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Aloiza [94]
3 years ago
8

The marginal principle of retained earnings means that each potential project to be financed by retained earnings must:

Business
1 answer:
Sedaia [141]3 years ago
3 0

Answer:

The correct answer is D

Explanation:

Marginal principle is the principle which is referred to an increase in the activity level when the marginal advantage exceeds or more than the marginal cost.

So, the marginal principle of retained earnings would be when it will provide the higher rate of  return than the shareholders who could achieve after paying taxes on the dividends.

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It costs Sunland Company $28 of variable costs and $18 of allocated fixed costs to produce an industrial trash can that sells fo
Usimov [2.4K]

Answer:

The effect that will happen on the net income is an increase in $6,000.

Explanation:

For this product, we have:

Price: $90.

Variable cost: $28

Allocated fixed cost: $18

There is an opportunity to sell 3,000 units at $30, and the firm has excess capacity.

As the allocated fixed cost only counts for the existing level of production (before accepting the 3,000 additional units), they don't matter in the decision.

With excess capacity, the firm only incurs in the variable cost of $28 per unit. If the price is $30, the variation in the net income will be:

\Delta NI=Q(P'-VC)=3,000*(30-28)=3,000*2=6,000

The effect that will happen on the net income is an increase in $6,000.

3 0
3 years ago
The concept of risk management is based on an assessment of benefits gained compared to the ___:
Tanzania [10]

Answer:

potential risk/threat

Explanation:

the concept of risk management is based on mitigating risk or avoid potential threat and plans of minimizing the impact should they occur.

5 0
4 years ago
PLS HELPPP FASTTT!!!! Which of the following is not consistent with the efficient market hypothesis?
Morgarella [4.7K]

Answer:

c. News has no effect on stock prices.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country. For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis which states that, asset (share) prices reflect all information and it is very much impossible to consistently beat the market. Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

According to the efficient market hypothesis, News has an effect on

the prices at which a stock is sold because it affects demand and supply.

6 0
3 years ago
in construction of a new housing development, which factor of production can be catergorized by land?
svet-max [94.6K]

Answer:

need the pt srry hope you dont get made

Explanation:

8 0
3 years ago
Read 2 more answers
_____ advertising is done by local merchants to encourage consumers to shop at a specific store, use a local service, or patroni
ololo11 [35]

Answer:

The correct answer is letter "D": Retail.

Explanation:

Retail advertising is developed by retailers to attract consumers to their local stores. This type of marketing may not be necessarily focused on the product features but how they are sold, meaning in bundles or at discount. It is the final merchandising made to products before they reach end-consumers.

8 0
3 years ago
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