ramer and knox began a partnership by investing $86,000 and $129,000, respectively. during its first year, the partnership earned $250,000. prepare calculations showing how the $250,000 income is allocated under each separate plan for sharing income and loss.

Answers

Answer 1

When the partners failed to agree on a method to share income, ramer will get  $112,500, Knox will get $112,500. When the partners agreed to split income and loss in proportion to their first investments, ramer will get $90,000, Knox will get $135,000.

A partnership may be defined as a process where parties, called as business partners, able to cooperate to advance their mutual interests.

When the partners failed to agree on a method to share income.

The income is shared similarly.

Ramer: $225,000×50% = $112,500

Knox: $225,000×50% = $112,500

When the partners agreed to split income and loss in proportion to their first investments.

Total capital  =$86,000 + $129,000

Total capital= $215,000

Ramer: $225,000 x $86,000/$215,000 = $90,000

Knox: $225,000 x $129,000 /$215,000 = $135,000

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Related Questions

if a company issues a $1,000 bond with an interest rate of 2 percent and a maturity date of 2040, how much interest does the company pay and for how long?

Answers

The company pays an interest of $20 per year until a specific date in 2040 when the bond must be paid in full.

Bond may be defined as a type of agreement-based investment, which is made by any investor by lending money to a borrower at a specific rate of interest for a specific time period. The investor earns extra amount known as interest on the bond and the borrower has to pay the same interest to the investor. According to the question

Face value of bonds payable = $1,000

Interest rate = 2%

Interest value = 0.02

Maturity date = not specified

Annual interest expense = Face value × Interest value

Annual interest expense = $1000 × 0.02

Annual interest expense = $20 per year

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g on november 1, alan company signed a 120-day, 9% note payable, with a face value of $66,000. alan made the appropriate year-end accrual. what is the journal entry as of march 1 to record the payment of the note assuming no reversing entry was made?

Answers

The journal entry as of march 1 are-

Debit Notes Payable $24,000; debit Interest Expense $360; credit Cash $24,720 ; debit Interest Payable $360.

Define the term year-end accrual?Adjustments for income that have already earned but has not yet been posted here to general ledger accounts and adjustments for expenses that have already incurred but have not yet been posted to the ledger accounts are referred to as accruals. Adjusting entries known as year-end accruals are made to ensure that expenses and revenues are reported in the appropriate fiscal year.

Interest Expense= Principal × Interest Rate × Time

Interest Expense= $66,000 × 0.09 × 60/360;

Interest Payable= $990 (debit to Interest Expense)

Interest Payable= Principal × Interest Rate × Time

Interest Payable= $66,000 × 0.09 × 60/360;

Interest Payable= $990 (debit to Interest Payable)

Maturity Value= Principal + Interest Expense

Maturity Value= $66,000 + 2×$990 = $67,980.

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____________________ interviews of employees who are leaving the firm can identify problem areas within the company that need to be taken care of quickly

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Exit interviews of employees who are leaving the firm can identify problem areas within the company that needs to be taken care of quickly.

Employment is a relationship between two parties who manage work performance for their benefit. Normally, one party, the employer (which may be a corporation, non-profit organization, cooperative, or other organization), will pay the other work under the contract in return for performing an assigned job. pay a worker Compensation paid by the hour, on a piecework basis, or as an annual salary, depending on the type of work the worker performs, the prevailing conditions of the sector, and the bargaining power between the parties.

Employees in some sectors may receive tips, bonuses or stock options. Depending on the type of employment, workers may receive benefits in addition to their wages. Benefits may include health insurance, housing, and disability insurance. Employment is usually regulated by labor laws, organizations or legal contracts.

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which method of performance measurement compares employees in the group with each other to establish rankings?

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The method of performance measurement that compares employees in the group with each other to establish rankings is called a pair comparison method.

The different kinds of methods for performance measurement include:

forced-distribution methodsingle-ranking methodalternation-ranking methodpaired-comparison method

The manager must compare each individual to every other employee in the division or workgroup when using a paired comparison technique. Each employee is compared to one another, and the employee who performs better out of the two is awarded a score of 1. The scores are tallied after all the pairs have been compared.

Pairwise comparison, commonly referred to as paired comparison analysis, aids in determining the relative weight of several options. This makes deciding on the most significant issue to address or the best course of action simple.

