Operations management in the service sector has grown more rapidly than the manufacturing sector. Operations management is the implementation aspect of management.
Answer:
The answer is c.direct labor cost and overhead costs.
Explanation:
Conversion costs include direct labor and overhead expenses incurred in the process of converting raw materials into finished products
Answer:
cost of common equity = 14.46%
WACC = 11.29%
accept = Project A
Explanation:
Cost of common equity is the return that is required by Holders of Common Stock.
The available details can be used to calculate the cost of common equity using the Dividend Growth Model as follows :
Cost of common equity = (Next year`s Dividend / Current Market Price of a Stock) + Expected Growth
= ($2.20/$26)+6%
= 14.46%
WACC is the minimum return that a project must offer before it can be accepted.It shows the risk of the company.
Cost of Debt = Market Interest Rate × (1 - tax rate)
= 9.00% × (1-0.40)
= 5.40%
Capital Source Weight Cost Total
Debt 35% 5.40% 1.89%
Common Equity 65% 14.46% 9.40%
Total 100% 19.86% 11.29%
Therefore WACC is 11.29%
When evaluating projects, Compare the Project`s Internal Rate of Return (IRR) to the WACC.
<u>Project A</u>
IRR 12% > WACC 11.29%
Therefore Accept
<u>Project B/S</u>
IRR 11% < WACC 11.29%
Therefore Do Not Accept
It is not immediately unethical to employ someone under the age of 16, but if the workload of the child is that of an adult, it is not allowed. There are special laws that protect the health and safety of a young person in employment. The job of the child must be considered and must not be too heavy.
