Answer:
10,000
Explanation:
20,000 doubled is 40,000. If 20,000 is 5,000, then 40,000 is 10,000
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $2,000
To Accounts receivable-Hopkins $2,000
(Being write off is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done
Answer:
No doubt the question is pointing at the term described,which is operating strategies concern
Explanation:
Operating strategies concern involves action plans developed at the operation strategic level to align business resources and capabilities to the long-term goals of the business.
Majority of the action plans initiated at the operational side of the business are short-term in nature,hence operational strategies concern aimed at bridging the gap between the long-term goals of top management and the short-term objectives of junior managers by developing long-term plans for operations.
Top management use certain performance measures to gauge the progress made in operating strategies concern.
A company issues stock to raise money
