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3 years ago

7

Financial risk applies to both the additional variability in earnings available to common shareholders and the additional chance

of insolvency caused by the use of financial leverage.
A) True
B) False

1 answer:

MAXImum [283]3 years ago

4 0

A, This is true for Financial risk

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For the year, Peggy Grey's Cookies had net income of $8,110. The firm paid out 30 percent of the net income to its shareholders

slamgirl [31]

Answer:

$2,933

Explanation:

The company had a net income of $8,110, and paid 30% of it to its shareholders, therefore:

$8,110 x 0.30 = $2,433.

But it also repurchased $500 worth of common stock, and this is to be distributed among the sharedholders as well, thus:

$2,433 + $500 = $2,933

8 0

3 years ago

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently

V125BC [204]

AFC mean average fixed costs. This is equal to total fixed costs divided by the amount of output. If the output is equal to 1000, then the AFC is

AFC = $250.00 ÷ 1,000
AFC = $ 0.25

I hope I was able to answer your question. Thank you and have a good day.

6 0

3 years ago

According to a book by a Harvard Business School professor, some organizational cultures simply cannot meet the challenges posed

vekshin1

Answer:

A) Adaptability

Explanation:

The company could not adapt to the current trends in the market. organizational adaptability is concerned with how firms could quickly adjust their business processes to changes that enhances their growth and make give them the ability to compete with rivals.

Many advantages are embedded in adjusting to the trend in the market, one of which is:

1. They value their employees

2. They have a well defined goals

3. They become more creative

4 0

3 years ago

Read 2 more answers

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat

ivann1987 [24]

Answer:

Cost per equivalent unit Materials = $ 2.82

Cost per equivalent unit Conversion = $2.65

Explanation:

Richards Corporation

1) We first calculate the fifo equivalent units .

FIFO Equivalent units can be calculated by the following.

Particulars Units % of Completion Equivalent Units

Mat. Con. Costs Materials C. Costs

Transferred out, 366,000 100 100 366,000 366,000

Ending inventory, 39,000 30 15 11700 5850

Total Weighted Equivalent Units 377,700 371,850

Less

<u> Beginning Inventory: 98,000, 80% 20% 78,400 18000</u>

<u>FIFO Equivalent Units 299,300 353,850 </u>

2) We calculate the total costs

Direct Materials Conversion

Costs in beginning Work in Process -$55,200 $97,700

<u>Costs incurred in October - $844,050 $937,300. </u>

Total Cost $ 899250 1035,000

<u />

<u>3) In FIFO The cost per unit is based only on the current costs and current period unit productions.</u>

Materials = $844050/299300= $2.82

Conversion = 937,300 / 353,850 = 2.6488= $2.65

8 0

3 years ago

Identify the detective control below.

Darina [25.2K]

Answer:

Reconciling the bank statement to the cash control account.

Explanation:

The reason is that the detective approach is the one which helps in identification of the errors in recording the facts and figure in a control system is the detective control. In this case, bank reconciliation helps in accessing the errors and entries that are not recorded in the books of accounts hence it is a detective control.

7 0

3 years ago