Answer: See explanation
Explanation:
Debt = 0.65
Weight = 39.39%
Cost for debt = 2%
Product = 39.39% × 2%
= 0.3939 × 0.02
= 0.007878
Equity = 1.00
Weight = 60.61%
Cost for equity = 6%
Product = 60.61% × 6%
= 0.6061 × 0.06
= 0.036366
Weighted average floatation cost:
= 0.007878 + 0.036366
= 0.044244
= 4.42%
The true cost of the building will then be:
= Funds needed / (1 - Floatation cost)
= $43,000,000 / (1 - 0.044244)
= $43,000,000 / 0.955756
= $44,990,562
The following journal entry will be passed in the books of accounts and the interest expense is calculated to an amount of $9600
<u>Explanation:</u>
Given data:
amount of note: $200000, annual principal payments to be made each year at December 31st = $40000, interest amount to be charged = 6 percent, duration of note = 5 years
the following calculation is made in order to find out the amount of interest:
Amount of note minus principal payment multiply with rate of interest
now, putting the figures in formula:
interest = 200000 minus 40000 = $160000 multiply with .06 = $9600
Thus, the interest amount = $9600
The interest expense will be debited with an amount of $9600 in the books of accounts.
Answer:
protectionism
Explanation:
The country could overtax import products such as manufactured products in order to protect its own products and industries. This is very common in trade markets. Nowadays, through the globalization and China´s high development protectionism is ending.
The reason why the fund uses the budgetary accounts because
it is most likely needed that the funding budget to be approved legally by the
city council in order for the budget funds to be used by the members or people
responsible of handling the budgets.
