The answer is <u>"the company is practicing capital rationing".</u>
Capital rationing is the demonstration of setting limitations on the measure of new speculations or ventures attempted by an organization. This is practiced by forcing a greater expense of capital for venture thought or by setting a roof on explicit parts of a financial plan. Organizations might need to actualize capital apportioning in circumstances where past returns of a venture were lower than anticipated.
Capital rationing is basically an administrative way to deal with dispensing accessible assets over numerous venture openings, expanding an organization's main concern.
Answer:
nominal interest rate = 4% annual
effective interest rate = 5.56% annual
Explanation:
the bond's nominal rate is basically the coupon rate
to calculate the bond's effective interest rate we must calculate its yield to maturity:
YTM = [coupon + [(face value - present value) / n]} / [(face value + present value) / 2]
- coupon = $1,000 x 4% x 1/2 = $20
- FV = $1,000
- PV = $800
- n = 40
YTM = [20 + [(1,000 - 800) / 40]} / [(1,000 + 800) / 2]
YTM = 25 / 900 = 2.777 semiannual ⇒ 5.56% annual
To find the gross profit margin found by:
(revenue - cost of goods sold)/revenue
Revenue = $62,275
Cost of goods sold (purchase price) = $26,500
= (62,275 - 26,500)/62,275
= 35,775/62,275
= 0.57 x 100
Percentage of gross profit = 57%
Answer:
fetching and holding materials
moving materials between work areas
keeping records
cleaning machinery
Explanation:
These are correct on edge
