Answer:
The WACC is 12.24%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can be comprised of three components which are debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component in the capital structure
- r represents the cost of each component
- We take the after tax cost of debt. Thus we multiply the cost of debt by (1 - tax rate)
WACC = 0.3 * 0.10 * (1 - 0.4) + 0.03 * 0.13 + 0.67 * 0.15
WACC =0.1224 or 12.24%
Answer:
The Journal entry is as follows:
Depletion expense - Coal Deposit A/c Dr. $280,000
To Accumulated depletion -Coal Deposit $280,000
(To record the depletion expense for the current year)
Workings:
Depletion per ton = (cost - Salvage) ÷ Total units of production
= ($900,000 - $100,000) ÷ 200,000
= $4 per ton
Depletion expense = Tonnage tons mined current year × Depletion per ton
= 70,000 tons × $4
= $280,000
Answer: product diversification
Explanation:
Product diversification is when the original market for a product is being expanded. Product diversification is used to boost a brand and also increase sales.
From the question, we are informed that Amazon has decided to enter the college bookstore market and that the goal of "Amazon Campus" is to offer co-branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of product diversification.
Answer:
The price of goods needs to be increased.
Explanation:
Excess demand occurs when the quantity demanded is higher than the quantity supplied. This happens when the price of the good is lower than the equilibrium price. This can happen naturally in the market, or can happen if the government imposes a binding price floor.
The best way to solve excess demand is to raise the price, in order to reach equilibrium. Once in equilibrium, the price will coordinate the quantity supplied and the quantity demanded so that they're roughly equal.
Answer:
A) A test with a high cost may also be of high value.
Explanation:
A test's cost add up to the time spent in preparing that test. S much time might have really been spent on it like researching, sitting, time spent, revaluation of the test, as well as other contributions made for the execution of that test. The value of the test can be evaluated to the resources spent for the test. When a test has a high cost, it may also have a high value depending on some variables relating to both the cost of the test as well as its value. Also, every individual's primary objective is usually cost minimization and profit maximization in every thing he does irrespective of type or structure.
