Firms HD and LD are identical except for their use of debt and the interest rates they pay--HD has more debt and thus must pay a higher interest rate. Based on the data given below, how much higher or lower will HD's ROE be versus that of LD, i.e., what is ROEHD - ROELD? Do not round your intermediate calculations. Applicable to Both Firms Firm HD's Data Firm LD's DataCapital$3,000,000 wd70% wd20%EBIT$595,000 Int. rate12% Int. rate10%Tax rate35% ?
A. 11.31%
B. 13.37%
C. 8.74%
D. 10.28%
E. 10.80%
Answer: D
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Bonds Payable is reported as a long-term liability on the corporation's balance sheet
a. True b. False Indicate whether the statement is true or false
Atoka Manufacturing uses a standard cost system. Standards for direct materials are as follows:
Actual purchases of direct materials for the current month are 10,000 pounds for $48,000. Planned and actual production for the month is 3000 units. Atoka has issued 10,000 pounds of direct materials to production. The journal entry to record this transaction is ________.
A) a debit to Work-in-Process Inventory for $28,800, a credit to Raw Materials Inventory for $30,000, and a debit to Direct Materials Efficiency Variance for $1200
B) a debit to Work-in-Process Inventory for $28,800, a credit to Raw Materials Inventory for $50,000, and a debit to Direct Materials Efficiency Variance for $21,200
C) a debit to Work-in-Process Inventory for $30,000, a credit to Raw Materials Inventory for $50,000, and a debit to Direct Materials Efficiency Variance for $20,000
D) a debit to Work-in-Process Inventory for $50,000, a credit to Raw Materials Inventory for $48,000, and a credit to Direct Materials Efficiency Variance for $2000
A competitive environment includes all the following EXCEPT
A. new entrants. B. suppliers. C. rivals. D. subordinates.
Two notions serve as the basis for all torts: wrongs and compensation
Indicate whether the statement is true or false