Answer: the government giving tax breaks to companies locating in poor geographic areas.
Explanation:
Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
The government will be able to improve the road system, encouraging more people to drive on vacations. Social Security benefits will provide income for the elderly and disabled, allowing them to spend money, thus boosting the economy. Airline security might be slightly improved because of the ability to hire, but there will not be enough money to provide the latest equipment.
Answer:
cash 750 debit
note receivable 510 credit
NSF check 240 credit
-- to record increases of cash from reconciliation --
bank fees expense 44 debit
cash 44 credit
-- to record decreases of cash from reconciliation --
Explanation:
cash account 5,600
bank fees (44)
NSF 240
bank collected 510
adjusted cash: 6,306
We adjust based on the unknow information for the company like fees, collection and NFS found. we could also adjust for mistake but for this time, there isn't any.
