Answer:
company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity
Explanation:
cost of equity = risk free rate + (beta x market premium)
risk free rate = 4.25%
market premium = market return - risk free rate = 11% - 4.25% = 6.75%
Company A's cost of equity = 4.25% + (0.7 x 6.75%) = 8.975%
Company B's cost of equity = 4.25% x (1.45 x 6.75%) = 14.0375%
this means that company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity.
Productivity of People and Resources
Employee training, equipment maintenance and new equipment purchases all go into company productivity. Your objective should be to provide all of the resources your employees need to remain as productive as possible.
Dealing with Change
Change management is the process of preparing your organization for growth and creating processes that effectively deal with a developing marketplace. The objective of change management is to create a dynamic organization that is prepared to meet the challenges of your industry.
Answer:
raw materials 197900
accounts payable 197900
WIP 161830
factory overhead 5270
raw materials 167100
WIP 85500
factory overhead 7600
wages payables 93100
factory overhead 53000
accounts payable 53000
factory overhead 17150
acc. Dep-equipment 17150
dep expense* 14800
acc. Dep- Off Building 14800
WIP** 70965
factory overhead 70965
Finished Goods*** 251747
WIP inventory 251747
Explanation:
* as the building is not related to the manufacturing process we cannot capitalized through inventory We will record as cost ofo the period therefore, depreciation expense
** the aplied overhead will be the amount of direct labor added during the period time 83%
85,500 x 83% = 85,500 * 0.83 = 70,965
*** we will have to add up the jobs cost to detemrinate how much of the work in process inventory becomes finished good
Job Materials // Labor // Overhead
A20 $ 37,740 $ 19,200 + 19,200 x 0.83
A21 $ 44,320 $ 23,600 + 23,600 x 0.83
A23 $ 41,770 $ 27,100 + 27,100 x 0.83
Total 251,747
A net worth statement, financial goals, and a budget are all part of a financial plan.
Answer:
D. The interest income will be greater in the third year than in the first year.
