Smc had a 1/1/14 balance in the allowance for doubtful accounts of $20,000. during 2014, it wrote off $14,400 of accounts and collected $4,200 on accounts previously written off. the balance in accounts receivable was $400,000 at 1/1 and $480,000 at 12/31. at 12/31/14, smc estimates that 5% of accounts receivable will prove to be uncollectible. what is bad debt expense for 2014? a. $4,000.b. $14,200.c. $18,400.d. $24,000.

Revising for clarity business writers appreciate messages that are clear and understandable. proofreading and evaluating your work will you compose messages that are clear, concise, and direct. revise for clarity by eliminating trite phrases, avoiding jargon and slang, and dropping cliché́s. why do some people fail to write clear and concise messages? they always tell the truth. they write to express and impress. they write to impress instead of express.

Reactive power generation has the following capital structure. its corporate tax rate is 40%. security market value required rate of return debt $ 30 million 4 % preferred stock 30 million 6 common stock 40 million 10 what is its wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu