Answer:
- $74.64
- $57.42
Explanation:
1. Value of LRC's preferred stock
= Preference Dividend / Return on Preference share
= (11.8% * 100) / 15.81%
= 74.6363
= $74.64
2. Value of preference share when yield goes to 20.55%;
= Preference Dividend / Return on Preference share
= (11.8% * 100) / 20.55%
= $57.42
True, because they provide services such as management training and office space.
Answer:
NO EFFECT
Explanation:
Item 25 Mullis Corp. manufactures DVDs that sell for $5.00. Fixed costs are $28,000 and variable costs are $3.60 per unit.
Break Even Points units = Fixed Costs / Contribution per unit = 28,000 / ($5-$3.6) = 20,000 units
Mullis can buy a newer production machine that will increase fixed costs by $8,000 per year, but will decrease variable costs by $0.40 per unit.
Break Even Points units = Fixed Costs / Contribution per unit = 36,000 / ($5-$3.2) = 20,000 units
The purchase of the new machine will have NO EFFECT on Mullis' break-even point in units.
Answer:
Option (b) make-to-stock, assemble-to-order.
Explanation:
The reason is that the department A manufactures the product not B which means the make to stock is the primary function of Department A only. Once the necklaces are ready the Department B is ordered by the Department A to print names which is order dependent task and not associated with manufacturing (is associated with assembling). Hence the is the primary function of Department B is Assemble-to-order.
In market economies, firms rarely worry about the availability of inputs to produce their products because, in market economies, buyers of inputs know that consumers want to purchase the product.
<h3>What is a market economy?</h3>
A market economy refers to the economic system where the decisions regarding investment, production, and distribution to the customers.
In a market economy, the allocation of resources by the entrepreneurs across different businesses and production processes is determined by the profits they hope to make by producing output that their customers will value that entrepreneurs paid.
Therefore, C is the correct option.
Learn more about the Market economy here:
brainly.com/question/2343400
#SPJ1
