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3 years ago

Financial leverage:

Business

1 answer:

s344n2d4d5 [400]3 years ago

5 0

Answer:

Correct option is (5)

Explanation:

Financial leverage refers to including debt in the acquiring financial assets of the company. Source of funds includes a mix of equity and debt. The more the debt content, more is the company financially leveraged.

As proportion of debt increases, cost of equity increases as investors assume more risk. Volatility of stock increases so investors need to be compensated more for risk assumed by them. As such, their return increases.

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Susan Marciano invested part of her $38,000 bonus in a fund that paid a 10% profit and invested the rest in stock that suffered

kakasveta [241]

Answer:

Missing word <em>"The amount invested at 10% is $? and The amount invested in stock is ?"</em>

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Let Susan invested $x that paid a 10% profit

Then (38,000 - x) suffered loss at 4%

Overall net profit = $3,350

10% of x - 5% of (38,000 - x) = $3,350

10/100*x - 5/100*(38,000 - x) = $3,350

10x - 5*(38,000 - x) = 335,000

10x - 190,000 + 5x = 335,000

15x = 335,000 + 190,000

15x = 525,000

x = 525,000/15

x = 35,000

From (38000 - x) when x = 35,000

==> 38,000 - 35,000

==> $3,000

So, the amount invested at 10% is $35,000 and the amount invested at 5% i.e stock is $3,000

3 0

3 years ago

17. Andy Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of

kenny6666 [7]

Answer:

D) Credit to Merchandise Inventory for $4,000

Explanation:

Date Account and Explanation Debit ($) Credit ($)

Account Receivable 5,800

Sale 5,800

(Recorded the sale on credit)

Cost of goods sold 4,000

Merchandise Inventory 4,000

(Recorded the cost of goods sold)

5 0

3 years ago

In the Month of March, Baldwin received orders of 101 units at a price of $15.00 for their product Bill. Baldwin uses the accrua

Delvig [45]

Answer:

d) 0, $1,515

Explanation:

total sales revenue = 101 units x $15 per unit = $1,515

since the goods were delivered in April, the sales revenue must be recorded in April, not March (when the orders and advanced payments were received), nor May (when the invoices were paid in full).

The accrual accounting system states that revenues and costs must be recognized during the periods when they actually occur and not when the sales are collected or expenses are paid.

The journal entries to record this sales would be:

March, order for 101 units is received:

Dr Cash 757.50

Cr Unearned revenue 757,50

April, the goods are delivered:

Dr Unearned revenue 757.50

Dr Accounts receivable 757.50

Cr Sales revenue 1,515

May, the invoice is paid in full:

Dr Cash 757.50

Cr Accounts receivable 757.50

3 0

4 years ago

Samson Company reported total manufacturing costs of $320,000, manufacturing overhead totaling $52,000, and direct materials use

Artemon [7]

Answer:

$204,000

Explanation:

Given that

Total manufacturing costs = $320,000

Manufacturing overhead = $52,000

Direct materials = $64,000

The computation of direct labor cost is shown below:-

Direct labor cost = Total manufacturing costs + Manufacturing overhead + direct materials

= $320,000 - $52,000 - $64,000

= $204,000

Therefore for computing the direct labor cost we simply applied the above formula.

3 0

3 years ago

What is the advantage to a multi-criteria analysis?

telo118 [61]

Answer:

c. It is easily adaptable to as many suppliers as you need to evaluate

Explanation:

It involves many factor to analyze a decision due to variety of different assessments it has, it can be applicable to many supplier. It is very helpful to decision making because every aspect of each supplier is analyzed and makes a quality decision. Multi criteria analysis assess every supplier on different factors to find the difference between them and make a best decision.

8 0

3 years ago

Read 2 more answers