Answer:C. Damage to completed cars held on a storage lot
Explanation:
Operational risk are the hazards and the uncertainties that are faced by companies in the day to day activities. It may be caused as a result of system failure or manufacturing components.
An example of operational risk for a company that manufactures automobiles would be damage to completed cars held on a storage lot.
Answer:
12.085 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt
Remember to use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
= 8.00 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55
= 12.085 %
thus
the firm's WACC given a tax rate of 35 percent is 12.085 %
Answer: C. optimal mix of the risk-free asset and risky asset
Explanation:
Risk aversion simply has to do with how people curtail risk and this is done through the preference for the outcomes that have low uncertainty than those that have high uncertainty.
An investor's degree of risk aversion will determine his or her optimal mix of the risk-free asset and risky asset even if they've access to the same risk-free asset and also the same investment opportunity set of risky assets.
Thunderstorms are likely to occur during the afternoon or the evening in which will likely happen during this time because this is where unstable winds enter and moisture from the clouds and rain-- as they are a major component needed in order for a thunderstorm to occur.
Answer:
Answer : Average Marginal Cost, Marginal Cost = $2
The total cost per hour of the janitorial service firm = $32
Explanation:
The janitorial firm only uses labour as an input to clean offices and there are no fixed costs. This implies that the total cost is only the variable cost.
Each worker can clean 4 offices in an hour, therefore the output of each labour is 4units per office cleaned. The price/wages paid to each worker isb $8 per hour.
The total cost per hour of the janitorial service firm is $8x4 = $32 (wxq)
Now to clean one more office, the time required will be 15minuites, because each worker can clean 4 offices in an hour. To clean one more office , each worker will be paid $2($8/4)
The variable cost/total cost, average variable cost and the marginal cost of cleaning one more office will be
Variable cost =w.q = 2q
Average Variable Cost = VC/q = 2q/q = $2
sine the marginal cost also varies directly as the average marginal cost , the Marginal Cost is $2
