Answer:
8.45%
Explanation:
The formula used to calculate WACC is:
WACC = {[total equity/(total debt + equity)] x cost of equity} + {[total debt/(total debt + equity)] x cost of debt x (1 - tax rate)}
first we have to calculate the cost of equity:
cost of equity = risk free rate + (beta x market risk premium) = 4% + (1.2 x 7.5%) = 4% + 9% = 13%
now, WACC:
WACC = {[880/(880+880)] x 13%} + {[880/(880+880)] x 6% x (1 - 35%)} = (0.5 x 13%) + (0.5 x 6% x 0.65) = 6.5% + 1.95% = 8.45%
WACC = weighted average cost of capital is the rate at which the company effectively finances its assets
Trial balance is used to see the accurate of the balancing of ledgers. if there is an error in the trial balance a temporary account known as the suspense account can be opened
Answer:
C. 280,000 270,000
Explanation:
Units Started and Completed: Total Units in Process during April - Work in Process Units at April 30
Equivalent Units of Production (Weighted Average Method): Units Started and Completed + Ending Inventory x % Completion
Units Started and Completed: 280,000 units - 25,000 units = 255,000
Equivalent Units of Production Materials: 255,000 + 25,000 x 100% = 280,000
Equivalent Units of Production Conversion Costs: 255,000 + 25,000 x 60% = 270,000
Complete Question:
The principle of exceptions allows managers to focus on correcting variances between
Group of answer choices
a. standard costs and actual costs
b. competitor's costs and standard costs
c. variable costs and actual costs
d. competitor's costs and actual costs
Answer:
a. standard costs and actual costs
Explanation:
A principle of exception can be defined as a theory that states that, only relevant and significant deviation about an asset is brought to the knowledge of a manager for the decision-making process or consideration.
The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.
The borrower may chose to use the funds to invest in a business venture and thus be becomes an investor. Money is channeled through financial institutions such as banks. A saver saving with a bank account seeks to keep the money in the bank as it earns him interest.
