Use the financial statements (first tab) and other information (second tab) for Nutsy Inc. (Links to an external site.) to answer the following questions regarding the 2020 Statement of Cash Flows. What is the total amount of Cash Provided (Used) by Financing Activities

Answers

Answer 1

Answer: Hello your question is Open ended and lacks the link to an external site hence I will provide a general solution wherein you can plugin the values you have

answer : Net cash Flow =   ∑ x + y

Explanation:

The total amount of cash provided by the Financing Activities can be determined using the proxy table shown below

 Particulars                                                              Amount

Cash received from sales of assets                            x

Cash paid for purchase of assets                                y

Net cash flow provided by Financial activities         ∑ x + y


Related Questions

The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts.
a. True
b. False

Answers

Answer:

a. True

Explanation:

In the case when there is a delivery of an asset so it would be very rare that it should be made in the forward contract as the delivery of an assets should be made in the future contract. As the forward contract settles at the time when the agreement is closed while the future contract deals with the terms and conditions related to the trading

So the given statement is true

When suppliers collaborate with the firm overall performance has been known to improve up to _________

Answers

Hi, you've asked an incomplete question. Answered from a general business perspective.

Explanation:

Note, a firm may measure its overall performance using some of the metrics below:

amount of sales in dollarsthe total cost of production,production capacity, etc.

Only when the firm's suppliers are reliable, affordable, and efficient, would the firm be able to meet their product demand.

A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake

Answers

Answer:

the cash flow from operation after fixing the mistake is $20

Explanation:

The computation of the cash flow from operation after fixing the mistake is as follows;

Cash flow from operations $70

Less; Depreciation expense -$100

Add: Depreciation expense $50

Net Cash flow from operations $20

Hence, the cash flow from operation after fixing the mistake is $20

The same is to be considered and relevant

Su Industries has international subsidiaries in Asia. These subsidiaries enter into transactions in both the US dollar and local currencies. During the year, Su Industries reported a remeasurement loss of $55,000 and a translation gain of $36,000. As a result of these conversions, how much would Su Industries report in accumulated other comprehensive income (AOCI) at year end

Answers

Answer: Increase / Gain of $36,000

Explanation:

Remeasurement loss, which arises from conversions of the various currencies used by the company to a functional currency, goes to the Income statement and is subtracted from the Net income.

Translation gains on the other hand, are added to the Other Comprehensive income.

The other comprehensive income will therefore increase by the translation gain of $36,000.

g Suppose a bond is priced at $1035, has 12 years remaining until maturity, and has a 12% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)

Answers

Answer:

$10

Explanation:

As the bond is priced at $1035, the par value is $1000.

Calculation of the amount of the next interest payment

= Par value * Coupon rate/12

= $1000 * 12%/12

= $1000 * 1%

= $10

So, the amount of the next interest payment is $10.

Four thousand bonds with a face value of $1,000 each, are sold at 104. The entry to record the issuance is:____.
A. Cash 4,080,000
Bonds Payable 4,080,000
B. Cash 4,080,000
Premium on Bonds Payable 80,000
C. Bonds Payable 4,000,000
Cash 4,080,000
D. Discount on Bonds Payable 80,000
Bonds Payable 4,000,000
E. Cash 4,000,000
Premium on Bonds Payable 80,000
Bonds Payable 4,080,000

Answers

Answer and Explanation:

The journal entry to record the issuance is given below:

Cash (4000 × 1000 × 104%) Dr. $4,160,000

        To Premium on Bonds Payable $160,000

        To Bonds Payable (4000 × 1000) $4,000,000

(being the issuance of the bond is recorded)

Here the cash is debited as it increased the assets, and the rest of the two accounts are credited as it increased the liabilities

Brief Exercise 18-5 a1-a2 Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 19,960 $46,020 August 35,488 53,232 September 39,924 60,995 October 24,398 48,965 November 44,360 82,620 December 42,142 68,758 (a1) Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit

Answers

Answer:

A.$1.50 per units

B. $16,080

Explanation:

Computation for the variable cost per unit using the high-low method.

Using this formula

Variable cost per unit= High activity cost -Low Activity cost /High activity cost -Low Activity cost

Let plug in the formula

Variable cost per unit=(82,620-$46,020)/(44,360-19,960)

Variable cost per unit=$36,600/$24,400

Variable cost per unit= $1.5 per units

Therefore the variable cost per unit using the high-low method is $1.50 per units

B. Computation for the fixed cost element unit using the high-low method.

Fixed cost element=82,620-(1.50*44,360)

Fixed cost element=82,620-66,540

Fixed cost element=$16,080

Therefore the fixed cost element unit using the high-low method is $16,080

If a person owes several people money, that person can give each of the creditors part of the total owed. If this arrangement is agreed to by all creditors, it is called

Answers

Answer:

a composition of creditors

Explanation:

A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.

Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.

A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.

This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.

Hence, lenders look at the credit score of a loan applicant so as to ensure that he or she is financially responsible and would be able to repay the loan at the agreed upon date.

A composition of creditors can be defined as a type of arrangement in which an individual owing (debtor) several people money gives each of the creditors part of the total amount of money being owed. Also, for this arrangement to be valid, it must be agreed to by all creditors.

Charging a license fee for access to a fishery will ... a)              result in no change in total harvest levels. b)             result in harvest levels equal to the maximum sustained yield. c)              reduce harvest levels towards the economic optimum. d)             result in harvest levels at the open-access equilibrium. e)              result in increased entry into the fishery.

Answers

Answer:

c) reduce harvest levels towards the economic optimum.

Explanation:

An individual transfer rights (ITR) system can be defined as a system in which the government of a particular country gives each fishing vessel or owner a specific percentage of the total fish allowable to be caught each year.

Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.

When a license fee is charged by a licensor for access to a fishery, it will significantly reduce harvest levels towards the economic optimum, where neither a smaller nor a larger factor would yield any form of advantage.

This ultimately implies that, a license fee would serve as a limiting factor that prevents or limits the number of people going into fish farming and as a result of this, the total amount of fish that would be harvested would be smaller.

Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $179,850. The equipment will have an initial cost of $545,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $34,000, what is the accounting rate of return

Answers

Answer:

So, accounting rate of return = 33 %

Explanation:

given data

net income after tax = $179,850

initial cost = $545,000

time = 7 year

salvage value = $34,000

we will get here  the accounting rate of return

solution

as we know that accounting rate of return is express as

accounting rate of return = Net income ÷ initial investment    .................1

put here value and we get

accounting rate of return = [tex]\frac{179850}{545000}[/tex]  

So, accounting rate of return = 33 %

Explain where each of the following items would appear on a multiple-step income statement.

a. Gain on disposal of plant assets
b. Cost of goods sold
c. Depreciation expense
d. Sales returns and allowances

Answers

Answer:

a. Gain on disposal of plant assets will appear under Other Revenues and Gains.

b. Cost of goods sold will still appear under Cost of Goods Sold.

c. Depreciation expense will appear under Operating Expense.

d. Sales returns and allowances will appear under Sales Revenue.

Explanation:

A multiple-step income statement is an income statement in which the net income reported on the bottom line is calculated using multiple subtractions.

Each of the following items would appear on a multiple-step income statement as explained below.

a. Gain on disposal of plant assets

This will appear under Other Revenues and Gains.

Other Revenues and Gains are revenues from auxiliary operations and gains unrelated to the company's operations, which are reported in the non-operating activities section of the income statement. The following are some of them: Interest from receivable, marketable securities, Gains on Disposal of Plant Assets, etc.

b. Cost of goods sold

This will still appear under Cost of Goods Sold.

Cost of Goods Sold are the direct costs of manufacturing the commodities that a business sells. This figure covers the direct cost of the materials and labor that went into making the good. It does not include indirect costs like distribution and sales force expenditures.

c. Depreciation expense

This will appear under Operating Expense.

Operating Expense is a cost that a company incurs as part of its routine operations. Examples of this include rent, marketing, payroll, insurance, monies allocated for research and development, depreciation expense, and among others.

d. Sales returns and allowances

These will appear under Sales Revenue.

This is the amount of money a corporation makes through selling things or providing services minus sales returns allowances and sales discounts.

Cheryl is single, has one child (age six), and files as head of household during 2020. Her salary for the year is $19,500. She qualifies for an earned income credit of the following amount. a.$3,584. b.$3,557. c.$3,530. d.$0.

Answers

Answer: $3,557

Explanation:

Maximum amount of credit for 2020 is $3,584.

The income credit is calculated by:

= Maximum amount - (Earnings for the year - Minimum phase out range for single person with one child) * phase out percentage.

