Calculate cost of capital for a debt-to-capital ratio
The Callaway Company's cost of equity is 22%. Its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The firm's capital structure calls for a debt-to-capital ratio of 45%. Calculate Callaway's cost of capital.
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Greetings Online disposed of a van that cost $22,000 with accumulated depreciation of $15,000. The journal entry would be to:
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