Answer:
cost of equity is 11.60 %
Explanation:
Given data
cost of capital = 10.9 percent
tax rate = 35 percent
earnings = $21,800
bonds outstanding = $25,000
rate = 6 %
to find out
cost of equity
solution
we will find first value of unlevered
value of unlevered = earning ( 1 - tax rate ) / cost of capital
value of unlevered = 21800 ( 1 - 0.35 ) / 0.109 = $130000
so
value of unlevered will be for firm = 130000 × bond outstanding × tax rate
value of unlevered will be for firm = 130000 × 25000 × 35%
value of unlevered will be for firm = $138750
so value of firm will be = bond outstanding + equity
so equity will be = 138750 - 25000
equity = $113750
so now
cost of equity will be = cost of capital + ( cost of capital - rate) (bonds / equity ) ( 1 - tax rate )
cost of equity will be = 10.9%+ ( 10.9 % - 6%) (25000 / 113750 ) ( 1-0.35)
so cost of equity = 11.60 %
Answer:
I will say c I not shore 100%
Answer: A.) Contribution Margin analysis
Explanation: The contribution margin analysis could be explained as an analytical tool in accounting which helps managers in observing variation or differences in the budgeted and actual contribution margin of a product. The contribution margin is used to determine the revenue made on a product after deducting the fixed cost incurred in it's production. It is also used to evaluate the performance of individual product derived from the amount of residual profit after deducting necessary production cost.
Answer and Explanation:
Martial Law is a state in which a territory is occupied by a country's military forces to restore or impose order under certain emergencies. Some rights such as the right to free transit, speech, and protection could be suspended during the time the Martial Law lasts.
Rumors of Martial Law arose in the U.S. as a result of the COVID-19 Coronavirus spread (2020). Quarantine has been declared worldwide and different countries have imposed Martial Law to control the number people infected by the disease but not particularly in the U.S. In most metropolis it would be necessary since the closest people live the highest the risk of infection but that is not the case of most states in the U.S. Therefore, it is unlikely a Martial Law will be enacted.
This company's accounting records are: Incorrect because debits side do no equal credits side.
<h3>Accounting record</h3>
Based on the information given their is an error when recording the journal entry reason been that we are supposed to credit cash with the amount of $200 and not $20.
Due to this error this company's accounting records will be wrong or Incorrect based on the fact that the debits side do no equal credits side.
The principle of accounting entry states that "Every debit entry must have a corresponding credit entry and every credit entry must have a corresponding debit entry"
The correct entry was supposed to be:
Debit Account payable $200
Credit Cash $200
Inconclusion this company's accounting records are: Incorrect because debits side do no equal credits side.
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