Answer:
A Firm
The firm's WACC is:
= 12.16%
Explanation:
a) Data and Calculations:
Common Bonds
Stock
Outstanding shares/bonds 2,000,000 2,000
Market price per unit $2 $1,200
Total market value $4,000,000 $2,400,000
Total value of debt and equity = $6,400,000
Weight 62.5% 37.5% ($2,400/$6,400*100)
Cost of bonds (coupon rate) = 10%
Tax rate = 34%
Firm's beta = 1.5
Risk-free rate = 5%
Market risk premium = 7%
After-tax cost of bonds = 6.6% (1 - 0.34) * 10%
Cost of common stock =
Risk Free Rate + Beta x (Market Return - Risk Free Rate)
= 5% + 1.5 x (7%)
= 5% + 10.5%
= 15.5%
WACC = 15.5% * 62.5% + 6.6% * 37.5%
= 0.096875 + 0.02475
= 0.1216
= 12.16%
Answer:
Given that,
Company's bank reconciliation at June 30 included interest earned = $150
So, it must be cash must be debited and interest revenue must be credited in the accounts.
Therefore, the journal entry is as follows:
Cash A/c Dr. $150
To Interest revenue $150
(To record the interest revenue earned)
Answer:
The criticism is true to a certain degree, and unjustified to another degree.
Explanation:
It is true in the sense that the U.S. has indeed lost a lot of manufacturing to Mexico, simply because Mexico has far lower labor costs, and U.S. manufacturers have decided to take advantage of that by taking their plants to Mexican states.
It is also true that Mexico has been running a trade surplus with the United States in recent years, mainly because of the large manufacturing sector that Mexico has been developing.
On the other hand, the criticism is unjustified because neither a trade deficit nor the moving of manufacturing to Mexico mean that the United States as a whole is in worst condition than before NAFTA. In fact, most economists agree that free trade is a good thing for the economy as a whole, and that most people benefit from the lower costs and specialization that trade brings about.
The problem lies then, in the people who lose their jobs: formerly unionized manufacturing workers from the Rust Belt, for example. These people need to be helped with government assitance, both in terms of welfare, and training, so that they can find new jobs and make ends meet in the meanwhile.
Answer:
Hierarchy, Information Systems
Explanation:
The pyramid model of four level in an organization is based on and is depends on the various levels of the hierarchy systems or management in the organization.
These four level is of different types of the Information System in the organization.
1. First level : It is also known as Strategic level or Executive Information Systems.
2. Second level : It is also know as Management Level or the Decision Support Systems.
3. Third level : Another term is Management Level or Management Information Systems.
4. Fourth Level : It is called the Operational Level or the Transaction Processing Systems.
