Answer:
they use financial statements and other information prepared by accountants to make financial decision and are focused on the cash flows, the inflows and outflows of cash.
Explanation:
Answer:
Ford's weighted average cost of capital is 8.22 %
Explanation:
Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.
Calculation of WACC
WACC = Cost of equity + Cost of preferred stock + Cost of debt
Capital Source Market Values Weight Cost Total Cost
equity $ 7 billion 29.17% 13.6% 3.97 %
preferred stock $ 2 billion 8.33% 12% 1.00 %
debt $ 15 billion 62.50% 5.2 % 3.25%
Total $ 24 billion 8.22 %
Cost of equity = Risk free rate + Beta × Risk Premium
= 4% + 1.2 × 8%
= 13.6%
Cost of preferred stock = Dividend/Market Price
= $ 3/ $ 25 × 100
= 12%
Cost of debt = interest × (1- tax rate)
= 8% × (1-0.35)
= 5.2 %
Answer:
Should shut down if its short-run average variable cost exceeds $25.
Explanation:
This directly explains the firms profit maximizing level of output in a short run. And in the scenario above, the firm made a $25 gain per unit output, it is advised the firm should shut down if its shut run average variable cost exceeds $25.
A process that companies undergo to determine the best output and price levels in order to maximize its return. The company will usually adjust influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. There are two main profit maximization methods used, and they are Marginal Cost marginal Revenue Method and Total Cost total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices.
A contingency table consists of a double entry table with rows and columns in which the categories are plotted in descending order of the magnitude of their frequencies.
<h3>What is a contingency table?</h3>
They are frequency tables in which data from two qualitative variables are recorded and the relationship between them is analysed.
In these tables, the rows represent the categories of one variable and the columns the categories of the other variable or characteristic under study.
The cell located at the intersection of a given row and column, collects the absolute frequency simultaneously presented by the modalities that occupy the corresponding row and column.
Therefore, we can conclude that a contingency table consists of a double entry table with rows and columns in which the categories are plotted in descending order of the magnitude of their frequencies.
Learn more about contingency tables here: brainly.com/question/5492865
