Answer:
The correct answer to the following question is option D) the vertical distance between ATC ( Average total cost ) and AVC ( Average variable cost ) .
Explanation:
AFC which is know as average fixed cost , can be taken out by dividing the total fixed cost from the total number of units produced. In the earlier phase , for the given number of units produced, both AVC and AFC curve would decrease, which would ultimately lead to fall in ATC. But when the units increase , the AVC would start to rise but AFC is still falling and due to this ATC would sill fall , because fall in AFC is still greater than rise in AVC . As output further rises , the AVC would keep on rising and would finally offset fall in AFC and ATC would also start rising. Therefore AFC would be determined by vertical distance between ATC and AVC.
Answer:
Cost of external equity financing 16.64%
Explanation:
Cost of external equity financing=Div*(1+g)/P (1-F) + g
F = the percentage flotation cost=4%
Div=Dividend in the current period=$3.7
g=growth=9%
P=Market price of the stock= $55
Cost of external equity financing=3.7*(1+0.09)/(55*(1-0.04))+0.09=0.166383=16.64%
in accrual basis accounting, revenue is recorded when the seller's product is shipped or service is provided.
Revenue is the money made from regular business operations and is calculated by multiplying the average sales price by the quantity of units sold. In order to calculate net income, costs must be deducted from the top line (or gross income) figure. On the income statement, revenue is also known as sales.
Even though the cash for the transaction has not yet been exchanged, accruals are earnings or expenses that have an influence on a company's net income on the income statement. Due to the non-cash assets and liabilities they involve, accruals also have an impact on the balance sheet.
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<span> The fact that Pat has a savings account and a car loan from a not-for-profit financial institution owned by its member , means that </span>Pat is probably a member of the financial institution: Credit Union. This type of financial institution is created and operated by its members (the members are <span>depositors, borrowers, and shareholders.</span>
