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Grace [21]
3 years ago
15

The definition of inventory includes which of the following items? (Select all that apply.) a) items used currently in the produ

ction of goods to be sold items b) held for resale items currently in production for future c) sale items held for use or disposal
Business
1 answer:
Yanka [14]3 years ago
3 0

Answer:

Items a) and b)

a) items used currently in the production of goods to be sold items

b) held for resale items currently in production for future

Explanation:

Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.

In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.

Further, statement b includes work in production or final goods which are currently in production but would be resold.

The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.

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Answer:

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In order to calculate the WACC before bond issuance , we would have to calculate first the cost of equity  using capital asset pricing model .

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= 3.9% . WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.

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WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)

= (3.9% x 0.9) + (2% x 0.1)

= 3.51% + 0.2%

= 3.71%

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3 years ago
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Answer:

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