Answer:
c. Argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.
Explanation:
The Pecking order theory states that a business should first of all seek for internal funds (retained earnings) as a first choice of capital.
When internal funds are depleted, it can now look to debt as a source of finance.
In turn when debt options have been exhausted the last resort is to look for funding from equity.
So the Pecking order argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.
Answer:
c. the effect on net income will depend on the behavior pattern of various costs.
Explanation:
When sales volume increases or decreases, to determine the effect of this on net income it is important know the behavior pattern of a cost because costs also affect the net income and they have show different patterns. Variable costs will increase or decrease according to the variation of the quantities sold and fixed cost tend to stay the same. However, they may change if, for example, it is necessary to rent a bigger space to be able to increase production and this increase in a fixed cost might take the effect in the net income of an increase in the sales volume. So, understanding this type of behavior is important to understand how changes in sales volume can affect the net income.
Answer:
=E7/B7*100
Explanation:
For Kelly to want to see Joan's bonuses as a percentage of her base salary is because Kelly has already calculated the amount she was entitled to but she wants to know compare Joan's bonuses to her base salary. So to get that Kelly has to do divide Joan's total bonuses by her base salary then multiply by 100% the formula structure in cell G7 will be: =E7/B7*100
The appropriate response would be "no". Assume the p-esteem is 4%. That is sufficient to dismiss the invalid speculation at the 5% noteworthiness level, however insufficient at 3%. 3% is a higher (lower numerically) hugeness limit. It implies the chances are much lower that the watched result could have happened by shot.
<span>Automotive industry
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