Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $2,500,000 $1,840,000 Property, plant, and equipment 5,600,000 6,072,000 Intangible assets 1,900,000 1,288,000 Current liabilities 2,000,000 1,380,000 Long-term liabilities 3,400,000 3,680,000 Common stock 920,000 920,000 Retained earnings 3,680,000 3,220,000 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. Round percentages to one decimal place. Alvaraz Company Comparative Balance Sheet For the Years Ended December 31 Current Year Amount Current Year Percent Previous Year Amount Previous Year Percent Current assets $2,500,000 % $1,840,000 % Property, plant, and equipment 5,600,000 % 6,072,000 % Intangible assets 1,900,000 % 1,288,000 % Total assets $10,000,000 % $9,200,000 % Current liabilities $2,000,000 % $1,380,000 % Long-term liabilities 3,400,000 % 3,680,000 % Common stock 920,000 % 920,000 % Retained earnings 3,680,000 % 3,220,000 % Total liabilities and stockholders' equity $10,000,000 % $9,200,000 %

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

Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit

Below are the steps in the measurement process of external transactions. arrange them from first (1) to last (6). event step post transactions to the general ledger. assess whether the transaction results in a debit or credit to account balances. use source documents to identify accounts affected by an external transaction. analyze the impact of the transaction on the accounting equation. prepare a trial balance. record the transaction in a journal using debits and credits.