Answer:
c. 12.56%
Explanation:
Debt-to-value=D/(D+E) =0.4=> D=0.4D + 0.4E => 0.6D = 0.4E => D/E=4/6=2/3
According to M&M proposition II with taxes,
re=r0+(D/E)(r0-rd)(1-Tax rate)
. Where re= levered cost of equity(or cost of equity when the firm is levered)=.1492, r0 = unlevered cost of equity,Tax rate=34%=.34, rd=pretax cost of debt=7.2%=0.072,D/E=2/3
re = r0+(2/3) * (r0 - 0.072)*(1-.34)
=> 0.1492=r0(1+(2/3)*(1-.34)) -(2/3)*(.072)*(1-.34)
=> 0.1492 = r0(1+0.44) -0.03168
=> 0.1492 = 1.44*r0 -0.03168
r0 = (.1492+0.03168)/1.44
r0 =0.1256
r0 =12.56%
Thus, r0=unlevered cost of equity=12.56%
The answer is 40 because you have to divide 60 and then 1.50 to get your answer
Answer:
The answer is: E) None of the above
Explanation:
Using an excel spreadsheet and the RATE function, we can calculate the monthly interest rate of renting the TV:
=RATE(36,-60,1000)
= 4.94% monthly interest rate
Then we multiply the monthly interest rate by twelve to get the APR:
APR = 4.94% x 12 = 59.3%
There are several ways you can find a record. The easiest way is by using the find command. You can do this by pressing the combination keys Control + F. You will then see a mini search box in the top right corner of your screen. Lastly, type in the word, phrase, or record that you want to find. You will then be directed to several highlighted words, and TADA! :D
Hope this helps :)
Answer:
(D) Dr Sales Returns and Allowances 150,000
Cr Sales Refund Payable 150,000
Dr Inventory Returns Estimated 90,000
Cr Cost of goods sold 90,000
Explanation:
Based on the information given The adjusting Journal entry or entries to record the expected sales returns is (are):
Dr Sales Returns and Allowances 150,000
Cr Sales Refund Payable 150,000
[(8%*2,000,000)-10,000]
Dr Inventory Returns Estimated 90,000
Cr Cost of goods sold 90,000
[(8%*1,200,000-6,000]
