E Sewell Corp, has no debt outstanding and a total market value of $575,000. Earnings before interest and taxes, EBIT, are projected to be $44,750. The company is considering a $110,000 debt issue with an interest rate of 8.5%. The proceeds will be used to repurchase shares of stock. Ignore taxes for this problem. What is the company's expected return on equity after the change in the capital structure? A 7.61% B 8.15% 9.62% 6.47% 6.16%

what is a P&L

5) Explain why we de-lever and re-lever the PL.

Zina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800