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All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic planning process improves its decision making, EXCEPT:______.
Select one:
A. It can address potentially devastating threats.
B. It can exploit opportunities by incorporating them into its current business model.
C. It can use ERM as a process to manage unwanted variations from expectations.
D. It can eliminate risks to its business model.

Answers

All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic planning process improves its decision-making, EXCEPT It can eliminate risks to its business model.

A business model describes how an organization creates, delivers, or acquires value in an economic, social, cultural, or other context. The process of building and modifying business models, also called business model innovation, is part of business strategy.

The term business model describes a company's profit plan. Identify the products or services that the company plans to sell, the identified target markets, and the expected costs. Business models are important for both new and established companies.

In its simplest form, a business model provides information about an organization's target markets, the needs of those markets, and the role a company's products or services play in meeting those needs. Business model innovation describes the process by which an organization adapts its business model.

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Celestial seasonings produces specialty teas and sells them to food wholesalers. The wholesalers then sell these teas to supermarkets and grocery stores, which, in turn, sell them to consumers. This describes celestial seasonings’.

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The Celestial seasonings produces specialty teas and sells them to food wholesalers. This is an American tea producer company.

The wholesaler purchase very large quantities of goods directly from producers or from the other wholesalers. By purchasing large quantities, wholesalers are able to secure significantly lower price. So,

The wholesalers then sell these teas to supermarkets and grocery stores, which, in turn, sell them to consumers.

The Celestial Seasonings is an American tea company based in Boulder, Colorado, United States, that specializes in herbal teas properly called "tisanes", but also sells green, white, black, and chai teas.

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What product used a famous public relations stunt to have an attractive woman walking in public using it, claiming that it had health benefits as an appetite suppressant?.

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Dove used a famous public relations stunt to have an attractive woman walking in public using it, claiming that it had health benefits as an appetite suppressant.

What are some public relations examples?

"Public relations is a strategic communication process that creates relationships between organizations and their publics that are beneficial to both parties." The management of communication between an organization and its publics is another definition of public relations.

Press releases are used to disseminate the word in 7 Simple (Yet Brilliant) PR Techniques.

media outlets and local TV stations as a target.taking part in community and professional events.utilizing the social media networks.collaborating with influencers.generating some debate about your brand.

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when a supervisor takes money from one department's budget in order to give it to another department for a project they are working on, it is an example of .

Answers

Answer:

Which analyst position analyzes information using mathematical models to help business managers make decisions?

Budget Analyst

Management Analyst

Credit Analyst

Operations Research Analyst

Explanation:

When a supervisor takes money from one department's budget in order to give it to another department for a project they are working on, it is an example of power - over.

What do you mean by the Power over?

Since a person's ability to act is indicated by the term "power to," and their capacity to influence the behavior of others is indicated by the term "power over," they believe it is acceptable to assume that a person must have some form of power to have any corresponding power over.

Most of what we consider power is actually power over. Parents have the authority to set the curfew for their children, managers have the authority to set the quota for their workers, police have the authority to tell drivers when to pull over, and judges have the authority to set the fine.

Even the power the chair underneath me possesses is over. It has control over my body and can keep it standing and in place.

Therefore, when a supervisor takes money from one department's budget in order to give it to another department for a project they are working on, it is an example of power - over.

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The opening debt balance of company b is 18,230, and the repayment is scheduled for 2,150 per month at an annual interest rate of 4. 5%. The closing balance of debt at the end of the month is ______ and the interest payment is ______. Use the average debt balance to calculate the interest payment.

Answers

The closing balance of debt at the end of the month is $16080 and the interest payment is $64.33.

Within an organization, all the records of the expenses and the revenue should be maintained properly on a balance sheet. Also, the debt amount of the organization should be calculated and listed in the sheet. The formula for calculating the closing balance of debt at the end of the month and the interest payment is expressed as

Closing balance of debt at the end of the month = Opening balance of company A - Scheduled Repayment per month

Closing balance of debt at the end of the month = $18230 - $2150

Closing balance of debt at the end of the month = $16080

Now, the interest payment will be calculated as

Interest payment = Average Debt × Annual interest rate × 12 months

Interest payment = (($18230 + $16080) ÷ 2) × 0.045 ÷ 12  months

Interest payment = $64.33

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what type of error is the certified public accountant (cpa) most likely to discover when he/she examines all shipping reports dated in january of 20x1, shipped free on board (fob) shipping point, which were recorded in december of 20x0 as credit sales

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Accounts receivable are overstated at December 31, 20X0 is  type of error is the certified public accountant (cpa) most likely to discover when he/she examines all shipping reports .

