Answer: 14.95%
Explanation:
The firm required return is;
= Risk free rate + beta * (Market return - RIsk free rate)
= 6.5% + 1.30 * ( 13% - 6.5%)
= 14.95%
<em>It is better to use the estimated future return. </em>
An efficiency wage is a higher wage paid to reward workers who show greater productivity. Option D is correct.
<h3>What is the Efficiency wage?</h3>
Wages provided to employees over the minimum wage in order to retain a trained and efficient staff are referred to as efficiency wages. Adam Smith defined a type of pay disparity in the 18th century, in which workers in some businesses are paid more than others based on the level of trustworthiness necessary.
Employers establish efficiency salaries above the equilibrium wage rate as an incentive for better employee performance. An efficiency wage is a higher wage provided to employees who are more productive.
Therefore, option D is correct.
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Answer:
Radar's additional income for accepting the order is calculated as follows:
Sales - 320 x $460 = $147,200
less Cost of Sales = 320 x $180 + $48,000 = $105,600
Additional Income = $41,600
Explanation:
The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.
The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.
To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs. The resulting additional income is what is available to offset the fixed costs.
Determinants of long a firm should borrow money include are:
⇒the seasonal environment of the business
⇒the cost of inventory
⇒the cash flow forecast
The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.
To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.
The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.
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Answer:
- $17,600
Explanation:
The computation of the net decrease in cash during the month is shown below:
= $40,600 - $17,400 - $30,200 - $2,300 - $8,300
= - $17,600
After calculating the items which are presented in the column 1 represent the net decrease in cash for $17,600 amount.
The net decrease in cash represents an outflow of cash. In this, the chances of loss may be higher than the loss.
