Answer:
d.9.34%
Explanation:
The formula for the weighted average cost of capital is provided below as a starting point for solving this question:
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
weight of equity=1-debt %=1-50%=50%
weight of debt=50%
cost of equity=13.6%
after-tax cost of debt=7.8%*(1-35%)
after-tax cost of debt=5.07%
WACC=(50%*13.6%)+(50%*5.07%)
WACC=9.34%
The discount rate is computed based on the target or preferred capital structure
Answer:
a. True
Explanation:
Since small business has lesser processes and paper work as compare to the larger organizations where formal procedures are in placed
Did you get the answer I have the same question..
Answer:
Loss of $4,000 in overall net income
Explanation:
Contribution margin is the net of the sale price and variable cost. Contribution margin ratio is the ratio of contribution to sales.
According to given data
Sales = $60,000
Contribution Margin = $60,000 x 35% = $21,000
Net Income = Contribution margin - Fixed costs = $21,000 - $25,000 = -$4,000
Advertisement Expense is a fixed cost.
There will be a loss of $4,000 added to overall net income.