Account receivable:

Accounts receivable relate to the money a company's guests owe for goods or services they've entered but not yet paid for. Accounts Receivable is the proceeds or payment which the company will admit from its guests who have bought its goods & services on credit. For illustration, when guests buy products on credit, the amount owed gets added to the accounts receivable.

What's the entry of account receivable?

An accounts receivable journal entry is the recording of an accounts receivable sale in the business's account records. It's an essential step in duly establishing this fiscal activity. Accounts receivable is an account term that refers to deals for which payment has not yet been entered.

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when a company sells one unit above the number required to break-even, the company's net operating income will .

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When a company sells one unit above the number required to break even, the company's net operating income will change from zero to a net operating profit.

Operating income refers to the regulated profit of a company however expenses of movement and devaluation are subtracted. Expenses of movement or operating expenses are merely the costs earned in order to hold an implausible story running. Operating income shows your trade's ability to create a bottom line from allure functional activities.

Operating profit is the total gains a guest creates from buying after paying off all operating expenses to a degree rent, attendant payroll, supplies, and stock costs. The operating profit figure forbids gains or deficits from interest, taxes, and investments.

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the capital structure of pendekanti products is 58 percent common stock, 2 percent preferred stock, and 40 percent debt. the firm maintains a dividend payout ratio of 24 percent, has a beta of 1.08, and has an income tax rate of 21 percent. given this information, which one of the following statements is accurate? multiple choice the aftertax cost of debt will be greater than the current yield to maturity on the company's outstanding bonds. the company's cost of preferred is most likely less than the company's actual cost of debt. the cost of equity is unaffected by a change in the company's tax rate. the cost of equity can be estimated only by using the capital asset pricing model. the weighted average cost of capital will remain constant as long as the company's capital structure remains constant.

Answers

The value of equity is the return that a corporation requires to decide if an funding meets capital return requirements.

Firms frequently use it as a capital budgeting threshold for the required price of return.

What is value of equity example?

For example, consider a enterprise that currently will pay a dividend of $0.30 per share every quarter ($1.20 per share annually) and trades at $30. If this company expects to enlarge its dividend with the aid of 5% per year, then its fee of fairness is 9% ($1.20 / $30) + 5% = 9%.

What is the fee of equity formula?

The components is: CoE = (Next Year's Dividends per Share/ Current Market Value of Stocks) + Growth Rate of Dividends

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when pepsico was considering entering the norwegian market with pepsi clear, they outsourced a research project to a norwegian market research firm to determine what percent of all norwegians held favorable opinions of the pepsi brand. in this case, pepsi is engaging in what type of research?

Answers

Pepsi explored entering the Norwegian market with Pepsi Clear. In this case, Pepsi is undertaking primary research.

What exactly is primary research?

Any form of research that you conduct yourself is considered primary research. Surveys, interviews, observations, and ethnographic research are some examples. Smart researcher understands how to use primary and secondary materials in their work and integrate them cohesively.

Conducting primary research is a valuable ability to learn because it can substantially enrich your secondary research in journals, periodicals, or books. You can also make it the focal point of your writing effort. Primary research is a wonderful ability to have because it can be applied in a variety of contexts such as business, personal, and academic.

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your customer purchased 1,000 shares of smallco stock at $10 a share. smallco pays no dividends. exactly one year later, the customer sold the shares for $12 a share. they realized a

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The customer realized a profit of $2000 by selling his shares at $12 each.

What do we mean by Shares?A share, which can also refer to shares of mutual funds, limited partnerships, and real estate investment trusts, is a unit of equity ownership in the capital stock of a firm in the financial markets. The term "share capital" describes all of an organization's shares.A share entitles the owner to an equal claim on the company's profits and losses.Equity shares and preference shares are the two main types of shares.

So, the amount of shared purchased:

1000 × 10

$10,000

The amount in which share is sold:

1000 × 12

12,000

Profit: 12000 - 10000 = $2000

Therefore, the customer realized a profit of $2000 by selling his shares at $12 each.

