Answer:
The correct answer is C. Common fixed costs.
Explanation:
A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.
This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.
Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.
Well, yes, is that's the question
6.29% is the rate of growth
<u>Explanation:</u>
<u>The following formula is used
</u>
Price = D1 / ke -g
39.86 = 1.2 multiply with (1 + g) / 0.095 - g
3.7867 – 39.86 g = 1.2 + 1.2 g
2.5867 = 41.06 g
Now, we have to calculate the value of g
g = 2.5867 divide 41.06
= 0.0629
= 6.29 %
Where:
G = growth, ke = market rate of return, D1 = dividend ( annual), P = price of the share of company
Some potential economic consequences that Richard did not consider before making his decision are:
- The cost of maintenance for used trucks.
- The cost of gasoline from the town to the nearest city.
- The location of the places that goods will be transported to and from.
<h3>What are economic considerations?</h3>
These are the factors that will affect the profitability and viability of a business.
In Richard's case, he needed to have considered various costs such as the higher cost of maintaining used trucks and the cost of gasoline that he will incur for living so far from big cities.
He also needs to consider the distance his trucks will have to travel to pick up good and deliver them.
Find out more on economic considerations at brainly.com/question/13721949.
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