They have oil qualifies. Although, oil accounts for 11 percent of Mexico's Exports, they both have very good amount of oil. They have 89 percent of total amounts of exports.
Answer:
Re = 15.29%
Explanation:
beta at current debt level:
11.5% = 5% + (beta x 6%)
6.5% = 6%beta
beta = 6.5% / 6 = 1.083
unlevered beta = 1.083 / {1 + [(1 - tax rate) x debt / equity]} = 1.083 / {1 + [(1 - 40%) x 25 / 75]} = 1.083 / 1.2 = 0.9025
cost of levered beta at 60% debt:
0.9025 = beta / {1 + [(1 - 40%) x 60 / 40]}
0.9025 x 1.9 = beta
beta = 1.7148
Re = 5% + (1.7148 x 6%) = 15.29%
Answer:
Option (D) is correct.
Explanation:
Expected Revenue = 30 Customers × 4 hours each × $31 per hour.
= $3,720
Actual Revenue = 40 Customers × 3.5 hours each × $31 per hour.
= $4,340
Increased Revenue = $4,340 - $3,720
= $620
Therefore, Cali's revenues for the month were 620 more than expected.
The answer is C, savings and loan institutions
Answer:
(a)
Mathematical Equation for break-even
F = QP - QV
Where
F = fixed cost
Q = Break-even quantity
P = Selling price
V = Variable cost
F = Q ( P - V )
Q = F / ( P - V )
Q = $327,030 / ( $630 - $300 )
Q = $327,030 / $330
Q = 991 units
(b)
Contribution Margin = Price per unit - Variable cost per unit
Contribution Margin = $630 - $300 = $330
Break-even Point in Units = Fixed Cost / Contribution margin per unit
Break-even Point in Units = $327,030 / $330 = 991 units
Explanation:
Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.
Contribution per unit method use the contribution of each unit to calculate the break-even point.
