Answer:
$2400
Explanation:
Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:
Average cost = Total cost / number of units.
Given that:
The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25
From Average cost = Total cost / number of units.
Substituting gibes:
$1 = Total cost / 100 selfie stick
Total cost = $1 × 100 = $100
Total cost = $100
Revenue = Price per item × Number of items
Revenue = $25 × 100 = $2500
Profit = Revenue - Total cost
Profit = $2500 - $100 = $2400
Total cost = $2400
Answer:
$315,198
Explanation:
WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.
WACC = 11.5%
Exit multiple = Total cash outflow / Total cash inflow
Exit multiple = $120,000 / 36,000 = 3.3x
EBITDA of the company is $178,412.
The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.
<h3>What is a Long-term Bond?</h3>
Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.
They usually pay a higher interest rate than the short-term bonds which span between a year and three years.
See the link below for more about long-term bonds:
brainly.com/question/3521722
The strategic alliance between GM and Lyft allows GM to hedge against uncertainty by giving GM access to the market of the future, increasing its market innovation.
Through this strategic alliance, GM demonstrates innovation in its processes by investing in a car rental market, as there is an expectation that in the future there will be a drastic reduction in private cars.
<h3 /><h3>What is a strategic alliance?</h3>
Corresponds to an agreement between two or more companies, where there is an independent partnership for sharing organizational resources, such as technology, market and knowledge.
Therefore, through the partnership with Lyft, GM is already entering an innovative and expanding market, developing its positioning strategy for the future.
Find out more about strategic alliance here:
brainly.com/question/13710961
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Answer:
Find the explanation below.
Explanation:
1. The company I chose to operate would be Celebrity Hair Salon. The Celebrity Hair Salon is a standard salon with comfortable furnishings and state-of-the-art equipment intended to tend to the needs of celebrities. Clients are expected to make appointments for their services which the salon strictly adheres to.
2. I would prefer to fund this new business through debt financing. Debt funding entails borrowing funds from Creditors with the intention of paying back at a later time with the attached interest. Equity funding entails giving an investor a certain percentage of the company's returns thus making him a co-owner of the company. This affords him the right to make decisions for the business. Detaching the investor from this business is difficult because it requires buying him out.
I would prefer debt financing because I wish to retain sole ownership of the business. I can also go through some government agencies to obtain funds at lower interest rates. Moreso, there is a fixed debt repayment plan that I can set a target to meet until the debt is paid. Finally, I can regain my freedom after the payment is completed, thus regaining my business and not entitling me to anyone.
