Answer:
Upon issuance, Ozark should "Credit premium on bonds payable $100,000"
Explanation:
The bond issue price is calculated as ($10 million * $101) = $10,100,000
The bond's face value is = $10,000,000
The bond premium equals $10,100,000 - $10,000,000
Thus, the bond premium is $100,000
Journal entry
Debit Credit
Cash $10,100,000
Premium on bonds payable $100,000
Bonds payable $10,000,000
Conclusion: Therefore, upon issuance, Ozark should "Credit premium on bonds payable $100,000"
<span>When there are ongoing speculations regarding a company's financial troubles, it can lead to a decrease in employees' internal motivation.
The level of Maslow's hierarchy that corresponds to this scenario is the safety needs level.
</span><span>Safety needs in Maslow's framework pertain to the requirement for security and safeguarding.
This security encompasses the safety of life and belongings, as well as job stability, among other aspects.
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Since the WACC exceeds 7.5%, option D is the appropriate selection. Explanation: The weighted average cost of capital (WACC) reflects a company’s capital structure costs. To compute WACC, we evaluate the weight of respective capital structure components alongside the cost of each. The components can include debt, preferred stock, and common stock. The WACC formula is as follows: WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE. Here, w denotes the weight, and r indicates the cost for each component—debt (D), preferred stock (P), and common stock (E). Initially, we derive costs of debt and equity. We apply the market value of debt in the WACC calculation. The cost of debt takes its yield to maturity as the current rate, thus rD is set at 6%. We can ascertain the cost of equity utilizing the constant growth model for dividends. Thus, we can develop the equation P0 = D0 * (1+g) / (r - g), yielding values of 80 = 5 * (1+0.05) / (r - 0.05) simplifying to 80(r - 0.05) = 5.25. Solving grants us r = 0.115625 or 11.5625%. Now, calculating WACC yields WACC = 0.5 * 0.06 * (1-0.3) + 0.5 * 0.115625 = 0.0788125 or 7.88125%. Thus, since WACC is greater than 7.5%, option D remains correct.
The return rate for the asset in this scenario is calculated to be 6.14%. This is determined by evaluating the Internal Rate of Return for the given cash flows, as outlined in the provided information.
Answer:
(b) macaroni is categorized as an inferior good, and the price elasticity of supply is zero.
Explanation:
An increase in income by 10 percent results in a 15% reduction in the demand for macaroni and cheese without any change in price. This suggests that macaroni is indeed an inferior good with zero price elasticity of supply.
Inferior goods experience lower demand as incomes rise, supported by the observation that ‘’A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni demanded’’.
In terms of price elasticity of supply, a value of zero indicates that the supply amount remains unchanged regardless of price fluctuations: the supply is "fixed". The original scenario states there was ''no change in the price of macaroni,'' indicating that the elasticity of supply in this situation is zero.
