Dell can fund this growth internally by:
- The $469 million increase in current liabilities serves as a source of funds.
- The estimated increase in net profits to $395 million is approximately $123 million.
- The short-term investment is assumed to be the same as in 1996, namely $591 million.
<h3>
What is funding?</h3>
- Business financing is a funding option that allows business owners to obtain business loans to cover expenses such as temporary cash flow interruptions, expansion projects, stock and equipment, and seasonal spikes in activity.
- Retained earnings, debt capital, and equity funding are the three major sources of corporate financing.
So, according to the given chart:
- As a result, an additional operating asset of $794 million is required to sustain growth.
- The $469 million increase in current liabilities serves as a source of funds.
- The estimated increase in net profits to $395 million is approximately $123 million.
- The short-term investment is assumed to be the same as in 1996, namely $591 million.
- As a result, we can confidently predict that growth will be funded internally.
Therefore, Dell can fund this growth internally by:
- The $469 million increase in current liabilities serves as a source of funds.
- The estimated increase in net profits to $395 million is approximately $123 million.
- The short-term investment is assumed to be the same as in 1996, namely $591 million.
Know more about funding here:
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Answer:
Option (b) is correct.
Explanation:
Given that,
Budgeted production (September) = 50,000
Direct labor time for producing each sneaker = 2 hours
Direct labor wages average = $15 per hour
Direct labor budget for September:
= Budgeted production of sneaker in September × direct labor time require for each sneaker × Direct labor wages average per hour
= 50,000 × 2 hour × $15
= $1,500,000
Therefore, the direct labor cost budgeted for September is $1,500,000.
Based on the scenarios, it will be very likely that the similarities are due to institutional isomorphism
In business, institutional isomorphism refer to a similarity of processes or structure of one organizations with the other because they've developed under the same constraints
hope this helps
Answer:
5.55%
Explanation:
risk premium = market rate of return - risk free rate
8.35 - 2.8 = 5.55
Answer:
The correct answer is True
Explanation:
In calculating the equivalent units with respect to labor,the physical units at the start of the period is multiplied by the percentage of completion.
In other words, the equivalent units is shown thus:
Equivalent units =100000 units*20%
Equivalent units =20000 units
This implies that labor has carried out 20% of the work required to transform the 100000 units into finished products,since only 20% work is completed, the remaining 80% is expected in the next period.
