Answer: 9.32%
Explanation:
The cost of levered capital is needed to calculate WACC.
Cost of levered capital = Cost of unlevered capital + (Cost of unlevered capital - cost of debt)(1 - tax) * Debt to equity ratio
Debt-equity ratio
= 22% / (100% - 22%)
= 28.205%
Cost of levered capital = 10% + (10% - 6%) * (1 - 31%) * 28.205%
= 10.78%
WACC = (Weight of debt * after tax cost of debt) + (Weight of capital * cost of capital)
= (22% * 6% *(1 - 31%)) + (78% * 10.78%)
= 9.32%
<u>Solution and Explanation:</u>
<u>Journal entry to record the purchase the bags of insultaion.</u>
Date Particulars Debit Credit
Inventory $6875
accounts payable $6875
(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)
<u>entry to record the payment for shipping</u>
Inventory $320
cash $320
( paid shipping charges for bags to warehouse)
<u>entry for return of the defective bags</u>
accounts payable $275
Inventory $275
( returned defective bags to glassco Inc)
<u>To record the payment for the bags kept by compass.</u>
Accounts payable $6600
cash $6600
( payment for remaining bags to Glassco Inc., )
Answer:
$1,440 ; $90 and $270
Explanation:
The computation of the allocation cost for each is shown below:
TV
= (Sale value of TV ÷ Total sales value) × (Entire package sales value)
= ($1,520 ÷ $1,900) × $1,800
= $1,440
Remote
= (Sale value of remote ÷ Total sales value) × (Entire package sales value)
= ($95 ÷ $1,900) × $1,800
= $90
Installation service
= (Sale value of Installation service ÷ Total sales value) × (Entire package sales value)
= ($285 ÷ $1,900) × $1,800
= $270
The total sales value
= $1,520 + $95 + $285
= $1,800
When someone is driving a car or even a motorcycle and is cut off by another vehicle, it can cause an accident. Another result could be one or both drivers threatens the other person or even a pedestrian that was involved. These are examples of "road roage."
Answer:
Demand drops to zero
Explanation:
Infinite elasticity of demand is also called perfect elasticity of demand.
In this scenario the demand for a product is attached to it's price.
There is an infinite change in the quantity demanded as a result of change in price.
Graphically it is a horizontal demand curve as represented in the attached
Even a small increase in price will cause demand to fall to zero.
Examples are luxury goods such as high end cars and expensive jewelry.