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a situation in which employees perceive that there is too narrow a difference between their compensation and that of employees in lower-rated jobs is known as: a. wage inversion b. the cpi effect c. wage-rate compression d. the inflation factor

Answers

Wage rate compression is a scenario where employees believe the gap between their salary and that of those in lower-rated positions is too small. ( Option A )

- More about wage-rate compression :

- Pay compression is a long-term compensation problem. When there is little compensation disparity amongst employees despite variations in their individual knowledge, skills, experiences, or talents, the situation is known as wage or salary compression.

- Due to the expense, many businesses choose not to modify market salaries for every employee. However, unfair pay practices do have negative effects. The obvious issue with pay compression is the detrimental effect it has on employee morale.

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Equifax, experian, and transunion are legally obligated to provide identical information.

Answers

The claim that Equifax, Experian, as well as TransUnion are required by law to provide the same information is untrue.

Define the term Equifax, experian, and transunion?

In the US, there are three main credit bureaus: Equifax, Experian, and TransUnion.

Equifax:

In 1899, Equifax was founded in Atlanta, Georgia. More than 800 million customers and 90 million enterprises from 24 different nations provide them with credit information on a global scale.

Experian

Experian was established in 1996, making it the newest of the three credit bureaus. They are based in Ireland that although they comprise one of the top three credit reporting bureaus in the United States.

TransUnion

TransUnion was founded in Chicago, Illinois, in 1968. They offer credit reports for more about 200 million people in the United States and roughly one billion people worldwide.

Thus, it is a false statement to say that Equifax, Experian, and TransUnion are required by law to provide the same information.

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the largest exporters of coffee to the united states are 1. singapore and myanmar. 2. mexico, indonesia, and guatemala. 3. brazil, colombia, and vietnam. 4. panama, honduras, and chile.

Answers

the largest exporters of coffee to the united states are MAXICO.

Mexico is the country that exports the most coffee to the US.

Mexican java The majority of coffee sent to the US  comes from Mexico, where Arabica beans are grown near the coast, in the southern states, and close to Guatemala's border.

More than 70 countries produce coffee, but the top 5 producers—Brazil, Vietnam, Colombia, Indonesia, and Ethiopia—account for the majority of the global output.

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Shall the act be approved which grants a state-wide exemption from all ad valorem taxes for certain equipment used by timber producers in the production or harvest of timber?.

Answers

Georgia produces the most timber of any state. Now the state is letting voters decide if timber producers should be given a break on taxes for their machines similar to the tax break for agriculture producers.

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an character or felony entity) by way of a governmental company so that you can fund authorities' spending and diverse public expenditures (local, neighborhood, or country wide),[2] and tax compliance refers to policy moves and man or woman behaviour aimed at making sure that taxpayers are paying the right amount of tax at the proper time and securing the correct tax allowances and tax reliefs.[3] the first regarded taxation befell in historical Egypt around 3000–2800 BC.[4] A failure to pay in a well timed way (non-compliance), at the side of evasion of or resistance to taxation, is punishable with the aid of regulation. Taxes consist of direct or oblique taxes and can be paid in money or as its exertions equivalent.

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what is the average variable cost of producing 6 gigaplots at jimmy's gigaplot factory?

Answers

The average total cost of producing 6 Giga plots at Jimmy's Giga plot factory is $22.17.

In economics, the average cost also referred to as the unit cost, is computed by dividing the total cost (TC) by the quantity of a good produced (the output Q): AC = TC/Q

The average cost has a significant impact on how businesses set their product prices. Businesses' sales of commodities are directly correlated with the size of the relevant market and the tactics used by rivals.

With cost on the vertical axis and quantity on the horizontal axis, an average cost curve can be drawn. These graphs frequently include display marginal costs, which are the costs of the last unit produced at each point, and, in the short run, indicate the slope of the curve of variable costs (and hence the first derivative of variable cost).

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bank a charges a 7.75 percent annual percentage rate and interest is due at the end of the year. bank b charges a 7 percent annual percentage rate and interest must be paid monthly. what is the effective annual rate charged by each bank

Answers

Annual effective rate (a) =.072286 Each bank charges an annual effective rate of = 7.23%.

The effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER), or simply effective rate is the percentage of interest on a loan or financial product if compound interest accumulates over a year with no payments made. It is used to evaluate interest rates between loans with different compounding periods, such as weekly, monthly, half-yearly, or yearly. The effective interest rate is especially significant for low-income borrowers since it computes the impacts of compounding assuming no periodic payment of interest, so that future interest accrues on both the principle and the present interest. The APR, on the other hand, reflects the annual total interest charge provided periodic interest is paid as soon as it accrues.

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How are volatility and risk related in an investment?

A.
a volatile investment is less risky
B.
a volatile investment is more risky
C.
volatility and risk are not related

Answers

The terms volatility and risk are related in an investment because a volatile investment is more risky. The Option B is correct.

What is a volatile investment?

Basically, the term volatility describes when a market or security experiences periods of unpredictable and sometimes sharp, price movements. Most People often think of volatility only when prices fall, however volatility can also refer to sudden price rises too.

Most of the Increased market volatility are caused by economic or policy factors including changes in other markets, interest rate hikes, and the Fed's current monetary policy. A political instability can also lead to market volatility.

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comet powder company has purchased a piece of equipment costing $100,000. it is expected to generate a ten year stream of benefits amounting to $16,273 per year. if comment desires a 8% rate of return what it the net present value of this investment?

Answers

Present value of this investment is =60.27%

Return on Investment (IRR)

Discounted rates that cause the NPV to equal zero are what determine the internal rate of return. N P V = P v 0 + P v 1 + P v 2 + P v 3 +... + P v n = 0

In other words, the starting period's initial cash investment will be equal to the present value of the expected future cash flows. (Cost paid = present value of future cash flows; the net present value is therefore equal to zero.)

The capital budgeting decisions are made using the IRR as a tool. A project is accepted if its IRR is greater than its WACC; otherwise, it is refused.

The IRR (r) of the project is calculated using the following formula:

$$NPV =0 =C1/(1+r)+C2/(1+r)+C2/(1+r)+C2/(1+r)+C2/(1+r)+...+ Cn/(1+r)n -

Purchasing price is $100,000

Benefit per year is $ 16,273

Benefit after 10 years = $16,273*10 = $160,273

Returns in 10 years = $160,273-$100,000 = $60,273

Rate of return = 60,273/100,000 * 100%

=60.27%

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an increase in money demand would create a surplus of money at the original value of money. a. true b. false

Answers

False. An increase in money demand would not create a surplus of money at the original value of money.

The demand for money is growing, as evidenced by a rise in demand. A greater real GDP, a greater price level, a shift in expectations, a rise in transfer costs, or a shift in preferences could all contribute to such an increase.

The equilibrium interest rate will alter if there is a change in the demand or supply of money. The demand curve of money swings to the right as money demand rises, which raises the nominal interest rate. On the other side, as money demand declines, the demand curve of money shifts towards the left, which results in a reduced interest rate.

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a government-owned monopoly is more likely to: multiple choice provide a greater quantity of output than a private monopoly. provide output at a lower price than a private monopoly. serve public interest than maximize profit. all of these are true.

Answers

A monopoly is a marketplace shape in which a unmarried vendor or manufacturer assumes a dominant role in an enterprise or a sector.

The required details for monopoly in given paragraph

1) option D) for a government owned monopoly, It serves public greater effectively, & as it's far regulated. So P is Lower & Q is better compared to personal monopoly .

2) option A) For a monopoly, MR is usually much less than rate, bcoz so one can promote greater, rate need to be decreased on a units, Hence rate impact exists.

3) option D) if corporations call for curve shifts to left, then new corporations are coming into marketplace, in order that marketplace proportion of every falls. Then moving stops whilst marketplace is in new long term eqm. Where P = ATC, So every earns 0 profit & No incentive for brand new corporations to enter.

4) option B) ​​​​​​no moving of call for curve happens, if P = ATC Because all corporations earn 0 profit

​5). Option C) in each ideal Competition & Monopolistic opposition

At eqm in long term, each earn 0 everyday profits

6) option a) in long term, P = ATC , in order that profit = 0 in long term

7) option b) there may be extra ability in Monopolistic Competition, due to the fact in long term, P = ATC. SO the output is much less than socially green level, in which P = MC

Monopolies are discouraged in free-marketplace economies as they stifle opposition and restriction substitutes for consumers.

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when a group of workers have routine tasks to perform a communication structure allows more time for the task to be completed

Answers

When a group of workers has routine tasks to perform a communication structure allows more time for the task to be completed centralized.

