Answer: redesign its products to eliminate those features that might have market appeal, but would excessively increase production costs.
Explanation:
The main aim of every organization are typically cost minimization and profit maximization. If I wanted to advise a company on the kind of actions to take to perform value chain activities more cost effectively, I'll tell them to improve their supply chain efficiency as well as use economies of scale and effective utilization of its resources.
Therefore, redesigning its products to eliminate those features that might have market appeal, but would excessively increase production costs is wrong as this will only lead to increase in cost.
Answer:
12.75%
Explanation:
Given that
Net assets value = $24.19
Dividend and capital gain distribution = $1.63
Offer price = $22.90
The computation of Holding period return is shown below:-
= (Net assets value + Dividend and capital gain distribution - Offer price) ÷ Offer price
= ($24.19 + $1.63 - $22.90) ÷ $22.90
= $2.90 ÷ $22.90
= 12.75%
So, for computing the holding period return we simply applied the above formula.
Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.
d. The Company's liabilities will increase by $30,000.
Explanation:
From the question, Foster, Inc., bought a truck by paying $5,000 and then borrowed the remaining $30,000 that was required to complete the transaction.
Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000
The covenant whereby one warrants that he is the possessor and owner of property being conveyed is the covenant of seizen.
A covenant is a two-party promise, agreement, or contract. The two parties agree that certain activities will or will not be carried out as part of the covenant.
Covenants in finance typically refer to terms in a financial contract, such as a loan document or bond issue, that specify the maximum amount that the borrower can lend. In religion, covenants frequently convey the binding relationship between a deity and humanity.
Covenants are frequently expressed in terms of financial ratios that must be met, such as a maximum debt-to-asset ratio or other such ratios. Covenants can cover anything from minimum dividend payments to working capital levels that must be maintained to key employees remaining with the company.
Learn more about covenants here:
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Answer:
=1.25
Explanation:
Current ratio= current asset/ current liabilities
Current ratio= $5 million./ Current Liabilities
Cross multiply we have
But current ratio is 2.0
2= 5/ current liabilities
current liabilities= 5/2
=2.5million
Quick ratio= current Asset- inventory/current liabilities
1.5=( 5- inventory)/2.5
Cross multiply we have
1.5×2.5= ( 5- inventory)
3.75= ( 5- inventory)
inventory= 5-3.75
=1.25
Therefore, the firm's level of inventories is 1.25