Answer:
weighted average cost of capital is minimized
Explanation:
Weighted average cost of capital (WACC) in accounting is the average rate of return a company is expected to compensate all its various investors by comparing its debt and equity structure.
The value of a firm is maximized when the weighted average cost of capital is minimized.
The formula to calculate the weighted average cost of capital (WACC) is:
WACC = ((E ÷ V) x Re) + (((D ÷ V) x Rd) x (1 - T))
Where;
Re=Cost of equity
Rd=Cost of debt
E=Market value of equity
D=Market value of debt
T=Effective tax rate
V=Total market value of combined equity and debt
Answer with Explanation:
There are so many factors affecting the demand for a particular commodity. Four of these are: the price of the complements, the income of buyers, changes in trend and advertisements.
1. The price of the complements - Some commodities are complementary with each other, just like cars and gas. If the <em>price of cars decreases</em>, then many people will purchase their own cars, which also follows that <em>the demand for gas will increase.</em>
2. The income of buyers - If the income of a person increases, then he will most likely purchase a particular commodity because he can afford it and has an extra money to purchase goods.
3. Changes in trend - Many people purchase goods because they're on trend. For example, if flare pants are fashionable this year, then the demand for it will increase. Once they're no longer on trend, the demand will drop.
4. Advertisements - The more advertisements a company spends on, the more likely buyers will purchase a specific commodity.
David works for Research organisation
Explanation:
"Research organisation" means an institution such as a university or research institute, regardless of their legal status or form of finance, the main objective of which is basic research, experimental development and the distribution of their results through education, publication.
Operational efficiency is improved by providing clarity to the staff at every corporate level. With the organisation of an effective structure, doctors can spend much more time caring for patients and receiving revenue for practical terms with the right people in every role.
Although various types of databases are available, the most common method used in medical care is OLTP(Online transaction processing). A health database replaces old paper documentation, file folders, and file offices. The data is now easier and quicker.
Answer:
c. $280,000
Explanation:
The computation of the cost of the direct material used is shown below:
= Beginning raw material inventory + Purchase of raw material - ending raw material inventory
= $32,000 + $276,000 - $28,000
= $280,000
Beginning raw material inventory + Purchase of raw material is also called the available raw material for production use
Hence, all other options are incorrect except C. option
Answer:
Answer for the question:
A company producing custom-made teddy bears is considering several options for expanding their existing capacity. There are 3 possibilities. The first is a low-end machine, which would take 10 minutes/bear for the (machined) manufacturing process. In addition, an average of 30 minutes of detail work would have to be done by hand (per bear). The second option is a high-end machine, which would take 8 minutes/bear, and reduce the amount of hand detail work to 25 minutes/bear. The final option is to subcontract out the bears. The subcontractor is willing to provide up to 400 bears per year for a flat fee of $2,000. Additional bears would cost $8 each. There is no difference in bear quality between the 3 options. It costs $10,000 to buy the low-end machine. Yearly maintenance is $1,000. The purchase price for the high-end machine is $15,000, while maintenance is $2,200. Management estimates the cost for running a machine at $6/hour. Labor costs are $15/hour. Assume the factory runs 350 days/year for 8 hours/day.a) If you expect a yearly demand of 12,000 bears, which option is the cheapest over a 3-year time horizon?b) If the service times on both machines are Exponentially distributed, and the job arrivals have a Poisson distribution with a rate as specified in part a), what is the expected time between the job's arrivals at the factory to the time it is complete and can leave? (Assume that there are more than enough workers to cover the hand detail workc) At what arrival rates (demand levels) would the different options make sense, given a 3-year time horizon?Please write down the answer step by step
is given in the attachment.
Explanation:
