Answer:
8.45%
Explanation:
The formula used to calculate WACC is:
WACC = {[total equity/(total debt + equity)] x cost of equity} + {[total debt/(total debt + equity)] x cost of debt x (1 - tax rate)}
first we have to calculate the cost of equity:
cost of equity = risk free rate + (beta x market risk premium) = 4% + (1.2 x 7.5%) = 4% + 9% = 13%
now, WACC:
WACC = {[880/(880+880)] x 13%} + {[880/(880+880)] x 6% x (1 - 35%)} = (0.5 x 13%) + (0.5 x 6% x 0.65) = 6.5% + 1.95% = 8.45%
WACC = weighted average cost of capital is the rate at which the company effectively finances its assets
Answer:
1. T-accounts:
Accounts Debit Credit
Accounts Receivable
Balance $4,200
Service Revenue 8,400
Cash 10,200
Accounts Debit Credit
Service Revenue
Accounts Receivable 8,400
Accounts Debit Credit
Supplies
Balance $400
Accounts Payable 2,300
Balance c/d $2,700
Accounts Debit Credit
Accounts Payable
Balance $3,500
Supplies 2,300
Cash $3,700
Balance c/d $2,100
Accounts Debit Credit
Cash Account
Balance $3,400
Accounts Receivable 10,200
Advertising $1,000
Accounts Payable 3,700
Deferred Revenue 1,100
Balance c/d $10,000
Accounts Debit Credit
Advertising Expense
Cash 1,000
Accounts Debit Credit
Accounts Payable
Cash 3,700
Accounts Debit Credit
Deferred Revenue
Balance $300
Cash 1,100
Balance c/d $1,400
Explanation:
a) Data:
General Entries:
Accounts Debit Credit
1. Accounts Receivable 8,400
Service Revenue 8,400
2. Supplies 2,300
Accounts Payable 2,300
3. Cash 10,200
Accounts Receivable 10,200
4. Advertising Expense 1,000
Cash 1,000
5. Accounts Payable 3,700
Cash 3,700
6. Cash 1,100
Deferred Revenue 1,100
b) The beginning balance of each account before the transactions is:
Cash, $3,400
Accounts Receivable, $4,200
Supplies, $400
Accounts Payable, $3,500
Deferred Revenue, $300
Answer:
if you want to maximize the amount of interest that you will earn, then you should choose bank C
Explanation:
interest gained in 1 year in bank A = $5,600 x 4.61% = $258.16
interest gained in 1 year in bank B = $5,600 x [(1 + 4.15%/12)¹² - 1] = $236.87
interest gained in 1 year in bank C = $5,600 x [(1 + 4.57%/2)² - 1] = $258.84
interest gained in 1 year in bank D = $5,600 x [(1 + 4.25%/4)⁴ - 1] = $241.82
we have to calculate the effective interest rate paid by each bank using the following formula:
effective interest = (1 + i/n)ⁿ - 1
Answer: 2. Once multicurrency has been activated, it cannot be deactivated
Explanation:
Quickbooks is an accounting software mostly for small to medium businesses.
One of the features they offer is the multicurrency setting which enables users to record transactions in a host of foreign currencies.
This feature however requires care to be used simply because once it is turned on, it cannot be deactivated. For this reason Quickbooks warns the user several times before they activate it.
Maybe the adjusted book balance is $45 not sure
