Answer:
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 16(100/155) + 10(55/155)(1-0.33)
WACC = 10.3226 + 2.3774
WACC = 12.7%
Explanation:
WACC is a function of cost of equity and proportion of equity in the capital structure plus after-tax cost of debt and proportion of debt in the capital structure. Since debt-equity ratio is 0.55(55/100), it implies that the total value of the firm is 55 + 100 = 155. Thus, debt proportion will be 55/155 while equity proportion is 100/155.
Answer:
$22,800
Explanation:
Given that,
Balance per bank statement, 8/31/17 = $21,650
Deposit in transit, 8/31/17 = $3,900
Return of customer’s check for insufficient funds, 8/30/17 = $600
Outstanding checks, 8/31/17 = $2,750
Bank service charges for August = $100
At August 31, 2017, Adel's correct cash balance:
= Balance as per bank statement 8/31/17 + Deposit in transit - Outstanding checks
= $21,650 + $3,900 - $2,750
= $22,800
The way that the increasing income would affect the market for spam an inferior good is that it would cause the demand for spam to decrease.
<h3>What is an inferior good?</h3>
This is the term that is used to refer to the good that the demand for falls whenever there is a positive change in income. That is as the income of a person rises, the demand that they would have for an inferior good would be more likely to fall.
Hence we can say that the The way that the increasing income would affect the market for spam an inferior good is that it would cause the demand for spam to decrease.
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Answer:
1. Small expenditures which primarily benefit the current period. REVENUE EXPENDITURES
2. Cost less accumulated depreciation. BOOK VALUE
3. An accelerated depreciation method used for financial statement purposes. DOUBLE DECLINING BALANCE METHOD
4. Tangible resources that are used in operations and are not intended for resale. PLANT ASSETS
5. Equal amount of depreciation each period. STRAIGHT LINE METHOD
6. Expected cash value of the asset at the end of its useful life. SALVAGE VALUE
7. Process of allocating the cost of equipment over its service life. DEPRECIATION
8. Material expenditures that increase an asset's operating efficiency, productive capacity, or useful life CAPITAL EXPENDITURES
9. An accelerated depreciation method used for tax purposes. MACRS
10. Useful life is expressed in terms of units of production or expected use. UNITS OF ACTIVITY METHOD
Explanation:
