Answer:
The difference between your assets and your liabilities is known as either your profit or loss.
Answer:
2nd option is correct.
Explanation:
Variable over head = (Actual Qty. - Standard Qty. ) * Standard cost
Efficiency variance
= (10125-9000) * 30
= $ 33750 (Un-Favorable)
2nd option is correct.
Variance is unfavorable because actual quantity used to produce is more than budgeted quantity allowed at that level of production.
Answer:
Derived demand accelerates changes in markets.
Explanation:
Derived demand can be defined as the way in which the demand for a good or service tend to result from the demand for the related good or service and this occured when their is the demand for either good that are tangible or intangible goods where a market exists for both related goods and services.
In another word Derived demand occured in a situation where the demand for one good or service happens because of the want for another good or service Example is increase in the need for Shoes material or equipment because of the increase in the need for Shoes
because the factor of production by a company is dependent on the demand by consumers for the product produced by that company which is why the transition to become demand-driven is slowly occurring in many industries.
Hence, The factor that increases the volatility of demand in industrial markets is "Derived demand accelerates changes in markets"
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 %
