If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80, how
1 answer:
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Answer: 11.05 %
Explanation: Required return can be defined as the measure of profitability of business in relation to its different types of securities such as equity, preference and debt.
In this problem we can compute return on equity by using following formula :-
11.05%
Answer:
The correct answer to the following question will be Option e (0 $ 200,000).
Explanation:
Residual dividend policy should be used for businesses that fund their capital needs by wealth earned at home. Such that, companies can make investments only if all investment requirements are satisfied by something like internal resources instead of moving to something like the marketplace.
Capital Budget = $2,000,000
Capital structure will be:
Debt = 40%
Equity = 60%
Income = $1,000,000
So let us measure the balance of our Expected Debt and Equity first:
Debt =
=
Equity =
=
As we know our income will be $1,000,000.
Then maybe we can have been using our inner income of $1,000,000 to funding everyone's capital requirement of $1,2000,000.
So,
Residual amount =
=
This suggests that our organization has to sell upwards of $200,000 shares of assets and therefore will not be capable to afford to pay some distributions yet. So that option e would be the right answer.