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4 years ago

Which of the following statements is CORRECT?

Business

1 answer:

OleMash [197]4 years ago

7 0

Answer:

Explanation:

The relevant WACC can change depending on the amount of funds a firm raises during a given year. Moreover, the WACC at each level of funds raised is a weighted average of the marginal costs of each capital component, with the weights based on the firm's target capital structure.

The weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets.

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Marie's Clothing Store had an accounts receivable balance of $ 470 comma 000 at the beginning of the year and a yearminusend bal

zimovet [89]

Answer: 59 days

Explanation: As we know that,

$Average\:collection\:period=\frac{365\:days}{Debtor\:turnover\:ratio}$

And,

$Debtor\:turnover\:ratio= \frac{net\:credit\:sales}{average\:debtors}$

where,

$average\:debtors\:=\frac{470,000+630,000}{2}$

= $550,000

so,

$Debtor\:turnover\:ratio= \frac{3,400,000}{550,000}$

=6.19

Now, putting the values into first formula we have :-

$Average\:collection\:period=\frac{365\:days}{6.19}$

= 59 days

3 0

3 years ago

Read 2 more answers

Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi

blondinia [14]

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

December 31, dividends received

Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

Decrease by $5,000 due to the purchase of stocks.
Increase by $60 due to the dividends received.
net cash from investing activities = -$4,940

4 0

4 years ago

You pay $21,600 to a mutual fund, which has a NAV of $18 per share at the beginning of the year. The fund deducted a front-end l

Tomtit [17]

Answer:

4.23%

Explanation:

For computing the rate of return on the fund, we need to do following calculations

1. The fund after deducting the front-end load is

= $21,600 - $21,600 × 4%

= $21,600 - $864

= $20,736

2. Now number of bought is

= $20,736 ÷ $18 per share

= $1,152

3. The closed NAV is

= $18 + $18 × 10%

= $18 + $.8

= $19.8

4. So, the end year asset value is

= Closed NAV × number of shares bought

= $19.8 × 1,152

= $22,809.60

5. Now the year end investment value after considering the expense ratio is

= $22,809.60 × (1 - 1.3%)

= $22,513.0752

6. Now the rate of the return is

= ($22,513.0752 - $21,600) ÷ ($21,600)

= 4.23%

8 0

4 years ago

Samarium is a "rare-earth" element that is used to produce magnets with permanent magnetization, drugs for chemotherapy, control

kari74 [83]

Answer:

Explanation:

Attached is a solution to the question

3 0

3 years ago

QUESTION 4 On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, n

wolverine [178]

Answer:

D. Cash 8,000 Accounts Receivable 8,000

Explanation:

6 0

4 years ago