Answer:
WACC= 17.95%
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.
It is calculated using the formula below:
WACC = (We×Ke) + (Wd×Kd)
Ke-cost of equity- 22%
We- equity weight- 100% - 45% = 55%
Kd-After tax cost of debt-10.3%
Wd- 45%
After tax cost of debt = Before tax ×× (1- tax rate)
After tax cost of debt = 13%× (1-0.21) = 10.3%
Cost of equity = 22%
WACC =(0.55× 22%) + (0.45× 13%)=17.95%
WACC= 17.95%
Answer: $4,650 Tax Credit
Explanation: Green Corporation is entitled to file for a work opportunity credit as it has given work opportunities to workers with significant barriers to employment.
Green Corporation is entitled to get 40% on wages paid per year on workers who worked for at least 400 hrs and 25% for at least 120 hrs
Green Corporation had 2 sets of workers in this category and they are:
Set 1 worked 400 hrs and are paid $8,500
Set 2 worked 300 hrs and are paid $5,000
to get the work opportunity credit for 2019:
$8,500 * 40%+ $5,000 *25% = $3,400+$1,250= $4,650
The economic principle of substitution says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.
<h3>The economic principle of substitution</h3>
- According to the principle of substitution, the cost of purchasing a substitute that is just as desired tends to establish the upper limit of value, assuming no inopportune delays.
- A shrewd investor would not spend more on an asset that generates income than it would cost to construct or buy an asset of a similar nature.
- According to this theory, the cost of acquiring a comparable substitute property with the same use, design, and revenue determine the maximum value of a property in most cases.
- For instance, why would somebody pay $1,000,000 for a home when they could pay $750,000 for a different but as appealing home in the same neighborhood?
To learn more about the economic principle of substitution refer to:
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Answer:
1. Drawings A/c. dr. 15,000
To Cash A/c. 15,000
2. Cash A/c. Dr. 63,000
To Sales A/c. 63,000
3. Drawings A/c. Dr. 12,000
To Cash A/c. 12,000
4. Purchases A/c. Dr. 31,000
To Creditors A/c. 31,000
5. Drawings A/c. Dr. 16,000
To Purchases A/c. 16,000
6. Dalip Singh A/c. Dr.35,000
To Sales A/c. 35,000
7. Rent A/c. Dr. 22,000
To Bank A/c. 22,000
8. Purchases A/c. Dr. 19,000
To Cash A/c. 19,000
Answer:
Different organizations face different constraints and rules. Not-for-profit organizations have more ways to accumulate capital (such as issuing stocks and bonds) and benefit from economies of scale. But small firms do not have to pay certain kinds of taxes.
Explanation:
Non profit organization such as NGOs have more ways to accumulate capital through international support as a result of the nature of task they are carrying out. International organization that supports NGOs are United Nation, UNICEF, WHO, IMF and world bank among others.
while small firms does not pay certain kind of taxes as a result of the nature of type of business they are into, this limits or reduces their tax payments
