Answer: b. Give personal emails and phone calls to employees at any level in the organization and thank them for their hard work and service to the company
Explanation:
It is said that appreciation is the application for more, when people are thanked, they often tend to go the extra mile to do their best for the organization, this in turn will build the work force that will push unity and effectiveness both as a team and individually and would rub off in theor services to their customers. Encouraging the workers would go a long way to improve the services of the airline.
Answer:
a.
WACC = 0.07961 or 7.961% rounded off to 7.96%
b.
After tax cost of debt = 0.0474 or 4.74%
Explanation:
a.
The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common stock respectively
WACC = 0.15 * 0.06 * (1 - 0.21) + 0.1 * 0.05 + 0.75 * 0.09
WACC = 0.07961 or 7.961% rounded off to 7.96%
b.
The after tax cost of debt is calculated by multiplying the cost of debt by (1 - tax rate) to adjust for the tax advantage provided by debt as interest payments on debt are tax deductible.
After tax cost of debt = 0.06 * (1 - 0.21)
After tax cost of debt = 0.0474 or 4.74%
Answer:
The correct answer is Decrease by $5,500.
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate the previous operating income, by using following formula:
Previous operating income = ($8.5 - $5.25) × 10,000 units - $22,000
= $10,500
Now, we will calculate the current operating income by using following formula:
New operating income = ($7.5 - $5.25) 12,000 units - $22,000
= $5,000
So, the change in operating income can be calculated as
Change in operating income = New operating income - Previous operating income
= $5,000 - $10,500
= -$5,500 ( Negative shows Decrease)
= Decrease by $5,500.
Answer:
A. $75,000 dividend
Explanation:
This is not a capital gain as it do not come from the change in the value of the previously owned shares this are new shares.
The shares which N and M provide in favor to Ben are an stock dividend thus, the tax treatment should be of dividends as well.
Answer:
The Cash paid to suppliers was $85,000
Explanation:
Data provided in the question:
Cost of goods sold = $100,000
Decrease in inventory = $5,000
Increase in accounts payable = $10,000
Now,
Cash paid to suppliers will be
= Cost of goods sold - Decrease in inventory - Increase in accounts payable
= $100,000 - $5,000 - $10,000
= $85,000
Hence,
The Cash paid to suppliers was $85,000
