Answer:
b. 12.24%
Explanation:
The computation is shown below;
The cost of debt is 11%
As when the bonds would be sell at par value so yield to maturity = coupon rate = cost of debt i.e. 11%
Now
cost of equity= ((Do × (1+g)) ÷ P)+g
= (($2.05 × (1 + 7%)) ÷ 27) + 7
= 15.12%
Now
WACC = weight of equity × cost of equity + weight of preferred equity × cost of equity + weight of debt × cost of debt × (1 - tax rate)
= 55% × 15.12% + 5% ×12.4% + 40% × 11% × (1 - 25%)
= 12.24%
Answer: a. always declines with increased levels of output.
Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.
Answer:
The correct answer is A
Explanation:
There is a direct relationship among the adequacy of the internal control as well as the ability of the auditor to rely on the procedures of the substantive analytical. When the entity does not have the efficient internal controls, then the auditor will rely on the procedures.
There is an inverse relationship among the RMM ( stated as risk of the material misstatement) as well as the ability of the auditor to rely on the procedures. And high RMM states that the internal control cannot be relied on to detect the material misstatement on the financial statements, which cause the auditor to rely on the tests of controls.
And there is a direct relationship among the predictability of the relationships among the data and the ability of the auditor to rely on the procedures. When the relationships are predictable, then the auditor could create a meaningful expectations which cause the procedures to be more efficient in detection of material misstatement.
Answer:
strategy formulation
Explanation:
Strategy formulation is one of the key purposes of business and organisation meetings. The main purpose of meetings is to decide the company's direction to proceed further. It helps to attain the company's objectives and goals. In strategic formulation, strategic decisions are made to overview the opportunities, threats, weaknesses and strengths. Mostly the higher management, the board of directors and team leaders are called for such meetings.
I think building a better product would best fit the quote. Giving the best out of the product and if the consumers see how it would help them would make it to the market. Services is secondary if the product is really good then it would directly be seen by the consumers.
