Answer:
12.75 %
Explanation:
Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.
Cost of Capital = E/V × Ke + D/V × Kd
Where,
E/V = Market Weight of Equity
= 0.55
Ke = Cost of Equity
= 15%
D/E = Market Weight of Debt
= 0.45
Kd = Cost of Debt
= 10%
Therefore,
Cost of Capital = 0.55 × 15% + 0.45 × 10%
= 12.75 %
Answer: C) $2,000 per week.
Explanation:
The slope of the project refers to the additional amount that it would cost to be able to finish the project faster than schedule.
In the question, the construction activity is for 14 weeks at a rate of $5,000 for the laborers per week. If you wanted to reduce this project duration to 10 weeks, you will have to spend an additional $2,000 more per week.
This $2,000 is therefore the slope of the activity.
Answer:
C)Two.
Paying employees' salaries for the current month
Receiving but not paying a current utility bill.
Explanation:
When salaries are played to employees, an entry is recorded in Salary Expense account.
In accrual accounting when utility bill is received it is recognised in the books even when payment has not been made. Because it is a current utility bill it has to be recorded in this period.
The statement that <span>is an objection to relying that solely on Return on Market Investment (ROMI) results is that </span>"ROMI requires knowing what would have happened without the marketing expenditure." ROMI <span> is the contribution to profit attributable to </span>marketing<span> (net of marketing spending), divided by the marketing 'invested' or risked.</span>
Answer:
$17,000
Explanation:
The amount of the Allowance for Bad Debts account after adjustment is shown below:
= Debit balance of Allowance for Bad Debts account + uncollectible accounts
= $7,000 + $10,000
= $17,000
The journal entry is also shown for better understanding
Bad debt expense A/c Dr $17,000
To Allowance for doubtful debts $17,000
(Being bad debt expense is recorded)
