Answer:
<em>WACC 10.07765%</em>
Explanation:
We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020
This is solved using excel or a financial calculator
C 32.50
time 34
<em>rate 0.03153274</em>
PV $672.0015
Maturity 1,000.00
time 34.00
<em> rate 0.03153274</em>
PV 348.00
PV c $672.0015
PV m $347.9985
Total $1,020.0000
<u>annual cost of debt:</u>
0.031532 x 2 = 0.063064 = 6.31%
<u>debt outstanding:</u>
5,000 bonds x $ 1,000 x 102/100 = 5,100,000
<u>equity</u>:
105,000 shares x $59 each = 6,195,000
For the equity we solve using CAMP
risk free = 0.05
market rate = 0.09
premium market = (market rate - risk free) 0.085
beta(non diversifiable risk) = 1.17
<u>Ke 0.14945</u>
Now we solve for the WACC
D 5,100,000
E 6,195,000
V 11,295,000
Equity weight 0.5485
Debt Weight 0.4515
Ke 0.14945
Kd 0.0631
t 0.34
<em>WACC 10.07765%</em>
Answer:
B) I and III
Explanation:
Generally Accepted Audit Standards are used for auditing private companies. They provide systematic guidelines to auditors when conducting audits on companies' financial statements. They check for the auditor's verifiability of the company's compliance to the Generally Accepted Accounting Principles (GAAP) as well as their accuracy and consistency of their records. Therefore, choices I and III are correct.
It is different because people actually have the option of correcting the information or putting false things too.
Well because a retrospective or ex post facto study offers a higher level of control than a correctional study!!
Answer:
The correct answer is $55.42.
Explanation:
According to the scenario, the computation of the given data are as follows:
Boxes use = 96 boxes
Cost = $4 per box
Staple cost = $20
Carrying cost = $0.80
So, we can calculate the annual cost of ordering and carrying by using following formula:
Annual cost = (EOQ ÷ 2) × Carrying cost + (Boxes use ÷ EOQ) × Staple cost
Where, EOQ = ( 2 × 96 × 20 ÷ 0.80)^1/2 = 69.28
So, by putting the value, we get
Annual cost = ( 69.28 ÷ 2) × $0.80 + ( 96 ÷ 69.28) × $20
= $27.71 + $27.71
= $55.42