The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.
- The premium approach does help to determine the value of an assetof a company's such as its traded equity.
However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
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Answer:
The order in which the following budgets are generally prepared are as arranged below:
1. Sales budget
2. Production budget
3. Material purchases budget
4. Budgeted income statement
In an attempt to expatiate the decision above. We must observe that income statement starts with revenue. Similarly here, the budget will starts with sales. The revenue section is followed by production budget which from which various budgets like material, direct labor and overhead budget are prepared from. After the Production budget, follow the Material purchase budget, then Budgeted Income Statement
Answer:
Reorder point
Explanation:
A company or organization making use of fixed-order quantity model which is a model where the REORDER POINT has been fixed and has already been set automatic in which once it reach the minimum inventory level it will remind the company that inventory level has reach the limit for the company to restore the stock inventory or order more product, which is why this inventory level is called the REORDER POINT.
Therefore REORDER POINT can be defined as the point which serve as a reminder that the stock inventory level has dropped to the minimum reorder level and need to be replaced or reorder.
Adam was unable to finish high school because he needed to go to work to help his family financially. This forms a Non-formative type of influence
This is further explained below.
<h3>What is a Non-formative type of influence?</h3>
Generally, The term "nonnormative effects" refers to those that do not affect each member of a set in the same manner. Nonnormative suggests it does not affect everyone in the same way in the culture, while normative suggests it does (or not at all).
In conclusion, Adam dropped out of school before he could graduate from high school because he had to start earning money to support his family. This is an example of a non-formative impact.
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Answer:
<em> Ethnocentrism causes us to judge others by our own values. </em>
<em> Ethnocentrism causes us to judge others by our own values. Ethnocentrism is the belief in the superiority of one's own culture. This belief is a natural attitude found in all cultures, and it causes us to judge others by our values</em>.
