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.
Answer:
The total comes to $121.2.
Explanation:
You went grocery shopping and paid with a check.
Cost of groceries: $45.20.
Your check bounced, resulting in a $25 fee from the bank due to insufficient funds in your account at the time of payment for groceries.
The bank also charged your account an additional $25 for the bounced check.
The grocery store notified you that you owed them a $25 fee because of the bounced check.
You will need to pay $45.20 again.
Money order cost: $1.
Therefore, your total grocery expenditure equals:
$45.20 (actual grocery cost) + $25 (owed to the bank for your friend's bounced check) + $25 (bank fee for bounced check) + $25 (fee charged by the grocery store for the bounced check) + $1 (money order)
= $121.20.
Thus, your actual outlay for groceries amounts to $121.20.
When both cohesiveness and performance norms are elevated, productivity also tends to be high. Explanation: This statement holds true regarding the relation between group cohesiveness and the standards of performance on productivity. Cohesiveness is a defining aspect that influences group dynamics and is significant from a behavioral standpoint. It refers to the extent of attraction and commitment of group members to one another and their desire to remain part of the group. Cohesiveness illustrates how closely members feel connected to the group, based on the level of camaraderie among them. The greater the cohesiveness, the more members influence one another to conform to group standards, ultimately reflecting how individuals identify with the group.
Answer: Achieving peace of mind
Explanation:
A secure retirement plan focused on financial stability includes:
Automating savings.
Managing impulsive spending.
Assessing spending habits and living frugally.
Investing towards future goals.
First, it is necessary to record the depreciation expenses for January, February, and March: Depreciation expense over the three months is calculated as ($42,000 - $5,000) x 3/60 = $1,850. As of April 1, the journal entries for the depreciation expense for January, February, and March shall reflect Dr Depreciation Expense 1,850 and Cr Accumulated Depreciation 1,850. Consequently, the book value of the truck becomes $12,400 - $1,850 = $10,550. 1) In the scenario where the truck sells for $12,000 on April 1, the entries will be: Dr Cash 12,000, Dr Accumulated Depreciation 31,450, Cr Gain from Sale 1,450, and Cr Truck 42,000. If it instead sells for $9,000, the entries will adjust to: Dr Cash 9,000, Dr Accumulated Depreciation 31,450, Dr Loss from Sale 1,550, and Cr Truck 42,000. 2) Any gain or loss from the truck's sale should be recorded on the income statement under gains or losses from asset sales. 3) If Swann adopts IFRS and there was a revaluation surplus recorded on the truck, upon selling it for $12,000 on April 1, the entries should show: Dr Cash 12,000, Dr Revaluation Surplus 4,000, Dr Loss from Sale 1,450, and Cr Truck 14,550.
