Answer:
option (A) 10 percent
Explanation:
Data provided in the question:
Dividend yield = 3 percent
Expected growth rate = 7 percent
Therefore,
The ABC's required return will be
= Dividend yield + Expected growth rate
or
The ABC's required return = 3% + 7%
or
The ABC's required return = 10%
Hence,
The ABC's required return is option (A) 10 percent
Answer:
Product 1 - $36
Product 2 - $ 96
Product 3 - $66
Explanation:
The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.
These costs includes cost of purchase, freight, Insurance cost during transit etc.
Subsequently, inventory is to be carried at the lower of cost or net realizable value.
The NRV is the Selling price less the cost to sell.
Given
Product 1 Product 2 Product 3
Cost $36 $ 106 $ 66
Selling price $ 88 $ 168 $ 118
Costs to sell $ 9 $ 72 $ 26
NRV $ 79 $ 96 $ 92
January and February are the 2 worst months to make a large profit by selling french fries. The most sold are during September and November. These months are much warmer than January and February.
If the firm can increase its profit by increasing its output then the firm is not producing at where the marginal cost is equal to the marginal revenue. A profit-maximizing firm in a competitive market will produce its output at the point in which MC=MR.
