Answer:
The correct answer is A) be subtracted from net income
Explanation:
The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.
It depends on the account if it is added or subtracted to net income.
A gain from the sale of equipment is subtracted from net income
In the Weighted Average Cost of Capital (WACC) equation, the symbol <u>"Ke" </u>represents the costs of raising capital by issuing new stock.
The full WACC formula is below:
WACC Formula = (E/V * Ke) + (D/V) * Kd * (1 – Tax rate)
Businesses/producers make the goods and services that exist in the economy. Producers create goods or services that are available for consumers to purchase so that they are making a profit. Consumers need to be interested in the goods or services available so that the companies stay in business and help drive the economy.
