The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
.
Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
Answer: d. open-book management.
Explanation:
OPEN-BOOK MANAGEMENT is a style of management where employees are given financial information on the company to help them perform better.
The concept is rooted in a theory that workers tend to have more motivation and be more productive when they feel as though they are being treated like Business partners who are usually the ones with access to such data as opposed to employees who usually do not.
Question attached
Answer:
1. $3586
2. More than the amount of inflation
Explanation:
Consumer price index 1989 = 114
Price 1989 = $1817
Price for 2009=Consumer price index for 2009 / Consumer price jndex 1989 = Price 2009 / Price 1989
= 225 / 114 = Price 2009 / $1817
= Price for 2009 = $3586
cost of tuition increased in 2009 by = $3307 that is 6893 - 3586 more than amount of inflation
<span>The
targeted information presented on blogs, such as Daily Kos and Power Line, is
an example of narrowcasting. Its objective is to deliver custom-tailored ads
based on demographic, psychographic and past buying patterns to potential
recipients who are predisposed to it. It is also an act of spreading an
advertising message or signal over a small geographical area or to a selected group
of audience. Narrowcasting done through direct mail, cable television, seminars,
specialized trade publications, and keyword-associated web advertising.</span>
Answer:
operating Income = Sales – Variable Costs – Fixed Costs
A CVP analysis is used to determine the sales volume required to achieve a specified profit level. Therefore, the analysis reveals the break-even point where the sales volume yields a net operating income of zero and the sales cutoff amount that generates the first dollar of profit.
Cost-volume profit analysis is an essential tool used to guide managerial, financial and investment decisions.
COST-VOLUME PROFIT ANALYSIS
Contribution Margin and Contribution Margin Percentage
The first step required to perform a CVP analysis is to display the revenue and expense line items in a Contribution Margin Income Statement and compute the Contribution Margin Ratio.
