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kakasveta [241]
3 years ago
8

A firm will borrow long-term

Business
1 answer:
Evgen [1.6K]3 years ago
6 0

Answer:

A. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.

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1. Production and DM budgets: Stolen Horse, Inc. manufactures and distributes toy dinosaurs throughout the Western United States
Yanka [14]

Answer:

Check the explanation

Explanation:

RAW MATERIAL PURCHASE BUDGET    

                                         July             Aug  Sep  Total  

Budgeted

Production units  64,000  97,200  1,05,200  2,66,400  79,200

RM required per unit   4  4  4  4  4

Total

RM requirement  2,56,000 3,88,800  4,20,800   10,65,600  3,16,800

Add: Desired

Ending Inventory  1,55,520 1,68,320 1,26,720  1,26,720  

Total needs   4,11,520  5,57,120  5,47,520  11,92,320  

Less: Beginning

Inventory        96,000  1,55,520  1,68,320  96,000  

Purchase Units  3,15,520  4,01,600  3,79,200  10,96,320  

Kindly check the attached image below to see the well arranged accounting entry.

6 0
3 years ago
Data concerning Follick Corporation's single product appear below: Selling price per unit $ 270.00 Variable expense per unit $ 7
kumpel [21]

Answer:

Break-even point (dollars)= $219,000

Explanation:

Giving the following information:

Selling price per unit $270

Variable expense per unit $78.30

Fixed expense per month $ 155,490

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 155,490/ [(270 - 78.3)/270]

Break-even point (dollars)= $219,000

8 0
3 years ago
State licensing helps ensure that professionals
Bingel [31]

Answer:

are qualified in there industry

Explanation:

that's what my quiz said was right

7 0
3 years ago
If aggregate supply is vertical, then which of the following statements must be true?
never [62]

Answer: A. Aggregate demand does not affect the quantity of output.

Explanation: Aggregate supply curve is perfectly vertical in a long run, Economist believed that the changes in aggregate demand only caused a temporal change in an economy output

Aggregate supply in a short run, the quantity supplies increase as price rise.

Aggregate demand does not affect the quantity of output If the aggregate supply is vertical.

6 0
3 years ago
A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%.
ArbitrLikvidat [17]

Answer:

The value of the stock today is $20

Explanation:

Using the CAPM equation, we first calculate the required rate of retunr on the stock.

The equation for CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the risk premium on market
  • Beta * rpM is the risk premium on stock

r = 0.05 + 0.04

r = 0.09 or 9%

The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,

P0 = Dividend / r

P0 = 1.8 / 0.09

P0 = $20

3 0
3 years ago
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