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Sedaia [141]
4 years ago
13

Chips Corp., has contacted Cierra with an offer to sell to Cierra 10,000 of the chips for $22.00 per chip. If Cierra accepts the

proposal, $50,000 of the fixed overhead will be eliminaShould Cierra make or buy the chips?
Business
1 answer:
anastassius [24]4 years ago
5 0

Answer:

Cierra should buy the chips

Explanation:

Buying the chips will eliminate $50,000 overhead cost she will incur if she makes it

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3 years ago
A government imposes _____ to increase competition in the marketplace.
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6 0
3 years ago
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When comparing a Variable Rate Demand Obligation (VRDO) to an Auction Rate Security (ARS), which statement is FALSE?
lozanna [386]

Answer:

Both have tender options.

Explanation:

Variable rate demand obligation and Auction rate securities both are long term bonds which have interest rate that reset weekly or monthly.  This advantages the issuer with lower short term rates despite of long term security. Both of these securities are subject to credit risk of the issuer and they are marketed by broker dealers.

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3 years ago
Vandermark Credit Corp. wants to earn an effective annual return on its consumer loans of 14.75 percent per year. The bank uses
gulaghasi [49]

Answer:

13.76%

Explanation:

The computation of the interest rate required by law is shown below:

As we know that

Effective annual rate = (1 + Annual percentage rate ÷ number of days)^number of days - 1

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(0.1475 + 1) = (1 + Annual percentage rate ÷ 365)^365

(1.1475)^ × (1 ÷ 365) = 1 + Annual percentage rate ÷ 365

So, the Annual percentage rate is

= [(1.1475)^ × (1 ÷ 365) - 1] × 365

= 0.1376

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A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 10%. Its overall cost of capital is14%. What is its cost of equit
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