1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
astra-53 [7]
3 years ago
6

Home Bepot Inc. has a cost of equity of 11.3 percent. The company has an aftertax cost of debt of 4.9 percent, and the tax rate

is 40 percent. If the company's debt–equity ratio is .73, what is the weighted average cost of capital?
Business
1 answer:
ivolga24 [154]3 years ago
7 0

Answer: 8.60%

Explanation:

Weighted Average cost of capital = (Cost of equity * Weight of equity) + (After tax cost of debt * Weight of debt)

Weight of debt = Debt-equity ratio / (1 + Debt-equity ratio)

= 73% / (1 + 73%)

= 42.1965%

Weight of Equity = 1 / (1 + Debt - equity ratio)

= 1 / 1.73

= 57.8035%

WACC = (11.3% * 57.8035%) + (4.9% * 42.1965%)

= 8.60%

You might be interested in
Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for th
FrozenT [24]

Answer:

Date                    Explanation             Debit       Credit

January 1            Petty Cash               $200

                           Cash                                          $200

Explanation:

Step 1: Journal Entries to Establish the Fund on January 1

Date                    Explanation             Debit       Credit

January 1            Petty Cash               $200

                           Cash                                          $200

Being the establishment of petty cash fund

Step 2: Preparing Journal Entries to reimburse funds on January 8

Date                    Explanation             Debit       Credit

January 8            Postage                   $74

                            Transportation        $29

                            Delivery                   $16

                            Miscellaneous         $43

                           Cash                                          $162

Being the reimbursement of Petty Cash Fund.

Petty Cash is usually a fund established by an organisation to take care of day to day expenses. At the end of a period or at the exhaustion of the fund, an account is given and then the amount spent is reimbursed.

7 0
3 years ago
A company's direction, objectives, and strategy Group of answer choices are set in stone as the end of the planning process. nev
STALIN [3.7K]

Answer:

are never final, as managing strategy is an on-going, dynamic process.

Explanation:

In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;

I. Value.

II. Vision.

III. Mission.

Hence, a company's direction, objectives, and strategy are never final because managing strategy is a continuum or an on-going, dynamic process. Thus, it's never a now and then task.

6 0
3 years ago
Utopia Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 3% of net cred
photoshop1234 [79]

Answer:

The answer is C.

Explanation:

Credit sales is $6,000

Bad debt is 3% of net credit sales which is $180($6,000 x3%)

Creating allowance for doubtful debt entry is one of the prudent method and it tells us that some customers won't pay part of what they are owing. And it is also a contra account that offset bad debt.

According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.

So we have have:

Dr Bad debt expense $180

Cr Allowance for Doubtful Accounts $180

6 0
3 years ago
After conducting research, you will need to generate ideas and organize the collected data. Simple organizational techniques wil
ZanzabumX [31]

Answer:

The three major components in the preceding scratch list are High-End Linens, Affordability and Food & Drinks.

i. High-End Linens

List that falls under it includes 600-thread-count sheets, Double-thick bath towels, Silk pillowcases, Raw silk curtains with gold embellishments

ii. Affordability

List that falls under it includes $100/night four-star rooms, Free snacks, shampoo, and conditioner , Free wireless Internet

iii. Food and drink

List that falls under it includes Coffee maker with selected teas, Imported beer , Fresh-squeezed juices

4 0
3 years ago
Which of the following statements concerning internal controls is true? Multiple Choice Strong internal controls cannot be circu
GrogVix [38]

The True statement about internal controls is <em>B.  A system of internal controls is designed to prevent or detect errors and fraud.</em>

  • Internal Controls are the techniques that an entity institutes to ensure the integrity of financial and accounting information, promote accountability of its employees, and prevent fraudulent activities.

  • Strong internal controls can still be circumvented.  Internal controls are not limited to company policies and procedures against fraud. The employment of a husband and wife or close relations in the same company is not prohibited by control procedures or separation of duties.

Thus, the true statement about internal controls is B.

Read more: brainly.com/question/17056417

3 0
2 years ago
Other questions:
  • The capitalized cost of land excludes:
    7·1 answer
  • In a "Dutch auction" for new stock, individual investors place bids for shares directly. Each potential bidder indicates the pri
    13·1 answer
  • Match each of the following characteristics or scenarios with either the term negative externality or the term positive external
    13·1 answer
  • Beacon Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2017 annual re
    9·1 answer
  • What is litagation mediation and arbitration
    11·2 answers
  • Departmental contribution to overhead is calculated as revenues of the department less:
    13·1 answer
  • Draw a Laffer curve. Label it. Draw a point on the curve at the tax rate that generates the maximum tax revenue. Label it ​T*. D
    7·1 answer
  • Vegas Company is considering eliminating an unprofitable segment. The segment’s fixed costs are avoidable and are less than its
    8·2 answers
  • Why is it important to know to know how much is in your checking account ?
    15·1 answer
  • A skill you will use in your writing, way of thinking, evaluating conversations, and in daily encounters with others is?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!