Answer:
The correct answer is letter "B": is both a dollar amount rather than a percentage and uses a firm's weighted-average cost of capital.
Explanation:
The Economic Value Added metric helps the shareholders of a business to determine how their capital is performing against other potential investments using the <em>weighted-average cost of capital </em>for that purpose. It is also a useful calculation for companies to decide on the most economically valuable project to be pursued.
The economic value added is calculated by subtracting the opportunity cost of capital from the earnings of the company. <em>The result is given in dollar amounts.</em>
Answer:
19.) b, d
20.) d, a
21.) d, c
22.) a
23.) c
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Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
Answer:
Cost of equity= 10,50%
Explanation:
The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.
Cost of equity= (D1/P0)+g
D1= next year dividend (D0*
P0=actual price
g= growth rate of dividends
In this exercise:
D1=D0*(1+g)=0,90*1,07=$0,963
P0=$27,50
g=0,07
Cost of equity= 0,963/27,5+0,07=0,1051=10,50%
Answer:
c). the power of judicial
Explanation:
This was the first time such power was wielded by the Court.
