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Akimi4 [234]
3 years ago
7

For which capital component must you make a tax adjustment when calculating a firmâs weighted average cost of capital (WACC)?

Business
1 answer:
SOVA2 [1]3 years ago
4 0

Answer:

a. Debt

Explanation:

For determining the weighted average cost of capital we used the after tax cost of debt as the interest expense is the tax deductible that represents that if there is any issue of debt so it would be decreased as of tax impact

Therefore as per the given situation, the debt is selected

hence, the option a is correct

And, all the other options are wrong

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A company has the following transactions during the month of February. February 2 Pay $610 for radio advertising for February. F
timama [110]

Answer:

Please see the required journals below.

Explanation:

February 2 Pay $610 for radio advertising for February.

Debit Advertising Expense $610

Credit Cash $610

February 7 Purchase beauty supplies of $1,210 on the account.

Debit Supplies $1,210

Credit Accounts Payable $1,210

February 14 Provide beauty services of $2,450 to customers and receive cash.

Debit Cash $2,450

Credit Service Revenue $2,450

February 15 Pay employee salaries for the current month of $810.

Debit Salaries Expense $810

Credit Cash $810

February 25 Provide beauty services of $910 to customers on account.

Debit Accounts receivable $910

Credit Service Revenue $910

February 28 Pay utility bill for the current month of $210.

Debit Utilities Expense $210

Credit Cash $210

3 0
3 years ago
Read 2 more answers
A __________ is a local operation completely owned by a foreign company.
solong [7]
Foreign subsidiary is correct
3 0
3 years ago
Indicators created by mathematical formulas using a company's financial information for comparison purposes are called ______.
Vinil7 [7]

Current ratio is a mathematical formulas which make use of a company's financial information for comparison purposes

<h3>What is current ratio?</h3>

The current ratio is the one that measures a company's ability to cover its short-term obligations with its current assets. It indicate whether or not a company is able to meet its short term financial obligations.

Current ratio is computed by dividing the current asset over current liability. It compare a company's financial information.

Hence, indicators created by mathematical formulas using a company's financial information for comparison purposes are called current ratio.

Learn more about current ratio here : brainly.com/question/25894261

7 0
2 years ago
Which methods of evaluating a capital investment project use cash flows as a measurement basis?
GalinKa [24]

Answer:

The correct answer is "Payback period, internat rate of return and net present value".

Explanation:

Which methods of evaluating a capital investment project use cash flows as a measurement basis?

Payback period, internat rate of return and net present value

The payback period: is used to determine how much asset is back after the initial saving; The internal rate of return: is used to measure potential profit from an investment; The net present value: is used to determine the worth of all the company's assets

5 0
3 years ago
Read 2 more answers
Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net c
Elena L [17]

Answer:

Internal rate of return

Explanation:

The internal rate of return is that return in which the net present value equivalent to zero

i.e.

Net present value = 0

That means

Initial investment = Present value of cash inflows after charging the discounting factor like 10% 12% etc

So as per the given situation, the internal rate of return is the correct answer

3 0
3 years ago
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