Answer:
a. cost of debt
Explanation:
The formula to compute the weighted average cost of capital is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
Since the payment for the dividend is not entitled to a tax deduction but the payment for interest is entitled to a tax deduction. And, the after-tax is considered for the cost of debt and the same is shown in the formula above
Answer:
$4,000
Explanation:
Intangible assets are usually amortized using the straight line depreciation method.
Depreciation expense = ( Cost - Salvage value) / number of years
= ($50,000 - $10,000)/ 10 = $4000
I hope my answer helps you.
Answer:
The statement is: False.
Explanation:
Many economists believe the foreign exchange market is efficient enough to set forward rates -rates applicable in the future, thus, it is non-sense to spend money on trying to forecast exchange rate changes in the short run. This is because different studies have shown that most forward rates predictions have been more accurate than publicly available information.
Efficiency is understood as the characteristic of a market to display all available public information in the assets price, according to the Efficient Market Hypothesis (EMH).
Answer:
Cash account for $10,100
Explanation:
The journal entry is shown below:
Cash Dr $10,100
To Note receivable $10,000
To Interest revenue $100
(Being the receipt of the payment is recorded)
The computation of the interest revenue is
= $10,000 × 6% × 60 days ÷ 360 days
= $100
For recording this entry we debited the cash account and credited the note receivable and the interest revenue account
We assume the 360 days in a year
Answer:
B) Normal conditions are rarely encountered."
Explanation:
The most likely response from his neighbor was probably, "good luck with all that, i remember reading somewhere that Normal conditions are rarely encountered." This would be the most likely response because his neighbor is described as being jealous and skeptical. Therefore his response will most likely have a tone of hope that something happens so that the installation can't happen, such as bad weather.