Problem 3 Accounting Chapter 21 Problem 3 A firm’s current balance sheet is as follows: Assets = $100 Debt = $10 Equity = $90 A. What is the firm’s weighted-average cost of capital at various combinations of debt and equity‚ given the following information? Debt/Assets | After-tax Cost of Debt | Cost of Equity | Cost of Capital | 0% | 8% | 12% | 12.00% | 10% | 8% | 12% | 11.60% | 20% | 8% | 12% | 11.20% | 30% | 8% | 13% | 11.50% | 40% | 9% | 14% | 12.00% | 50%
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Balance Sheets A general ledger is the foundation of a company’s financial records‚ as they constitute the central summary of a company’s financial system. Every transaction is recorded through the general ledger. These records remain as a permanent track of the history of all financial transactions since the opening day of the company (Business Town‚ n.d.). The purpose of any business is to increase the owner’s equity through solid revenues. These revenues increase assets or proceed to decrease
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Revised 2005 PC-1 FORM GOVERNMENT OF PAKISTAN PLANNING COMMISSION PROFORMA FOR DEVELOPMENT PROJECTS (SOCIAL SECTORS) • Education‚ Training and Manpower • Health‚ Nutrition‚ Family Planning & Social Welfare • Science & Technology • Water Supply & Sewerage • Culture‚ Sports‚ Tourism & Youth
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Journal Entries Example Company A was incorporated on January 1‚ 2010 with an initial capital of 5‚000 shares of common stock having $20 par value. During the first month of its operations‚ the company engaged in following transactions: Date Transaction Jan 2 An amount of $36‚000 was paid as advance rent for three months. Jan 3 Paid $60‚000 cash on the purchase of equipment costing $80‚000. The remaining amount was recognized as a one year note payable with interest rate of 9%. Jan 4 Purchased office
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normal invoice in not being a demand or request for payment. A proforma invoice is a quote in an invoice format that may be required by the buyer to apply for an import license‚ contract for pre-shipment inspection‚ open a letter of credit or arrange for transfer of hard currency. It may not be a required shipping document‚ but it can provide detailed information that buyers need in order to legally import the product. Proforma invoices basically contain much of the same information as the formal
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through neglect or fraudulent activity compromise a patient’s personal health information. Channel 13 in Indiana did an investigation on pharmacies throughout our nation which discarded prescription labels‚ pill bottles‚ and patient information sheets with patient’s personal information into their unsecured dumpsters around Boston‚ Chicago‚ Cleveland‚ Dallas‚ Denver‚ Detroit‚ Miami‚ Louisville‚ Philadelphia‚ and Phoenix. When prescriptions are dropped off‚ electronically transferred‚ or called
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Course Pro Forma Program Ijazah Sarjana Muda Perguruan Dengan Kepujian ( Professional Studies) Name of Course Culture and Learning Budaya dan Pembelajaran Course Code EDU3106 Credit 3(3+0) Student Learning Time 120 hours Medium of Instruction Bahasa Melayu/English Language Prerequisite Nil Semester Fifth Learning Outcomes Synopsis 1. Explain concepts of culture and ethnic groups in Malaysia. 2. Explain concept of inequality in educational
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All Blocks Maximum Marks: 100 Attempt all the questions. 1. 2. What do you mean by accounting concepts? What are their characteristics? Explain these concepts with examples. (20) (a) There was a difference of Rs. 525 in a Trial Balance. It has been transferred to credit side of Suspense A/c. Later on following errors were discovered. Pass the rectifying entries and prepare Suspense A/c:i. ii. iii. iv. An amount of Rs. 375 has been posted on the debit side of commission
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projected or forecast of operating results and balance sheet‚ and statement of cash flows. The company XYZ Company Inc. is planning to expand their company in the next five years. This paper will review and discuss XYZ’s Company’s five year plan to expand to their organization. The XYZ Companies pro forma income statement is projected for the next five years which accounts for a 10% increase in gross sales for each of the five years. Financial managers use Proforma statements to assist financial managers
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1. Suppose the Federal Reserve instructs the Trading Desk to purchase $1 billion of securities. Show result of this transaction on the balance sheets of the Federal Reserve System and commercial banks. > Change in Federal Reserve’s Balance Sheet Assets Liabilities Securities + $1 billion
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