<u> </u><u>The </u><u>Economies of </u><u>scale </u> occur when the average unit cost of a good or service begins to increase as the capacity and/or volume of throughput increases.
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Answer: $25
Explanation:
A Preferred Stock is a special stock that entities the holder to a fixed dividend. It also gives the holder priority of stock payment over common stock holders.
The Value of a preferred stock is worked out with the following formula,
Value of the preferred stock = Dividend / Required Return
So,
Value of Preferred Stock
= 4/0.16
= $25
If you need any clarification or have any questions, do comment or react.
Answer:
$10,500 loss
Explanation:
The computation of the net income affected is shown below:
Since Big Ben purchased shares of Little Trick on 1st April ,so it has the right to receive 30% of the net income for nine months i.e from April 1 to December 31
Now the Earnings from Little Trick is
= $20,000 × 30% × 9 months ÷ 12 months
= $4,500
And, the Compensation paid is $15,000
So, the loss is
= $15,000 - $4,500
= $10,500
Answer and explanation:
Labor is one of the main factors that can drive a company to success or failure. When deciding where to locate production the labor-related factors to take into account are labor skills (<em>employees' knowledge</em>), labor costs and productivity (<em>wages and how their levels can affect employees' performance</em>), and labor laws (<em>employees' benefits according to where they work</em>).
Answer:
Cash flows from financing activities = -$12600
Explanation:
Before we determine this company's cash flows from financing activities we should understand what components or cash flows are and/or can be associated with financing activities of a business. Cash flows from financing activities include all those cash flows that are received/paid in financing/funding the entity's operations. All those cash flows that are related to raising funds/finance for the business which normally include cash from issuance of equity/debt/, settlement of mature instruments etc.
So in the question the cash flows that relate to financing activities are as follows;
<em>issued common stock =$64000</em>
<em>paid cash dividend = $14600</em>
<em>settlement of note payable = $50000</em>
<em>payment to acquire treasury stock = $12000</em>
<em />
Cash flows from financing activities = $64000 -$14600 -$50000 -$12000
Cash flows from financing activities = -$12600
In this situation, the company is facing negative cash flows as company has received lower cash from financing and has paid/settled greater amounts.
<em>Note: purchasing of equipment is a cash outflow from investing activities and net income generated is a cash inflow from operating activities.</em>
