Answer:
WACC is 9.26%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of common share x Weightage of common share ) + ( Cost of Preferred share x Weightage of Preferred share ) + ( Cost of debt x Weightage of debt )
Cost of debt is already given as after tax cost of debt.
WACC = ( 12.75% x 45% ) + ( 7.5% x 15% ) + ( 6% x 40% )
WACC = 5.7375% + 1.125% + 2.4% = 9.2625 % = 9.26%
Answer: knowledge based
Explanation:
The foundation of trust that Edgar has in this team is referred to as knowledge based.
Since the accounting professionals possess top- notch accounting skills and have never let him down while working on a project together, this is referred to as knowledge based.
Therefore, the correct option is C.
Answer:
Option C is correct
Explanation:
Using straight line depreciation method we can calculate the annual depreciation of the machinery, which can be calculated from the following formula:
Straight Line Depreciation = (Cost - Salvage Value) / Useful value
Straight Line Depreciation = ($95000 - $5000) / 5 years life = $18,000
The double entry would be:
Dr Depreciation Expense $18,000
Cr Accumulated Depreciation $18,000
Answer: True
Explanation: When the central monetary authority of a country attaches the value of their country's currency in relation to any other country's currency, then such an arrangement is called pegged exchange rate system.
The reference currency used by the authorities are generally of those countries which have a strong monetary base like US dollar or Euros.
Hence, from the above we can conclude that the given statement is true.