= 3,584 - (19,500 - 19,330) * 15.98%

= $3,557

A large scale pharmaceutical manufacturing company estimates, based on a shipping fee of $1000 per order, that they can optimally balance inventory holding costs and shipping costs for one of their frequently used chemicals if they receive shipments of this chemical at an average rate of 4.5 times per year. The annual demand is 6500 tons. Suppose that they wish to instead receive shipments every month in order to reduce the working capital requirements of holding inventory.
(a) What shipping fee should they negotiate with the supplier?
(b) Based on this new shipping fee, what would be the reduction in annual holding cost as compared to their prior situation? Assume that they operate optimally.

Answers

Answer:

a. The shipping fee that they should negotiate with the supplier is:

= $375 per shipment

b. Based on this new shipping fee, the reduction in annual holding cost will be 37.5%

Explanation:

a) Data and Calculations:

Shipping fee per order = $1,000

Average shipments received per year = 4.5 times

Total shipping fee per year = $4,500 (4.5 * $1,000)

Annual demand = 6,500 tons

If shipment is changed to 12 times per year, the shipping fee that they should negotiate with the supplier = $4,500/12 = $375 per shipment

Holding cost will reduce by 37.5% (4.5/12 * 100)

Preventive maintenance of a system involves ________. Select one: a. making enhancements to improve processing performance or interface usability b. making changes to an information system to repair flaws in the design c. making changes to a system to reduce the chance of future system failure d. making changes to an information system to accommodate changing business needs e. adding desired, but not necessarily required, system features

Answers

Answer:

c

Explanation:

In a perfectly competitive market, all producers sellidentical goods or services. Additionally, there aremany buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricemakers . True or False: The market for public utilities, such as gas and electricity, exhibits the two primary characteristics that define perfectly competitive markets. True False

Answers

Answer:

1.  True

2. False

Explanation:

1. Indeed, we can assert that for a market to be termed as perfectly competitive it must have not just one seller or buyer but many sellers and buyers. Hence, as for buyers, they are able to bargain the price they are willing to buy, while sellers are also set the price for their goods/products.

2. Since in most economies the price of public utilities, such as gas and electricity, are determined by the government not the average seller/buyer, it would be false to say that they exhibited characteristics that define perfectly competitive markets.

65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $900, what is the required journal entry to accrue compensated absences

Answers

Answer: Debit Salaries and Wages Expense $117000

Credit Salaries and Wages Payable $117000

Explanation:

Based on the information given in the question, the required journal entry to accrue compensated absences will be as follows:

First, we need to know the amount of the compensated absence which will be:

= 65 employees × $900 × 2 Weeks vacation

= $117000

Therefore, the journal entry is:

Debit Salaries and Wages Expense $117000

Credit Salaries and Wages Payable $117000

In a nation with excessive population growth and unskilled labor, the production possibilities curve tends to: Group of answer choices Shift to an increased level Shift to the right Increase and then decrease Remain unchanged Reach an unattainable point

Answers

Answer:

This question is incomplete, the options are wrong. The correct options are the following:

a) Reach the unattainable point.

b) Increase and then decrease.

c) Remain unchanged.

d) Shift to a point on the graph which reflects growth.

e) Increase at a decreasing rate.

And the correct answer is the option D: Shift to a point on the graph which reflects growth.

Explanation:

To begin with, the name of "Production Possibilities Curve" in the field of microeconomics refers to the graphic that shows the maximum quantity of a combination of goods and services that a certain economy can produce in a determine period of time given a state of technology. The line that represents the frontier of the possibilities in the graphic can be reach if some situations happens like for example the population grow constantly.

The production potential curves show the highest amount of a variety of goods and commodities that a particular economy can create in a resolute duration given a condition of technology.

If the population rises regularly then the graph can reach its ultimate frontier.

The correct answer is:

Option D: Shift to a point on the graph which reflects growth.

This can be explained as:

There is a rise in the inhabitants as well as the unskilled workers this will redirect the production angle towards the end where the transition is reflected.

Due to expanded population production from experienced and trained labors can raise the production pace.

Therefore, the angle will shift towards the point reflecting the change.

To learn more about the Production Possibilities Curve follow the link:

https://brainly.com/question/5084989

What do you think happens to the price of an object as it goes through a large number of intermediaries?

Answers

Because the manufacturer is also the entity selling the good or service, prices tend to be lower in a direct distribution channel. Indirect channels, on the other hand, generally see higher prices because of the number of intermediaries involved. The more there are, the higher the price.

Unearned revenue: the company collected 24,000 rent in advanced on September 1, debiting cash and crediting unearned rent revenue. The tenant was paying 12 months rent in advance and occupancy began september 1.

