Answer:
C) Lower than desired prices, which increases their sales.
Explanation:
Answer:
23.08%
Explanation:
Future value =Present value*(1+r)^n
$4,000 = $3,250*(1+R)^1
$4,000 = $3,250*(1+R)
1+R = $4,000/$3,250
1+R = 1.230769
R = 1.230769 - 1
R = 0.230769
R = 23.08%
Answer:
Cost Per Unit Completed = $4.07
Explanation:
Materials & Conversion
Beginning WIP Cost $4,300
<u>Cost added in the period $109,700</u>
Total Cost of the Units $114,000
Equivalent Units of Production (EUP): Completed Units + Ending WIP Units
EUP Materials & Conversion= 27,000 + 5,000 x 20% = 28,000
Cost per Equivalent Unit: Cost of Units / EUP
Cost per EUP Materials & Conversion: $114,000 / 28,000 = $4.07
Answer:
They should not make the change because the price of the stocks will decrease.
Explanation:
the current price of the stocks using the perpetuity formula = dividend / required rate of return
current price with current capital structure = $5.64 / 0.123 = $45.85
if the company changes its capital structure by increasing debt, the price of the stocks will be
$5.92 / 0.136 = $43.53
since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.
Answer:
The correct answer is venture capitalists generally have an exit strategy
Explanation:
Venture capitalists are private individuals that make funds available to high growth startups in exchange for equity stake in the company.
Venture capitalists usually have an exit plan, in that their investment for short to medium term,as they intend to dispose their investment when it is most profitable to do so,with aim of reaping high returns overall on their initial investment.
Venture capital is not easy to obtain, as a business must show signs of high growth in near future to attract venture capitalists.
Venture capitalists do not invest in all forms of businesses as they only place their funds in selected business ventures