Answer:
The correct answer is option D.
Explanation:
The market price is P.
The marginal cost is given at MC.
The subsidy is equal to s.
When the subsidy is provided to only a single firm, that firms marginal cost will decline. The firm can take advantage of decreased marginal cost by increasing the output level. The firm will produce the output where the price and marginal revenue is equal to marginal cost plus subsidy. At this point, the firm will be having maximum profit.
So, the firm will increase production until
P=MC+S
Answer: D inventory conversion period
Explanation:
Inventory conversion period reports us about the average time to convert our total inventory into sales. It is relationship between total days in year and inventory turnover ratio. In other words, it measures the length of time on average between the acquisition and sale of merchandise.
Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
Answer:
The Journal entry is as follows:
Land A/c Dr. $400,850
To Cash A/c $100,850
To Notes payable $300,000
(To record purchase of land with cash and notes payable)
Workings:
Purchase price of land = $392,000
Total cost of land:
= Purchase price of land + Property taxes + Title insurance + Removal of building
= $392,000 + $2,100 + $950 + $5,800
= $400,850
Answer:
C. Business Strategy
Explanation:
White Leo Autos has four different cars and each of them operates as a separate Strategic Business Unit SBUs.
Business strategy is how the SBU competes in the market. The competitive strategy of the unit like differentiation strategy or cost leadership etc.
Corporate strategy focuses on how each SBU is operating and how it serves to the mission and vision of the organisation.
Functional strategy focuses on the different functions like HR, marketing, finance of each SBU.
