Answer:
cost formula: Total cost = F + (V x Q) = $4,500 + ($0.75 x Q)
- F = fixed costs = $4,500
- V = variable costs = $0.75 per guest day
- Q = number of guest days
Explanation:
month occupancy supplies expenses
march 4,000 $7,500
april 6,500 $8,250
may 8,000 $10,500
june 10,500 $12,000
july 12,000 $13,500
august 9,000 $10,750
september 7,500 $9,750
high activity level 12,000 $13,500
low activity level 4,000 $7,500
variation 8,000 $6,000
variable cost per guest-day = $6,000 / 8,000 = $0.75
fixed costs per month = $13,500 - (12,000 x $0.75) = $4,500
cost formula: Total cost = F + (V x Q)
F = fixed costs = $4,500
V = variable costs = $0.75 per guest day
Q = number of guest days
Investors at Penny's candies have low expectations from the company since it has a very low P/E ratio. Either the company is not performing well or investors have discounted some bad news in future cash flows.
Whereas Donna's confections has a P/E of 6.7 which is much better than that of Penny's. So here the company is performing well and investors are positive on future good news and they expect the cash flows to improve and hence the stock rules at a higher P/E ratio
Answer:
Explanation:
Available for sale securities are required to be reported at fair value.
Hence the difference between amortized cost and fair value is required to be transferred to other comprehensive income.
The amount of credit loss that Marin should report on this available for sale security at 31-12-2020
= $52,000 - $44,000
= $8,000
Answer:
Option B is correct.
Explanation:
Option A is incorrect because the expected return must be greater than the marginal cost of the capital which means that the Net Present Value must be positive.
Option B is correct because the increase in cost of debt or capital would increase the weighted average cost of capital. This is because weighted average cost of capital is directly proportional to cost of capital sources.
Option C is incorrect because its not the cost of one of the capital sources, actually it is the weighted average cost of capital which when starts increasing at a point due to increase in the level of financing is known as breaking point.
So the only statement that is correct is option B.
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