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weqwewe [10]
3 years ago
15

For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at

its target capital structure.a. re > rs > WACC > rd.b. WACC > re > rs > rd.c. rd > re > rs > WACC.d. WACC > rd > rs > re.e. rs > re > rd > WACC.
Business
1 answer:
Varvara68 [4.7K]3 years ago
6 0

Answer:

a. re > rs > WACC > rd.

Explanation:

Re represents cost of equity

Rs represents cost of retained earnings

WACC represents Weighted average cost of capital

Rd represents cost of debt

Basically the cost of equity is highest as there is no assured return on such equity investment.

Cost of retained earnings is less than cost of equity because amount invested is already in hands of company, although belonging to equity holders, thus is higher than total weighted cost of capital.

WACC is the cost after providing weights to every source of capital it is lower then equity, higher than debt because of average.

Cost of debt is lowest because of tax benefit from it.

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Prior, Inc. has decided to raise additional capital by issuing $175,000 face value of bonds with a coupon rate of 10%. In discus
bogdanovich [222]

Answer:

cash                 150,000 debit

discount on BP 47,500 debit

    bonds payable          175,000 credit

    warrants                      22,500 credit

If the warrants were undetachabel they wouln't be able to be transfer in a secondary market thus, they will not be traded the accounting will only the 150,000 as bonds an dthe diffrence with the 175,000 as discount.

cash                 150,000 debit

discount on BP 25,000 debit

       bonds payables      175,000 credit

Explanation:

136,000  bonds  136,000/160,000 = 0.85

<u>  24,000 </u>warrant 24,000 /160,000 = 0.15

160,000

bonds 150,000 x 0.85 = 127,500

discount on bonds: 175,000 - 127,500 = 47,500

warrants 150,000 x 0.15 = 22,500

8 0
3 years ago
Which 3 should be entered as individual transactions, with their original dates, rather than entered using the initial journal e
Lerok [7]

a. Check to utility company for $87.26.

d. The three open invoices issued to the hair stylist.

e. Check to the telephone company for $54.19

Telephone expense, Utility expense and Rent Invoices issued to barbers require a new journal entry.

An expense is an item that generally requires an outflow of money or some form of property to another person or group in payment for an item, service, or other category of expense. For tenants, rent is an expense. For students and parents, teaching is a cost.

Expenses are money that costs or must be spent to do something. Most of the marble was imported from Italy at great expense. Vacations with dogs can often come at an additional cost. It wasn't a lot of money, but it helped me pay my bills.

Learn more about expense here

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6 0
1 year ago
Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The
lbvjy [14]

Answer:

a.The bonds will sell at a premium if the market rate is 5.5 percent.

Explanation:

Following information provided in the question

Coupon rate = 6%

Face value = $1,000

Time period = 10 years

And if we consider the interest rate 5.5%

So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium

6 0
3 years ago
Which of the following Multi-Channel Funnels reports would you use to see the most common sequences of marketing touch points th
ololo11 [35]

The most typical sequences of marketing touch points that result in conversions on your website or app are shown in the Assisted Conversions reports from Multi-Channel Funnels.

Marketing is the term used to describe the activities a business engages in to encourage the purchase or sale of a good or service. Delivering goods to customers or other businesses includes marketing activities like advertising and sales. Affiliates will occasionally carry out marketing for a business.

Employees in a company's marketing and promotion divisions aim to attract the attention of key target populations through advertising. Promotions are aimed at specific demographics and may include celebrity endorsements, memorable slogans or taglines, eye-catching packaging or graphic designs, and general media exposure.

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4 0
1 year ago
Who is one of the first salem residents to be accused of witchcraft in this play?
KiRa [710]
N Salem Village in the Massachusetts Bay Colony, Bridget Bishop, the first colonist to be tried in the Salem witch trials, is hanged after being found guilty of the practice of witchcraft.

Trouble in the small Puritan community began in February 1692, when nine-year-old Elizabeth Parris and 11-year-old Abigail Williams, the daughter and niece, respectively, of the Reverend Samuel Parris, began experiencing fits and other mysterious maladies. A doctor concluded that the children were suffering from the effects of witchcraft, and the young girls corroborated the doctor’s diagnosis. Under compulsion from the doctor and their parents, the girls named those allegedly responsible for their suffering.

On March 1, Sarah Goode, Sarah Osborne, and Tituba, an Indian slave from Barbados, became the first Salem residents to be charged with the capital crime of witchcraft. Later that day, Tituba confessed to the crime and subsequently aided the authorities in identifying more Salem witches. With encouragement from adults in the community, the girls, who were soon joined by other “afflicted” Salem residents, accused a widening circle of local residents of witchcraft, mostly middle-aged women but also several men and even one four-year-old child. During the next few months, the afflicted area residents incriminated more than 150 women and men from Salem Village and the surrounding areas of satanic practices.

In June 1692, the special Court of Oyer and Terminer ["to hear and to decide"] convened in Salem under Chief Justice William Stoughton to judge the accused. The first to be tried was Bridget Bishop of Salem, who was accused of witchcraft by more individuals than any other defendant. Bishop, known around town for her dubious moral character, frequented taverns, dressed flamboyantly (by Puritan standards), and was married three times. She professed her innocence but was found guilty and executed by hanging on June 10. Thirteen more women and five men from all stations of life followed her to the gallows, and one man, Giles Corey, was executed by crushing. Most of those tried were condemned on the basis of the witnesses’ behavior during the actual proceedings, characterized by fits and hallucinations that were argued to have been caused by the defendants on trial.

In October 1692, Governor William Phipps of Massachusetts ordered the Court of Oyer and Terminer dissolved and replaced with the Superior Court of Judicature, which forbade the type of sensational testimony allowed in the earlier trials. Executions ceased, and the Superior Court eventually released all those awaiting trial and pardoned those sentenced to death. The Salem witch trials, which resulted in the executions of 19 innocent women and men, had effectively ended.

4 0
3 years ago
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