Answer:
option (C) 11.8%
Explanation:
Debts = 30%
Preferred stock = 10%
Common stock = 60%
before-tax cost of debt = 11%
cost of preferred stock = 10.3%
cost of common stock = 14.7%
New common stock sales cost = 16%
The weighted average cost of capital for the company
marginal tax rate = 40%
= Debt × before-tax cost of debt × (1 - tax)) + (Common stock × cost of common stock ) + (Preferred stock × cost of preferred stock )
= 0.30 × 0.11 × (1 - 0.40) + (0.60 × 0.147 ) + ( 0.10 × 0.103 )
= 0.0198 + 0.0882 + 0.0103
= 0.1183
Or
= 0.1183 × 100% = 11.83% ≈ 11.8%
Hence.
The correct answer is option (C) 11.8%
Answer:
copyright
Explanation:
Copyrights are considered intellectual property. Copyright law protects the intellectual work of an author or corporation (e.g. songs, trademarks, movies, books, etc.). The owner of the copyright has the right to decide if it allows third parties to use their protected material either for money or freely. So anyone that wishes to copy or use copyrighted material must be authorized by the owner.
Answer and Explanation:
The journal entries are as follows;
a. On Jan 1
No journal entry is required
b. On Feb 5
Contra asset Dr $1,320
To Sales revenue $1,320
(being sales revenue is recorded)
Cost of goods sold Dr $670
To Inventory $670
(being cost of goods sold is recorded)
c. On Feb 25
Cash $3,300
Contra asset Dr $1,320
To Sales revenue $1,980
(being sales revenue is recorded)
Cost of goods sold Dr $300
To Inventory $300
(being cost of goods sold is recorded)
