Answer:
the rate of return required by investors to incentivize them to invest in a company
Explanation:
In finance, the cost of equity is the Cost of Equity is the rate of return which an organization pays those that invested in equity. The organization uses cost of equity to check how attractive investments are.
It can be calculated by using the CAPM which is Capital Asset Pricing Model
Answer:
Pine Street should sell finished bookcases.
Explanation:
Differential analysis
Sell unfinished Process further Net income
Increase (decrease)
Sale price per unit 58.09 73.08 14.99
<u>Cost per unit</u>
Variable 37.97 44.61 -6.64
Fixed 10.12 10.12 0
Total 48.09 54.73 8.35
Net income per unit 10 18.35 8.35
So, the book cases should be sold after processed further.
Answer:
Xia Co.
1-a. The relevant costs for Xia Co. to make or buy the part:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
1-b. Xia should make the part. It will cost Xia $4.00 to make the component while it costs it $5.00 to buy. It should therefore, make the component.
Explanation:
a) Data and Calculations:
Price of buying component = $5
Cost of making component:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
b) The relevant cost for making the component is $4.00. The overhead cost based on 200% direct labor is not a relevant cost. It is an allocated fixed cost and must be incurred whatever decision is taken. By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.
Answer:
The answer is "Option D".
Explanation:
The amount accrued in the pension system until now 
Danger or security account proportion 
The percentage of the amount kept in a safe account 
Number of investment years owned by 
Risk-free return rate 
Combined total amount up to age 63 (formula for the current value) = 
The contribution is 
a year and the employer corresponds with the same amount for the pension plan.
Total annual contribution 
Risk-free or healthy account proportion
Amount invested annually 
Annual deposit amount (n) for years
Returns free of risk
An cumulative sum due to an annuity
Total amount accumulated in safe account 
of annuity
