Answer:
The correct answer is letter "B": It formalizes the logistics agreed upon by the roommates in the case of a dispute.
Explanation:
Roommate relationships might not always be harmonious. In most cases, people have roommates with the only purpose of sharing rent expenses. Aside from that, they are unlikely to have another bond. Thus, some conflicts could arise as a result of dealing with strangers.
To avoid major inconveniences, a roommate agreement should be signed among the individuals sharing the apartment so in the document, they formally establish the responsibilities and limits they have by sharing the same department and, in front of problems, the document will make it easier to determine who could be at fault.
Answer:
a. Karen Meyer's personal records
c. American red cross
Explanation:
The $6,000 contribution should be recorded in Karen Meyer's personal records because 1) the donation was made on her personal name 2) a donation of such size is relevant when Karen files her taxes.
The contribution should also be recorded in the American red cross records because the organization needs to clarify to the tax authorities where each sum of money it obtains comes from.
Answer:
<u>Dingo should reject this project </u>
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Explanation:
sales - operating expenses = controllable margin
controllable margin/operating asset = return on assets
100,000 sales - 86,000 expenses = 14,000
14,000/200,000 = 0.07 = 7%
This project yield 7% which is lower than Ding required rate of return of 9%
Dingo should reject this project of finance it through a lower cost of capital.
Answer:
WACC = ke(E/V) + Kd(D/V)
WACC = 15(0.40) + 9(0.60)
WACC = 6 + 5.4
WACC = 11.4%
Explanation:
WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).
