If the several operational divisions were in significantly different risk classifications, distinct cost of capital estimates should be used for each division; using a single, overall cost of capital would be incorrect.
<h3>Why is it essential for businesses to calculate their cost of capital?</h3>
In economics and accounting, the cost of capital is the price a firm pays for its assets, or from the investor's point of view, the needed rate of return on a portfolio company's existing securities. It is used to assess a company's new ventures. The cost of capital is used by business executives to determine how much money new ventures need to earn in order to cover their initial costs and turn a profit. They also use it to assess the risk of future business decisions. Investors and analysts place a high value on the cost of capital.
The common issue encountered when assessing the cost of capital for a division is that its own securities are rarely traded on the market, making it impossible to monitor the market's appraisal of the division's risk.
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Before you could train as a physician, you first had to become, a SCRIBE
Not trying to be rude but that’s too much for too little amount of points
That’s technically an entire book page of reading
Answer:
A. 52% and $11 per unit
Explanation:
The contribution margin ratio is a measure of how much of a business revenue is available for covering its variable expenses. It also reveals how much is left to cover its fixed cost. The contribution margin is the unit income generated from each product sold. To calculate contribution margin ratio we divide contribution margin by sales. i.e
Contribution margin ratio = (contribution margin)/sales
Contribution margin = (sales - variable expenses)/sales
OR
contribution margin = (selling price - average variable cost)/ selling price
Since selling price is $21 and average variable cost is $10
contribution margin = (21 - 10)/21
= 11/21
=52.38% or 0.5238
Contribution margin = $21 - $10
= $11
thus, A. 52% and $11 per unit is the answer.
variable cost per unit also means average variable cost.
Applied methods corporation promises to provide stock options to Belden, a production designer, for processes he has already designed. This promise exists unenforceable.
<h3>What is a promise in Contract?</h3>
A contract is an enforceable legal arrangement that establishes, details, and regulates the rights and duties of the parties. The transfer of commodities, services, money, or a promise to transfer any of those at a later time are common components of contracts. All business is conducted through contracts, which are mutual agreements between two (or more) parties that, once signed, impose binding legal duties on each party. Simple solutions for this include purchasing something or offering a service.
A contract, however, is enforceable in a court of law. There are no legal ramifications for breaking a promise in the same way that there are for breaching a contract, yet persons of honor and high moral character try to fulfil their word whenever feasible. A promise or set of promises is referred to as a contract if the law recognizes a duty to perform them or if there is a legal remedy for their breach.
Hence, Applied methods corporation promises to provide stock options to Belden, a production designer, for processes he has already designed. This promise exists unenforceable.
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