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.
Answer:
Explanation:
The journal entry is shown below:
On June 1
Cash A/c Dr $99,000
To Notes payable A/c $99,000
(Being the amount borrowed is recorded)
For recording this transaction, we debited the cash account and credited the notes payable account so that the correct posting can be done
All other information which is given is not relevant. Hence, ignored it
Answer:
Annual depreciation= $4,300
Explanation:
Giving the following information:
Purchasing price= $27,600
Salvage value= $1,800
Useful life= 6 years
To calculate the depreciation expense using the straight-line method, we need the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (27,600 - 1,800) / 6= $4,300
Answer:
The correct answer is D. learning to stand alone is part of growing up.
Explanation:
