Answer:
c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
Explanation:
The journal entry is shown below:
Cash $70,000 (5,000 shares × $14)
To Common stock $50,000 (5,000 shares × $10)
To Additional Paid in capital in excess of par value - Common stock $20,000 (5,000 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased assets and at the same time it also increased the overall stockholder equity so common stock and the additional paid in capital for common stock is credited
They most likely need to fulfill the security need of Maslow’s Hierarchy of needs. Employment and financial stability fall under the umbrella of the security need, in order to ensure the physiological needs can be met in the future.
Answer:
A. Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends
Answer:
The correct answer is 8.23%.
Explanation:
According to the scenario, the computation can be done as:
WACC of debt = Respective costs of debt× Respective weight of debt
= (0.4 × 5)
= 2
WACC of preferred = Respective costs of preferred × Respective weight of preferred
= (0.15 × 7)
= 1.05
WACC of common equity = Respective costs of common equity × Respective weight of retained earning
= (0.45 × 11.5)
= 5.175
So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity
= 2 + 1.05 + 5.175
= 8.225 or 8.23 (approx.)
