its not b. the periods net income to be understated
Answer:
a. sales figures
Explanation:
In the case when the design would be made with regard to management support system so it would be significant to remeber that the executives should not care for the sales amount or figures as they do not play any kind of role in the management support system.
So the same would be relevant
Hence, the correct option is a.
Answer:
The correct answer is A
Explanation:
Natural monopoly is the kind of monopoly which exists because of the high start up costs as well as the powerful economies of scale for conducting or performing a business in a particular industry.
And for this type of monopoly to exist , a firm or business need that the long run average cost curve will exhibit the economies of scale by the relevant range of the market demand.
Answer:
6,000 units
Explanation:
The beginning inventory units are calculated below
We know
Number of units produced = Budgeted units sold + ending inventory units - beginning inventory units
35,000 units = 32,000 units + 9,000 units - beginning inventory units
35,000 units = 41,000 units - beginning inventory units
So, the beginning inventory units would be
= 41,000 units - 35,000 units
= 6,000 units
Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
