Develop the product / Release the new product.
Are you asking if it’s true or false?
Answer:
rE= 0.163333 or 16.3333% rounded off to 16.33%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure which can contain one or more of the following components namely debt, preferred stock and common equity. The formula to calculate WACC of a firm with only two components including debt and equity is as follows,
WACC = wD * rD * (1 - tax rate) + wE * rE
Where,
- wD and wE represents the weight of debt and common equity respectively.
- rD and rE represents the cost of debt and common equity respectively.
- We take after tax cost of debt (1 - tax rate)
To calculate the cost of equity, we can plug in the values of remaining variables as given in the question in the above formula,
0.122= 0.4 * 0.08 * (1 - 0.25) + 0.6 * rE
0.122 = 0.024 + 0.6 * rE
0.122 - 0.024 = 0.6 * rE
rE = 0.098 / 0.6
rE= 0.163333 or 16.3333% rounded off to 16.33%
Answer:
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Factory Payroll 21030
Cash 21030
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Goods in process 16200
Factory Overhead 4830
Factory Payroll 21030
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Explanation: The payment of the total labor factory costs must be recorded, we debit the "Factory payroll" cost account and credit the "cash" account as they were paid in cash.
Then we must allocate these costs to the production process, therefore we debit the "goods in process" account for the amount of <u>direct labor</u> consumed, and "factory overhead" for the amount of <u>indirect labor </u>consumed, and finally credit the account " Factory payroll " for the total.
Answer:where’s the picture or problem
Explanation: