Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
Answer:
Net operating cash flow= $9,300
Explanation:
Giving the following information:
Sales $22,000
Depreciation $8,000
Other operating costs $12,000
Tax rate 35%
We need to determine the net operating cash flow:
Sales= 22,000
Other operating costs= (12,000)
Depreciation= (8,000)
EBIT= 2,000
Tax= (2,000*0.35)= (700)
Depreciation= 8,000
Net operating cash flow= 9,300
Answer:
U.S. Builders
The problem with the discipline process that U.S. Builders has is:
Implementing the resolution of the disciplinary process.
Explanation:
The correct disciplinary process should follow the following steps:
1. Obtaining an initial understanding of the issue.
2. Carrying out a thorough investigation to establish the facts.
3. Inviting the affected employee to a disciplinary meeting.
4. Conducting the disciplinary meeting.
5. Deciding on the disciplinary action to take.
6. Confirming and conveying the outcome in writing.
7. Giving the employee the right to appeal.
Implementing the resolution.
Answer: Wages account debit
Wages payable account credit
Explanation:
Sdjusting entries are simply referred to as the journal entries that are made when the accounting period ends such that there is allocation of the income and the expenditure incurred by the economic agent to the period in which the income and the expenditure occurred.
In this case, the adjusting journal entry passed by the accountant will be to debit the wages account by $1500 and then credit the wages payable account by $1500.
Answer:
Chuck must be less than $260,000
Explanation:
The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.
