Given the following parameters:
The company sold $12,000 worth of
bicycles, with an extended warranty.
Average warranty expense is
estimated to be 2% of sales.
The current period's entry to
record the warranty expense is:
Warranty Expense $240
Estimated Warranty Liability $240
Rationale - 12,000 x 0.02 = 240
Answer:
The WACC is 8.66%
Explanation:
The WACC or weighted average cost of capital is the cost to firm of its capital structure which can have 3 components namely debt, preferred stock and common stock. We take the weighted average of these components and their respective costs to calculate WACC. Furthermore, we take the after tax cost of debt for WACC calculation and that is why we multiply the cost of debt by (1-tax rate).
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
WACC = 0.33 * 0.065 * (1-0.28) + 0.08 * 0.06 + 0.59 * 0.1125
WACC = 0.086619 or 8.86619% rounded off to 8.66%
A college has found that some of its graduating students accept offers from Amazon that pay less than offers at other companies because :
C) Amazon has been able to lower some of its employees' WTS for their labor
Explanation:
- A college has found that some of its graduating students accept offers from Amazon that pay less than offers at other companies. following is the most likely explanation for this scenario
- C) Amazon has been able to lower some of its employees' WTS for their labor
- Amazon, is an American multinational technology company based in Seattle.
- The company initially started as an online place to shop for books but later expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry.
Answer:
The marginal cost will most likely increase to $2.00
Explanation:
Because I just did it.
Answer:
By mentioning to be "a magical world where your dreams come true", Disney seeks to position its brand by appealing to the illusion of its youngest consumers, who believe and enjoy that magical world as they consider it to be real. In turn, it also targets a more adult audience, the parents of those children and even young adults who remember their childhood, and seek through Disney to return to that magical world far from the problems of daily life. Thus, through empathy and the generation of nostalgia, Disney captures a market that is receptive to its products due to the sentimentality they imply.
