The extent to which a market allows assets to be bought and sold at stable prices.
Answer: <em>$1,160,000</em>
Explanation:
Given:
Retained earnings (beginning) = $1 million
Dividend paid = $100,000
Net income = $250,000
Goodwill increased by = $10,000
Therefore, we'll compute Retained earnings (end of the year) as:
Retained earnings (end of the year) = Retained earnings (beginning) + Net income + Increase in Goodwill - Dividend paid
Retained earnings (end of the year) = $1,000,000 + $250,000 + $10,000 - $100,000
Retained earnings (end of the year) = $1,160,000
Answer:
The correct answer is letter "B": Program.
Explanation:
A program collects the sets of ideas, projects, and plans companies come up with to pursue and accomplish their objectives. Programs tend to be reviewed periodically to verify if the progress of the goals is made according to what is expected or if there are delays to be adjusted.
Answer:
a.Contingency
Explanation:
The Contingency theory of leadership is a theory that establishes that a leader is successful when the style used fits the situation. This theory states that the best leadership style is the one that best adapts to the context. So, the Gore company more than likely adheres to the contingency theory of leadership because their leaders are not chosen but emerge according to the project they are working on and by other employees.
Answer and Explanation:
The computation is shown below:
1, The cost of debt before tax is
Given that
NPER = 10%
PMT - $1,000 × 7% = $70
PV = $886
FV = $1,000
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the before tax cost of debt is 8.76%
2. The after tax cost of debt is
= 8.76% × (1 - 0.30)
= 6.13%
3. The total equity is
= $20 per share × 2million shares
= $40 million
4. The cost of equity is
= Risk free rate of return + Beta × (Market rate of return - risk free rate)
= 4% + 1.2 × (9% - 4%)
= 10%
5. The weight of debt is
= ($886 × 20 ÷ $1,000 ) ÷ (886 × 20 ÷ $1,000 + $40)
= 30.70%
6. The WACC is
= Weight of debt × after tax cost of debt + weight of equity × cost of equity
= 30.70% × 6.13% + (1 - 0.3070) × 10%
= 8.81%
