Answer:
$ 615,000
Explanation:
Data provided :
Capital budget = $ 650,000
Debt ratio = 40%
Equity ratio = 60%
thus,
The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000
= $ 390,000
Dividend to be paid = $ 225,000
Therefore,
the net income must be earned = $ 390,000 + $ 225,000
or
The net income must be earned = $ 615,000
Answer:
True
Explanation:
The Toyota Production System is an automated system with a touch of human control.
This system has two main aspects as the automation and Just in Time activities.
This system works on continuous improvement as it targets to work better everyday, and with Just in Time inventory system it minimises its cost of inventory and further with a touch of human effort in automation it respects humans too.
Answer:
d.9.34%
Explanation:
The formula for the weighted average cost of capital is provided below as a starting point for solving this question:
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
weight of equity=1-debt %=1-50%=50%
weight of debt=50%
cost of equity=13.6%
after-tax cost of debt=7.8%*(1-35%)
after-tax cost of debt=5.07%
WACC=(50%*13.6%)+(50%*5.07%)
WACC=9.34%
The discount rate is computed based on the target or preferred capital structure
Answer:
Financial accounting practise is governed by concepts and rules known as generally accepted accounting principles <em>GAAP </em>. To use and interpret financial statements effectively we need to understand these standards. If these standards are not understood implemented or maintained the companies would fail to achieve their targets and lose all the business.
A main purpose of GAAP is to make information in financial statements relevant reliable and comparable. Relevant information affects the decision of its users. Reliable information is trusted by users. Comparable information is helpful in contrasting organizations.
An audit examines whether financial statements are prepared using GAAP. It does not attest to the accuracy of the statements.
State ethics codes requires CPAs who audit financial statement to disclose areas where those statements fail to comply with GAAP. If CPAs fail to report non compliance , they can lose their licenses and subject to criminal action and fines.
Because the government is out of money so they decide to take it from others