 2000000 / (2000000 + 3000000) = 2/5 or 0.4
Weight of equity is = 1 - 0.4 = 0.6
WACC = 0.4 * 0.06 * (1-0.4) + 0.6 * 0.17
WACC = 0.1164 or 11.64%
Answer:
July 1, 2020
Dr. Account Receivable $56,000
Cr. Sales $56,000
July 9, 2020
Dr. Cash $54,880
Dr. Sales Discount $1,120
Cr. Account Receivable $56,000
Explanation:
Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As Payment of $56,000 is received within the discount period. So, the discount will be
Discount = $56,000 x 2% = $1,120
Amount Paid = $56,000 - $1,120 = $54,880
The entry that would go to Operating Activities in a Cash Flow Statement is <u>c.cash payments </u><u>for </u><u>salaries.</u>
<h3>What are Operating Activities?</h3>
- These refer to cash transactions related to the day to day running of the business.
- Include current liabilities, expenses, and revenue from sales.
Salaries are expenses which means that they are considered operating activities and so will go in the Operating Activities section of the Cash Flow statement.
In conclusion, option C is correct.
Find out more on operating activities at brainly.com/question/15968195.
Answer:
d) $1, 316
Explanation:
Particulars Amount
Maximum Credit $5,572
Phase out limit $4,256 <em>(38,400 - 18,190)*21.06%</em>
Earned Income Credit Entitled to = Maximum Credit - Phase out limit
Earned Income Credit Entitled to = $5,572 - $4,256
Earned Income Credit Entitled to = $1,316
A because your don’t want to call anyone that is not available at that time