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777dan777 [17]
2 years ago
7

Match each of the following terms with their definition - Before-tax cost of debt - Cost of preferred stock - Cost of Common Sto

ck - WACC A. The interest rate the firm must pay on new long-term borrowing B. the rate of return on retained earnings, and adjusted for flotation costs C. rate of return investors require based on the preferred stock dividend D. the average cost of raising new financing
Business
1 answer:
fomenos2 years ago
3 0

Answer:

Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.

This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.

Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.

The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.

Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .

Commons stock costs is the required return on the retained earnings of a company.

WACC ⇒  D. the average cost of raising new financing.

Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.

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As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reaso
igomit [66]

Answer: See explanation

Explanation:

Based on the information given, we are informed that the co-worker has recorded a cash receipt twice and wants the full time bookkeeper to record a correcting entry that will reverse the mistakes.

Before making a decision about the correcting entry, it is necessary to check the entry and cross check the balances for sales and cash. One has to also check the receipts and every other necessary details in order to make sure that the transaction is genuine and not fraudulent.

After the through check, if the person is sure and confident that everything is okay, then the correcting entry can be made.

3 0
2 years ago
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery fo
spayn [35]

Answer:

The balance in the accumulated depreciation account at the end of the second year is $146,000.

Explanation:

Straight line method charges a <u>fixed depreciation charge</u> on the asset during its period of use.

Depreciation Expense (Straight line) = Cost - Residual Amount ÷ Estimated Useful life

                                                             = $778,000 - $48,000 ÷ 10

                                                             = $73,000

Therefore, for each year, a depreciation expense of $73,000 is charged to profit an loss.

Accumulated Depreciation Calculation :

Depreciation Expense : Year 1     $73,000

Depreciation Expense : Year 2    $73,000

Total Expense                              $146,000

5 0
2 years ago
Oliver has $5000 in a savings account, has $8000 invested in the stock
icang [17]

Answer:$8400

Explanation:

Just took the test

5 0
3 years ago
Which of the following statements is false concerning the use of ABC in service industries?
ELEN [110]

Answer:

b. When using ABC for service industries, special methods must be used to identify cost pools and cost drivers due to the unique nature of the services offered.

Explanation:

The cost pool method are the same we should look for activities which add value to the product to provide a more accurate product costing.

In cases of services the company will also determinate activities considering this premise therefore, there is no especial nature to offer to the client.

6 0
3 years ago
Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order
AleksandrR [38]

Answer:

1. Throughput Time = 9.2 days

2. Manufacturing Cycle Efficiency = 29%

3. 71% throughput time was spent in non value added activities.

4. Delivery Cycle Time = 25.8 days

5. New MCE = 57%

Explanation:

Given

Inspection time 0.7 days

Wait time 16.6 days

Process time 2.7 days

Move time 1.3 days

Queue time 4.5 days

1. The throughput time is calculated by adding all time except the wait time.

I.e.

Throughput time = Inspection time + Process time + Move time + Queue time

Throughput Time = 0.7 days + 2.7 days + 1.3 days + 4.5 days

Throughput Time = 9.2 days

2. Calculating the manufacturing cycle efficiency.

Manufacturing Cycle Efficiency is calculated by dividing value added time by throughput time.

Where the value added time = the process time = 2.7 days

And throughput time = 9.2 days (calculated in (a) above)

Manufacturing Cycle Efficiency = 2.7 days ÷ 9.2 days

Manufacturing Cycle Efficiency = 0.2934782609

Manufacturing Cycle Efficiency = 29.34782609%

Manufacturing Cycle Efficiency = 29%

3. Calculating the percentage of the throughput time was spent in non–value-added activities.

This is calculated by subtracting MCE calculated above from 100%

% throughput time = 100% - 29%

% throughput time = 71%

So, if 29% throughput time was spent in value added activities, 71% throughput time was spent in non value added activities.

4. Calculating the delivery cycle time.

This is calculated by adding the wait time to throughput time.

i.e.

Delivery Cycle Time = Wait Time + Throughput Time

Where Wait Time = 16.6 days and Throughput Time = 9.2 days

Delivery Cycle Time = 16.6 days + 9.2 days

Delivery Cycle Time = 25.8 days

5. Calculating new MCE.

Here, we'll used the same formula used in (2) above

i.e

Manufacturing Cycle Efficiency is calculated by dividing value added time by throughput time.

Where the value added time = the process time = 2.7 days

But throughput time will be calculated as

Throughput time = Inspection time + Process time + Move time (because of the elimination of all queue time)

Throughput Time = 0.7 days + 2.7 days + 1.3 days

Throughput Time = 4.7 days

So, New MCE = 2.7 days ÷ 4.7 days

New MCE = 0.5744680851

New MCE = 57.44680861%

New MCE = 57%

6 0
3 years ago
Read 2 more answers
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