Centralisation or centralization (see spelling differences) is the system by using which the sports of an agency, particularly the ones regarding planning and choice-making, framing method and rules end up concentrated inside a specific geographical area organization. This actions the critical selection-making and planning powers in the middle of the enterprise. The time period has a spread of meanings in several fields. In political science, centralisation refers to the attention of a government's electricity—each geographically and politically—into a centralised authorities. An antonym of centralisation is decentralisation.

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true or false: federal loans should only be borrowed after you have exhausted all other loan options

Answers

The answer is false that federal loans should only be borrowed after you have exhausted all other loan options.

What is federal loans?

Federal student loans are made by the government with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) that not typically offered with private loans.

Why is it false to make federal loans as the last option?
Borrowers typically have two options for student loans : federal and private. It's best to exhaust federal student loans first if you're an undergraduate student. These loans are issued by the federal government and have lower interest rates than you'll find with a private lender. You can also get them without a co-signer, and they come with repayment safety nets that private loans don't.

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Are we all becoming too focused on buying things?

Answers

Yes, we are all becoming too focused on buying things.

With the current expansion in technology and lifestyle, people have become more focused on buying things apart from the necessities of life.

Everyone seems to be attracted to luxury items and wants to buy them for fun or pleasure.

In the olden times, there wasn't much development and generation of revenue so people focused on buying the necessary things only. But today, people become attracted to buying things and spend money on items that might be of no use to them.

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suppose the firm decides to increase its production for the period to 10,000 units (assume the firm has enough excess capacity to produce the 10,000 units) but continues to sell only 7,200 units. 1) calculate net income for the period company using absorption costing at this new 10,000 unit level of production (1pt). 2) compare your answer in partb, 1) to your answer in parta, 1). by how much did net income change under absorption costing? (0.5pts) 3) calculate net income for the period company using variable costing at this new 10,000 unit level of production (1pt). 4) compare your answer in partb, 3) to your answer in parta, 2). by how much did net income change under variable costing? (0.5pts)

Answers

Net income for the period company using absorption costing is $605,500

Net income for the period company using variable costing is $605,500

Net income for the period company using absorption costing at this new 100,000 unit level of production is $755,500

$150,000 ($755,500 - $605,500) net income change under absorption costing.

Net income for the period company using variable costing at this new 100,000 unit level of production is $605,500

$0 ($605,500 - $605,500) net income change under variable costing.

In arithmetic, a variable (from Latin variabilis, "changeable") is an image and placeholder for any mathematical item. In particular, a variable can also represent a variety of, a vector, a matrix, a feature, the argument of a function, a set, or an element of a fixed. Algebraic computations with variables as though they have been specific numbers solve more than a few problems in an unmarried computation. For instance, the quadratic system solves any quadratic equation by substituting the numeric values of the coefficients of that equation for the variables that represent them inside the quadratic method.

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A new piece of equipment is installed in the prep area. What should the person in charge do?

Answers

The prep section has a fresh piece of equipment installed. The supervisor looks over the master cleaning service and adjusts it as appropriate.

What is meant by the supervisor?

A supervisor is crucial to the management of a business. Their participation in a company is essential to ensuring that operations go without a hitch when a management is not present.

A competent manager should be able to carry out a variety of daily tasks and responsibilities, including:

accomplishing departmental goals through managing personnel and streamlining workflow.putting policies, processes, and systems into effect and enforcing them.monitoring employee productivity while giving them insightful criticism and instruction.establishing performance targets that are in line with the aims and visions of the organization.ensuring adherence to corporate guidelines and legal requirements.communicating information between staff and senior management.managing client issues that might become more complex and call for supervisory intervention.helping with staff hiring and dismissal.

Thus, when a new piece of equipment has been placed in the prep area. The supervisor reviews the master cleaning and makes any changes necessary.

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brutus co. exists in a world with taxes, but otherwise, capital markets are perfect. brutus co's debt cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%. what's brutus co's leverage ratio? group of answer choices 40% 80% 20% 60%

Answers

Brutus co's leverage ratio is  40%

What leverage ratio?The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.The rate that a business is anticipated to charge on average to all of the holders of its securities in order to fund its

Cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%.

WACC = (5.8% x 25%) + (5.8% x 11% x 6%)

WACC = 3.973

WACC =   40%

Brutus co's leverage ratio is  40%

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