Answer:
The answer is B. Identify the company's competitors
Explanation:
In any given industry, there are always different companies in the business of pleasing the same customers, and the customers will invariably continue to do business with the company that exceeds their expectations.
That being said, any company that aims to out perform its competitors and please customers the most will carry out a Competitive Analysis. This analysis is carried out in order to determine the strengths and weaknesses of a company's competitor.
The first step in a competitor analysis is to identify the company's competition, both current and potential. This identification of competition is very important, because a company in the hotel industry can not compete with a company in the transport industry.
Answer:
True
Explanation:
The cost of capital or Weighted average cost of capital WACC determines firms cost of capital. It includes all sources of finance which are included in firms capital structure. The sources of finance can be borrowed funds, shareholders etc
The WACC is calculated with given formula:
WACC = E/V Re + D/V * Rd (1 - T)
Answer:
The answer is option ( C.) Increase of 1.06 percent
Explanation:
Data provided in the question:
Cost of equity = 14.6%
Market risk premium = 8.4%
Risk-free rate = 3.9%
Company's beta = 1.4
Now,
Expected Return = Risk-free rate + ( Beta × Market risk premium )
= 3.9% + ( 1.4 × 8.4% )
= 3.9% + 11.76%
= 15.66%
Therefore,
The change in firm's cost of equity capital = 15.66% - 14.6%
= 1.06%
Hence,
The answer is option ( C.) Increase of 1.06 percent
Answer:
$664,000
Explanation:
The computation of the budgeted total manufacturing cost is shown below:
Budgeted total manufacturing costs is
= Fixed cost + Variable cost
= $24,000 + ($16 × 40,000 linear feet of block)
= $24,000 + $640,000
= $664,000
We simply added the fixed cost and the variable cost so that the total budgeted manufacturing cost could come