Answer:
A. 8.15
Explanation:
WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.
In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:
WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)
E = Common equity
D = Debt
PE = Preferred equity
%E = Common equity / total capital
%D = Debt / total capital
%PE = Preferred equity / total capital
Tax = Tax rate
<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>
<u>Calculation:</u>
Using the above formula we can calculate WACC
WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)
WACC = 0.0815 or 8.15%
Answer:
False
Explanation:
The two sides are DEBIT and credit.
Answer:
B) Step aside and let the other person prevail
Explanation:
I took it on Edgenuity
Given that <span>the U.S. dollar exchange rate increased from $0.96 Canadian in June 2011 to $1.03 Canadian in June 2012, and it
decreased from 81 Japanese Yen in June 2011 to 78 Japanese Yen in June 2012.
Between June
2011 and June 2012, the U.S. dollar appreciated against
the Canadian dollar.
Between June 2011 and June 2012,
the U.S. dollar depreciated against the Japanese Yen.</span>
Answer:
D) 18.2 times
Explanation:
The accounts receivable turnover is determined by dividing the total credit revenues by the average receivables.
The average receivables is the sum of the opening and closing receivable balances divided by 2.
The average receivables is ( $ 1,189 + $ 955) / 2 = $ 1,072
The total revenues in the absence of other information is considered as credit sales.
Average receivables turnover = $ 19,548 / $ 1,072 = 18.24 times
