Answer:
The correct answer is letter "D": short-term financing.
Explanation:
Short-term financing allows companies to obtain capital for their <em>day-to-day operations</em>. The funds obtained are typically used for the transactions companies require during one period -one year, but the term for payment tends to be within six (6) to twenty-four (24) months. Under this scenario, the main purpose of firms is to keep their businesses up and running and obtain profits enough for the payment of the loan and reinvestment in the company.
Answer:
Price competition in a monopolistically competitive market
Explanation:
The Monopolistic rivalry is an industry state with several firms that are closely linked to each other but offer distinct goods. Therefore, this sector has unlimited entry and exit
Here the company offers the same service but there are totally different in terms of design, service, quality, etc
Hence, the correct option is c
This question is incomplete, the complete one was gotten from google.
Taggart Transcontinental pays no dividends, but spent $4 billion on share repurchases last year. Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outstanding.
Taggart's stock price is closest to:
A. $25.00
B. $12.50
C. $15.40
D. $20.00
Answer:
Taggart Transcontinental pays no dividends, but spent $4 billion on share repurchases last year. Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outstanding.
Taggart's stock price is closest to $25 - option A.
Explanation:
Market capitalization = 4/ (0.13 -0.05)
= 4/0.08
Market capitalization = 50
Price per share = 50/2 = $25
Therefore, Taggart's stock price is closest to $25 - option A.
Based on the amount to be sold and the intended level of earnings, the selling price per unit should be<u> $3.40</u>
The Contribution margin needed is:
<em>= Fixed cost + Required earnings </em>
= 250,000 + 260,000
= $510,000
To get to this amount, the sales should be:
<em>Contribution margin = Sales x ( Selling price - Variable cost)</em>
510,000 = 250,000 × 0.6x
510,000 = 150,000x
x = 510,000 / 150,000
x = $3.40
In conclusion, the selling price is $3.40
Find out more about intended selling price/ quantity at brainly.com/question/25638811.
Answer:
80%
Explanation:
For computing the return on investment first we have to need the following calculations
New contribution margin = Old contribution margin + increase in contribution margin
= $260,000 + $30,000
= $290,000
And,
Net Income = Contribution margin - Total direct fixed costs
= $290,000 - $90,000
= $200,000
ROI = Net income ÷ average operating assets
= $200,000 ÷ $250,000
= 80%
