Which of the following statements is correct?
A. The weighted average cost of capital is calculated on a before-tax basis.
B. The weights of debt and equity should be based on the balance sheet because this is the most accurate assessment of the valuation.
C. An increase in the market risk premium is likely to increase the weighted average cost of capital.
D. All of these choices are correct.
Answer: C
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Narrative 9-2Use the information below to solve the following problems: Tax Rate Wage Base Social security6.2% $128,400 Medicare1.45% no limit FUTA.6% $7,000 SUTA5.4% $7,000 ? Refer to Narrative 9-2. Solomon Plastics employs 272 workers and has a gross payroll of $186,500.00 per week. Fringe benefits are 4 3/4% of gross payroll for sick days and maternity leaves, 8.2% for health insurance, 3.6% for the retirement fund, and $28.75 per employee for a stock purchase plan. a.What is the company's weekly cost of fringe benefits?b.What percentage of the payroll does this represent? (Round to the nearest hundredth of a percent)
What will be an ideal response?
An incremental innovation ______.
A. increases the scope of an existing innovation B. increases its impact over the life of the product C. is an improvement to an existing product D. all of these
A company exchanged its used machine for a new machine in a transaction that had commercial substance. The old machine cost $68,000, and the new one had a cash price of $95,000. The company had taken $59,000 depreciation on the old machine and was allowed a $2,500 trade-in allowance and the balance of $92,500 was paid in cash. What gain or loss should be recorded on the exchange?
What will be an ideal response?
Resources that a firm owns are classified as assets.
Answer the following statement true (T) or false (F)