Crises that are caused by volatile international financial flows are in large part PAYMENT advances in technology coupled with GREATER openness in financial market. This is because, financial capital is very volatile and technological advances has enhanced this volatility. Lack of transparency and poor and corrupted governance can intensify the crises.
Answer:
6.88 percent
Explanation:
The computation of the weighted average flotation cost is shown below:
= (Weightage of debt) × (flotation cost of debt) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (50% × 4.5%) + (5% × 7%) + (45% ×9.5%)
= 2.25% + 0.35% + 4.275%
= 6.88%
Simply we multiply the cost of each capital structure with its weighatge so that the accurate average can come
Answer:
A. 0.75
Explanation:
The computation of the capacity utilization rate is shown below:
= Actual output ÷ best operating level output
= 300 units ÷ 400 units
= 0.75
It shows a ratio between the actual output and the best operating level output through which the accurate rate can come.
Moreover, it also shows a relationship between the actual output and the best operating level output
Answer:
The correct answer is d. $0.31 per client-visit; $24,766 per month.
Explanation:
The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)
the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.
Variable cost per unit = (28920 - 28235) / (13400 - 11207)
Variable cost per unit = $0.31 rounded off to two decimal places
The fixed cost = Total cost - total variable cost
Taking 13400 activity,
The fixed component is = 28920 - (0.31 * 13400) = $24766 per month
Thus, the correct answer is d.