Answer:
The answer is D. All of the above
Explanation:
The Capital structure of most companies comprise equity, debt and/or preference shares. All these that made up capital structure has cost or let's say return. We have cost of capital, cost of debt, cost of preference shares.
Therefore, weighted average cost of capital is average of the cost of each financing component(cost of capital, cost of debt and cost of preference shares), weighted by the proportion of each component
All the options relates to the weighted average cost of capital(WACC).
A qualitative forecasting method that utilizes structured questionnaires submitted to potential customers soliciting opinions about potential products to estimate likely demand is build-up forecasting.
<h3>Build-up forecasting</h3>
It is referred to as zero-based sales forecasting.
Market identification: describe the market for the product/service being investigated by checking all the appropriate industries.
Market diagnosis: analyze the basis for evaluating the number of institutions within that industry that are likely to utilize the product/service.
The objective of a bottoms-up forecast should be to output informative data that leads to decision-making backed by tangible data.
Bottom-up forecast models enable administration teams to develop a better perception of their company, which precedes improved functional decision-making.
To learn more about Build-up forecasting visit the link
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Answer:
1.8
Explanation:
Sales= $60
Variable cost= $21
Quantity= 3,500 pairs of shoes
Fixed operating cost= $58,500
The first step is to calculate the total contribution margin
= sales-variable cost × Quantity
= $60-$21 × 3500
= $39 × 3500
= $136,500
The operating income can be calculated as follows
= Sales - variable cost × Quantity - fixed operating costs
= $60-$21×3500-58,500
= $136,500-58,500
= $78,000
Therefore the degree of operating leverage can be calculated as follows
= Total contribution margin/Operating income
= 136,500/78,000
= 1.8
Hence the degree of operating leverage is 1.8
Answer:
increase total assets by $1,300.
Explanation:
The net effect is shown below
The first entry is
Cost of goods sold Dr $2,300
To Merchandise Inventory $2,300
(Being the cost of inventory is recorded)
Now the second entry is
Account receivable Dr 3,600
To Sales revenue 3,600
(Being the sales is recorded)
Now the net effect is
= 3,600 - 2,300
= 1,300
This 1,300 reflect the increase in the total assets
