b. calculates an average unit cost by dividing the total cost of goods available for sale by the total units of goods available for sale.
c. calculates an average unit cost by adding the total cost of goods available for sale to the total units of goods available for sale.
d. none of the above
The weighted average method is used to assign the average cost of production to a product. Weighted average costing is commonly used in situations where:
Inventory items are so intermingled that it is impossible to assign a specific cost to an individual unit.The accounting system is not sufficiently sophisticated to track FIFO or LIFO inventory layers.Inventory items are so commoditized (i.e., identical to each other) that there is no way to assign a cost to an individual unit.
Credit cards typically charge the highest interest rates.
The payment method that typically charges the highest interest rates is credit cards. Credit cards can have very high-interest rates, typically ranging from 15% to 25%. This means that if you carry a balance on your credit card, you could end up paying a significant amount of interest.
For example, if you have a credit card with an interest rate of 20% and you have a balance of $1,000, you would be charged $200 in interest over a year if you don't pay off the balance.
It's important to be aware of the interest rates associated with different payment methods and make sure to pay off credit card balances as soon as possible to avoid costly interest charges.
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Answer:
1.103%
Explanation:
Data provided in the question:
Market debt-equity ratio = 0.65
Corporate tax rate = 40%
Interest on paid its debt = 7%
Now,
Debt ÷ Equity = 0.65
or
Debt = 0.65 × Equity
Weight of Debt = Debt ÷ (Debt + Equity)
or
= ( 0.65 × Equity ) ÷ ( 0.65 × Equity + Equity )
= 0.65 ÷ 1.65
= 0.3939
also,
Tax shield = Corporate tax rate × Interest paid on its debt
= 0.40 × 0.07
= 0.028
= 2.8%
Therefore,
The interest tax shield from its debt lowers Summit's WACC by
= Weight of Debt × Tax shield
= 0.3939 × 2.8%
= 1.103%
The interest tax shield from Summit Builders' debt, given a debt-equity ratio of 0.65, the interest rate of 7%, and the tax rate of 40%, lowers its WACC by 1.82%.
The Interest Tax Shield from debt is the reduction in tax expense achieved by offsetting interest expenses on debt against taxable income. The formula for calculating interest tax shield is Interest Paid * Tax Rate.
In the context of this question, the interest paid can be calculated as the product of the debt-equity ratio and the interest rate on the debt. Using the provided information, the calculation would be as follows:
So, the interest tax shield from Summit's debt lowers its Weighted Average Cost of Capital (WACC) by 1.82%.
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Dear Casey, Jonas is the answer.
Simone can address her cover letter like Dear Casey Jonas and also if she is unsure of the employer's gender.
Further explanation:
Cover letter:
Address of a cover letter:
Thus,a cover letter can be addressed as Dear Casey Jonas, if Simone is unsure of the employer’s gender.
Learn more:
1. Learn more about cover letter:
2. Learn more about thank you letter:
3. Learn more about cover letter:
Answer details:
Grade: High School
Subject: Business Studies
Chapter: Human Resource Management
Keywords:Simone is writing a cover letter to Casey Jones, and is unsure of the employer’s gender, how should she address her letter, introduction, unprofessional.