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kap26 [50]
3 years ago
8

Calculating Weighted Average Cost of Capital and Economic Value Added (EVA)

Business
1 answer:
kirill115 [55]3 years ago
8 0

Answer:

Mortgage bonds after-tax cost:

= Interest rate * (1 - tax rate)

= 4% * ( 1 - 30%)

= 4% * 70%

= 2.8%

Unsecured bonds after-tax cost:

= 6% * (1 - 30%)

= 6% * 70%

= 4.2%

Common stock:

= Long term treasury rate + risk premium

= 4% + 8%

= 12%

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Which of the following reflect the balances of prepayment accounts prior to adjustment?
egoroff_w [7]

Answer:

The answer is Balance sheet accounts are overstated and income statement accounts are understated.

Explanation:

6 0
3 years ago
B Company switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in
valina [46]

Answer:

 B's  depreciation is $ 9120

Explanation:

Given data:

Year  Depreciation base remaining   Life      Depr. fraction   Depr. Exp

2009  68400 ( 72000 - 3600)          5 yr       5/15             (5/15*68400) =           22,800

2010     68400                                     4 yr       4/15              (4/15 *68400) =18,240

where 15 is sum of (5+4+3+2+1)

Total depreciation at the end of 2010 is (22800 + 18240 = 41040)

New overhead value is (68400 - 41040 = 27360)

B's  depreciation is 27360/3 = $ 9120

7 0
4 years ago
President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when
Mnenie [13.5K]

Answer:

The correct answer is option b.

Explanation:

President Bigego is claiming that more people are working after he too office.  

Senator Pandor claims that the unemployment rate has increased after Bigego took office.  

Both of them can be right. Unemployment and the number of people working both can increase at the same time. If the labor force increased overtime, the number of people working can increase.  

Though if the growth of employment is slower than the growth of the labor force, then unemployment will increase as well. This is because with the increase in labor force number of workers will increase but slower employment growth will create fewer jobs. So, unemployment will increase.

3 0
3 years ago
Suppose that in 2018, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes we
matrenka [14]

Answer:

Option (B) is correct.

Explanation:

Given that,

National income = $200 billion

Depreciation = $15 billion

Personal taxes = $20 billion

Transfer payments = $10 billion

Gross domestic product in 2018:

= National income + Depreciation

= $200 billion + $15 billion

= $215 billion

Therefore, the Gross domestic product of United States in 2018 is $215 billion.

7 0
3 years ago
Penelope, a sales representative for ADT Security Services, is meeting with Oliver and Gina Kim to discuss installing a security
romanna [79]

Answer:

Personal Selling

Explanation:

The marketing tool illustrated in the question is personal selling. Personal selling is a marketing strategy that involves a sales rep meeting with a potential client for business purpose.

It makes use of 7 approaches as listed: Prospecting ,pre-approach, approach,presentation , meeting and overcoming objection , closing the sale and follow up,

In the question , we can see that Penelope fulfilled some of the approaches in the course of her meeting with the Kims.

7 0
3 years ago
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