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3 years ago

Identify all relevant costs or revenue that are applicable to the decisions stated below:

Business

1 answer:

lapo4ka [179]3 years ago

3 0

Answer:

Contribution margin of product.

Selling price of supplier.

Interference with other production.

Explanation:

The selling price offered less the contribution margin will determinate if the order generates a positive contribution for itself

If that number is negative the order should be rejected. if positive then, the analysis continues:

Interference with other production, if the company has to renounc e to selling in another marker for this order then; the differenctial revenue should be considered as it's an opportunity cost.

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Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $12

Virty [35]

Answer: Unlevered firm Equity is worth $357,700,000.

Levered firm Equity is worth $283,700,000 going by the Modigliani-Miller Proposition I.

Explanation:

The Unlevered firm has no debt and so the value of it's equity can be calculated by simply multiplying shares outstanding by the market price.

= 4.9 million * 73

= $357,700,000

Unlevered firm Equity is worth $357,700,000.

Now according to Modigliani-Miller Proposition I, if a Levered firm and an identical Unlevered firm are not paying taxes, they should be of equal value.

This means that the Levered firm should have a value of $357,700,000 meaning that their equity should be that value minus the value of their debt.

= 357,700,000 - 74,000,000

= $283,700,000

$283,700,000 should be the value of their Equity going by the Modigliani-Miller Proposition I.

Calculating with their figures however gives,

= 3.2 million * 90

= $288,000,000

The market value of the Levered firm is more than it's value according to the Modigliani-Miller Proposition I.

This means that the Unlevered firm's Equity is UNDERVALUED and the Levered Firm's Equity is OVERVALUED.

4 0

3 years ago

Doug, a new manager, commented to a friend, "I am excited about different aspects of my new job. The company computers have ente

yuradex [85]

Answer:

Doug, the manager, referred to Data Science.

Explanation:

Data Science is a concept: high-end technology to statistics to make the analysis, management and understanding of both structured and unstructured data easier. Data science is applied to many fields, mostly to support the decision making. The person who conducts data science is called data scientist.

6 0

3 years ago

Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the

NNADVOKAT [17]

Answer: Option(d) is correct.

Explanation:

Given that,

Purchases a bond = $10,000

Bond pays at the end of the first, second, and third years = $400

Bond pays upon its maturity at the end of four years = $10,400

(i) Principal amount of this bond = $10,000

It is the issue price of the bond.

(ii) The coupon rate of the bond = $\frac{Interest\ Received}{Face\ value\ of\ bond}\times100$

= $\frac{400}{10,000}\times100$

= 4% per year

(iii) The term of this bond is 4 years, as it was matured after 4 years.

7 0

3 years ago

An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called

Genrish500 [490]

Answer: Discounts Lost

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4 years ago

How are nuclear weapons distinguished from conventional weapons?.

Lyrx [107]

Answer:

This quantitative difference between nuclear and conventional weapons means that if nuclear weapons were used, they would alter key features of warfare—in particular, its duration, the targeting of noncombatants, and even the military relationship between winning and losing sides in a conflict.

Explanation:

6 0

2 years ago

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