Answer:
The correct answer is D. $1,320,000
.
Explanation:
In this case, it should be considered that the Stone Company is just beginning to operate, so the capital at the end of the period is made up of the following:
Initial Capital: $ 1,200,000
Dividends: $ 120,000
TOTAL = $ 1,320,000
Net income is not part of the measurement of capital, since information on expenses must be available to calculate the profit or loss for the period. For its part, investments in shares are considered a current asset and do not enter into this calculation.
Answer:
$4,900
Explanation:
Given that,
Total cost at a production level of 400 units = $8,500
Each unit of pulp requires = 6 direct labor hours
Variable cost = $1.50 per direct labor hour
Total variable cost:
= Cost per direct labor hour × Direct labor hours required for each unit × No. of units produced
= $1.50 × 6 × 400
= $3,600
Total cost is sum total of total fixed cost and total variable cost.
Total cost = Total fixed cost + Total variable cost
$8,500 = Total fixed cost + $3,600
$8,500 - $3,600 = Total fixed cost
$4,900 = Total fixed cost
Answer:
C. Selling is a larger process that involves many steps that lead to and support this narrower definition of selling.
Answer:
The correct word for the blank space is: value chain.
Explanation:
American economist Michael E. Porter (<em>born in 1947</em>) coined the term value chain to denote the interrelated operating activities businesses perform during the process of converting raw materials into finished products. The goal in value chain analysis is to find ways to add value to the product along each part of the process and do so at the lowest possible cost.
Answer:
the company's cost of equity is 11.47 %.
Explanation:
The Company`s cost of equity is the return that is required by holders of Common Stocks.
The Cost can be determined using the <em>Capital Asset Pricing Model</em> (CAPM) as follows :
Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio
= 2.86 % + 1.23 × 7.00 %
= 11.47 %.
