Answer:
c. $24.00
Explanation:
The computation of the target cost is shown below:
Target cost = Selling price - (Selling price × profit margin)
where,
Selling price = $30
And, the profit margin is 20%
So, the target cost is
= $30 - ($30 × 20%)
= $30 - $6
= $24
Basically, by using the above formula, we can find out the target cost after considering the selling price and the profit margin
Based on information available, as measured in 2008, about 60 percent of U.S. trade and 60 percent of European business is intra-industry trade.
<h3>What is intra-industry trade?</h3>
The intra-industry trade is a term used in describing the commercial activities that involve the exchange of related products about the same industry.
The intra-industry trade is common in international markets where related features are exchanged between countries.
Based on the information released in 2008, the intra-industry trade takes a massive part of the USA and Europe trade, with 60 percent each.
Hence, in this case, it is concluded that intra-industry trade is a common phenomenon in the international market.
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Options:
[A] The new client is a personal friend of the RR who will be in charge of overseeing the new account.
[B] The new client agrees to provide a real address of a home or business, even though he insists that all correspondence be sent to the P.O. Box.
[C] The new client submits a written statement stating that for convenience purposes, he only uses a P.O. Box for all correspondence.
[D] The new client tells the RR and the BOM that he has not yet established a place of residence in the area and that the P.O. Box is the only fixed address he can give.
Answer:
B
Explanation:
Unless the new client provides a real address (either home or office), the account cannot be opened. FINRA regulations do not consider a P.O. Box as an acceptable residential address. The RR can send all the correspondence to the P.O. Box if the client requests it, but the client must still provide a real home or business address.
Answer: D
Explanation: A capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This interweaving is most apt to result in firms accepting some negative NPV all-equity projects because changing the capital structure adds enough positive leverage tax shield value to create a positive NPV.An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.
In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost. As it can be difficult to pinpoint the optimal structure, managers usually attempt to operate within a range of values. They also have to take into account the signals their financing decisions send to the market.
A company with good prospects will try to raise capital using debt rather than equity, to avoid dilution and sending any negative signals to the market. Announcements made about a company taking debt are typically seen as positive news, which is known as debt signaling. If a company raises too much capital during a given time period, the costs of debt, preferred stock, and common equity will begin to rise, and as this occurs, the marginal cost of capital will also rise.
To gauge how risky a company is, potential equity investors look at the debt/equity ratio. They also compare the amount of leverage other businesses in the same industry are using on the assumption that these companies are operating with an optimal capital structure—to see if the company is employing an unusual amount of debt within its capital structure.
All of those alternatives are correct covered in possible approach for lowering economic exposure.
<h3>What do you imply through economic exposure?</h3>
- Economic exposure (publicity) to foreign exchange threat is the quantity to which the existing cost of a firm's predicted destiny coins flows is suffering from exchange fee changes. Economic publicity contains two coins float exposures: transaction publicity and running publicity.
- There are important troubles in economic publicity control. First, monetary publicity control need to cover the complete existence of a overseas funding project. Second, monetary publicity control need to cover all elements of commercial enterprise operations, along with the elements market, the product market, and the finance market.
<h3>What is the distinction among accounting publicity and economic publicity?</h3>
- Translation or Accounting Exposure: equals the distinction among uncovered property and liabilities. The trick is to determine what's uncovered and what's not. Sometimes referred to as stability sheet threat.
- Operating or Economic Exposure: Changes within side the monetary cost of an corporation because of an exchange fee change.
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