Answer:
a. Levered beta = unlevered beta * ( 1 + (1-tax rate)*D/E ) = 1.2 * (1 + ( 1 - 0) * (40/60) ) = 2.0
Answer: See explanation
Explanation:
The year-end adjusting entry to record the cost side of sales returns and allowances will be:
Dr Inventory Return estimated $3200
Cr Cost of goods sold $3200
(To record expected coat of returns)
Note that the above calculation was done as:
= $64,000 × 5%
= $64,000 × 0.05
= $3200
The opportunity costs of building this bridge could be from people coming into the town and making purchases within the town. Benefits for the citizens would be less traffic and being able to get around faster. Other factors would be the cost of taxes and how they would probably go up in order to pay off $25 million.
Answer:
weight of preferred stock = 12.49%
Explanation:
equity value = 21000 * 29 = $609000
preferred stock value = 2000 * 71 = $142000
debt value = $386000
total value =equity value + preferred stock value + debt value
total value = 609000 +142000 +386000 = $1137000
weight of preferred stock
= 0.1249
= 12.49%
Answer:
True
Explanation:
Gross wage is the pay before adjusting for taxes and other deductions. The term gross means before deductions. For example, when calculating profits, gross profits means the earnings before deducting expenses.
Net wages contrast gross wages. While gross wages do not include deductions, net wages is the income after adjusting for all deductions. Calculating the gross wage will include involves adding basic pay and other earnings such as commissions, allowances, and bonuses.