Answers

Answer:true

Explanation:

true

Slinky established a petty cash fund for $400. Slinky purchased 50 units of inventory from a supplier on credit. The goods cost $40 each and the credit terms were 5/10, n/30. The shipping costs, paid in cash by Slinky, were $100 under the terms FOB Shipping. Slinky received the inventory on July 3rd. Slinky returned 5 units of inventory from the July 3rd transaction to the supplier. Slinky sold 15 of the units purchased on July 3rd for $55 each to customers for cash. Slinky accepted a return of one unit of inventory from a July 6th customer for a cash refund. Slinky paid the supplier for one-half of the inventory purchased on July 3rd. Be sure to account for any returns and/or purchase discounts. Slinky used $40 out of petty cash to pay for coffee meeting (coffee expense). Slinky purchased 10 units of inventory from a supplier on credit. The goods cost $25 each and no credit terms were granted. The shipping costs were $50 under the terms FOB destination and Slinky received the inventory on November 2nd Slinky paid the remaining balance owed to the supplier from the July 3rd transaction. Slinky replenished petty cash.

Required:
Prepare Journal Entries for July

Answers

Answer:the answer is

Explanation:

i have    400 and the 50 units

Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in earnings per share (EPS) over the 10-year period?

Answers

Answer:

they will earn 5$ eps over the 10 year period

Explanation:

hope it helps

The wages paid to thoose who devote theirtime to supervision or to work of a general nature in the manufacturing process are included in the indirect cost of the factory operation true
or false

Answers

Answer:

sa

Explanation:

Assume that interest rate parity (IRP) exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $0.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract

Answers

Answer:

US $5,784,000

Explanation:

As per interest rate parity, forward rate = Spot rate*(1+Interest rate U.S.)/(1+interest rate Australia)

= 0.60*(1.07)/(1.11)

= 0.5784 /A$

Australian Dollars required in one year = 10,000,000

U.S. Dollars required = 10,000,000 * 0.5784 /A$

U.S. Dollars required = $5,784,000

So, the number of U.S. dollars you will need in one year to fulfill the forward contract is 5,784,000.

Reineke Company's chart of accounts includes the following selected accounts.

101 Cash 201 Account payable
120 Inventory 306 Owner's drawings
130 Prepaid insurance 505 Cost of Goods sold
157 Equipment

On October 1, the accounts payable ledger of Sheridan Company showed the following balances: Uggla Company $2,500, Orr Co. $2,510, Rosenthal Co. $1,770, and Clevenger Company $3,750. The October transactions involving the payment of cash were as follows.

Oct. 1 Purchased merchandise, check no. 63, $310.
3 Purchased equipment, check no. 64, $840.
5 Paid Uggla Company balance due of $2,500, less 2% discount, check no. 65, $2,450.00.
10 Purchased merchandise, check no. 66, $2,270.
15 Paid Rosenthal Co. balance due of $1,770, check no. 67.
16 C. Sheridan, the owner, pays his personal insurance premium of $450, check no. 68.
19 Paid Orr Co. in full for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.
29 Paid Clevenger Company in full for invoice no. 264, $2,580, check no. 70.

Required:
Journalize the transactions above.

Answers

Answer:

Reineke Company

Journal Entries:

Oct. 1 Debit 120 Inventory $310

Credit 101 Cash $310

To record the purchase of merchandise via check no. 63

Oct. 3 Debit 157 Equipment, $840

Credit 101 Cash $840

To record the purchase of equipment via check no. 64

Oct. 5 Debit 201 Accounts payable (Uggla Company) $2,500

Credit Cash $2,450

Credit Cash Discounts $50

To record payment on account, less 2% discount, check no. 65

Oct. 10 Debit 120 Inventory $2,270

Credit 101 Cash $2,270

To record the purchase of inventory via check no. 66.

Oct. 15 Debit 201 Accounts payable (Rosenthal Co.) $1,770

Credit 101 Cash $1,770

To record the payment on account by check no. 67.

Oct. 16 Debit 306 Owner's Drawings $450

Credit 101 Cash $450

To record C. Sheridan's payment for his personal insurance premium of $450, check no. 68.

Oct. 19 Debit 201 Accounts payable (Orr Co.) $2,200

Credit 101 Cash $2,156

Credit Cash Discounts $44

To record full payment for invoice no. 610, less 2% cash discount, using check no. 69.

Oct. 29 Debit 201 Accounts payable (Clevenger Company) $2,580

Credit 101 Cash $2,580

To record full payment for invoice no. 264, by check no. 70.

