Answer:
11.3%
Explanation:
O'Brien has the following data
rRF= 5%
RPM= 6%
b= 1.10%
Therefore the cost of equity can be calculated as follows.
= 5% + 6%(1.05)
= 5% + 6.3
= 11.3%
Hence the cost of equity is 11.3%
Answer:
What type of competitive growth strategy is Jessica's manager discussing?
c. product development
Explanation:
Most companies in business usually compete over the number of customers that they can gain over time, at times called the market share. The amount of market share a business has directly affects the sales and profit margins. The market share is a limited resource, therefor companies in business have to use various strategies to ensure that they have a proportional share of the market. A business that is just starting or that is relatively young, needs a growth strategy especially if there is an existing competition with a huge market share. Growth strategies are methods that small businesses can use to expand and develop thus increasing there market share. There are different strategies that could be used. Some examples are; market penetration, market expansion, product development and acquisition of other companies.
Let as consider product development as a competitive growth strategy. Product development involves all the steps towards developing a new product or re-branding the product to attract customers. The decision by Jessica's manager to utilize the firm's top-secret salsa recipe and packaging them into 16-ounce jars to sell at the restaurant to expand their market share is a form of product development strategy.
Answer:
B. Company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment.
Explanation:
When the priority of an organization is to support the profit, people, and planet, the company is said to be a socially responsible organization. The company actively seeks opportunities for social development rather than getting profit for them. The company is contributing towards the economy, people in general, and the environment. The socially responsible company cannot try to maximize its return on investment. Therefore, option B is the correct answer.
Answer:
Overhead volume variance= $1000 unfavorable
Explanation:
Giving the following information:
Actual total factory overhead incurred $ 28,875 Standard factory overhead: Variable overhead $ 2.10 per unit produced Fixed overhead ($11,200/11,200 predicted units to be produced) $ 1.00 per unit Predicted units to produce 11,200 units Actual units produced 10,200 units.
Overhead volume variance= fixed overhead rate*(Normal capacity - standard capacity)
Fixed overhead rate= $1 per unit
Standard capacity= 11,200 units
Normal capacity= 10,200
Overhead volume variance= 1*(10,200 - 11,200)= $1000 unfavorable
If weston mines has a cost of equity of 20.8 percent, a pretax cost of debt of 9.4 percent, and a wacc of 17.1 percent. ignore taxes. the equity-asset ratio is:0.48.
<h3>How to find the equity -asset ratio?</h3>
Given data:
Cost of equity = 20.8%
Pretax cost of debt = 9.4%
Wacc =17.1%
Hence,
Equity -asset ratio:
0.208=0.171 + [(0.171 - 0.094) ×E/A]
0.208 -0.171 = [(0.171 - 0.094) ×E/A]
0.037= 0.077 ×E/A
E/A = 0.037/0.077
E/A =0.48
Therefore the equity- asset ratio is 0.48.
Learn more about equity-asset ratio here:brainly.com/question/28138260
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