Explanation:

a) Data and Calculations:

Chart of Accounts:

101 Cash  

120 Inventory

130 Prepaid insurance

157 Equipment

201 Account payable

306 Owner's drawings

505 Cost of Goods sold

Accounts Payable balances:

Uggla Company $2,500

Orr Co. $2,510

Rosenthal Co. $1,770

Clevenger Company $3,750

Transactions Analysis:

Oct. 1 120 Inventory $310 101 Cash $310 check no. 63

Oct. 3 157 Equipment, $840 101 Cash $840 check no. 64

Oct. 5 201 Accounts payable (Uggla Company) $2,500 101 Cash $2,450 Cash Discounts $50, less 2% discount, check no. 65

Oct. 10 120 Inventory $2,270 101 Cash $2,270 check no. 66, $2,270.

Oct. 15 201 Accounts payable (Rosenthal Co.) $1,770 101 Cash $1,770, check no. 67.

Oct. 16 306 Owner's Drawings $450 101 Cash $450 for his personal insurance premium of $450, check no. 68.

Oct. 19 201 Accounts payable (Orr Co.) $2,200 101 Cash $2,156 Cash Discounts $44 for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.

Oct. 29 201 Accounts payable (Clevenger Company) $2,580 101 Cash $2,580 for invoice no. 264, $2,580, check no. 70.

1) If you believe in the reversal effect, you should buy stocks that performed well last period. (10points) a. True. b. False

Answers

Answer:

False.

Explanation:

The reversal effect is a theory in the field of business and investment that establishes that markets move in an oscillating way, that is, with constant ups and downs, which occur in reverse: if a share rises in a day set of days, the most logical and expected thing is that it comes down proportionally.

Thus, according to this theory, the performance of a market instrument is determined by its ability to maintain value at times of decline.

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $21,600 for March and $70,700 for April. What are the budgeted cash receipts from sales on account for April

Answers

Answer:

Total cash collection April= $33,875

Explanation:

Giving the following information:

Collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.

Sales on account:

Marc=$21,600

April= $70,700

Cash collection April:

Sales in account from March= (21,600*0.75)= 16,200

Sales in account from April= (70,700*0.25)= 17,675

Total cash collection April= $33,875

Central Park Inc. is a company that sells women's clothing. It recently shut down its physical store and is operating as an app-based store now. The app allows users to access the store's products anytime and anywhere using their cell phones, and it also has features that allow users to compare the prices of similar products across different online stores. This scenario exemplifies _______.

Answers

Answer:

M-commerce

Explanation:

Since in the given situation it is mentioned that Central Park Inc sells the women clothing and currently they shut down the physical store and they are operated now through app based. With this feature, anyone could access anywhere via using the mobile phones also at the same time the customer compared the prices

So this situation represent the mobile commerce or M -commerce as the people can access this from anywhere at any time, it is easy to use also it save the cost and time

The objectives of competition policy​

Answers

Answer:

rticle 1] This Act, by prohibiting private monopolization, unreasonable restraint of trade and unfair trade practices, by preventing excessive concentration of economic power and by eliminating unreasonable restraint on production, sale, price, technology and the like, and all other unjust restriction of business

Sun Co. was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuances during the entire year of construction: $6,000,000 face value, 8% interest $8,000,000 face value, 9% interest None of the borrowings were specified for the construction of the qualified fixed asset. Average expenditures for the year were $1,000,000. What interest rate should Sun use to calculate capitalized interest on the construction

Answers

Answer:

the interest rate that should be determined the capitalized interest is 8.57%

Explanation:

The computation of the interest rate that should be determined the capitalized interest is shown below;

= $6,000,000 ÷ ($6,000,000 + $8,000,000) × 0.08 + $8,000,000 ÷  ($6,000,000 + $8,000,000) × 0.09

= 0.0857

= 8.57%

Hence, the interest rate that should be determined the capitalized interest is 8.57%

The same would be considered

You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 percent coupon bonds outstanding, $1,000 par value, 29 years to maturity, selling for 107 percent of par; the bonds make semiannual payments. Common stock: 470,000 shares outstanding, selling for $65 per share; the beta is 1.16. Preferred stock: 20,500 shares of 4.1 percent preferred stock outstanding, currently selling for $86 per share. The par value is $100 per share. Market: 7 percent market risk premium and 5.2 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000  + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

= 5.80%

Now  

Cost of common stock is

= 5.2% + 1.16 × 7%

= 13.32%

cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally  

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1  - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

Other Questions
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