Answer:
0.7835 or 78.35%
Explanation:
Budgeted Sales = $90 per unit x 4620 units = $415,800
Break-Even Sales (Revenue) = 1000 units x $90 per unit = $90,000 units
Margin of safety = (Budgeted Sales - Break-Even Sales) ÷ Budgeted Sales
Margin of Safety = ($415,800 - $90,000) ÷ $415,800 = 0.7835 or 78.35%
The cost of equity is 10.6%.
<h3>What is the explanation?</h3>
The calculation of the question is shown as follows:
Cost of equity = Risk - free rate + (beta*market risk premium)
Cost of equity = 3.25% + (1.4* 5.25%)
Which is equal to 3.25% + (7.35%)
hence cost of equity is 10.6%.
<h3>
What are retained earnings?</h3>
Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.
To know more about retained earnings, visit:
brainly.com/question/13980094
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The complete question is:
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.
Based on the CAPM approach, what is the cost of equity from retained earnings?
Answer:
Selling through a consignment shop
Explanation:
Structural holes refer to a situation in which parties in a network are not able to interact.
A consigment shop is a store where you can take things to sell and the owner decides a price to pay and then, the objects are sold to someone else at a higher price and the owner gets a profit.
eBay is an online shopping site that allows people to sell things directly to buyers.
According to this, the answer is that the method of selling that can be argued to have more structural holes is selling through a consignment shop because buyers can't negotiate directly with the sellers which they can do in eBay.
Answer:
Option b is correct.
Explanation:
Option b is correct.
The sunk cost is the cost that has been incurred and which can not be recovered. Thus, anycost that can not be recovered is called the sunk cost. Therefore, the option 'b' that states pushing wrong button and getting a wheatgrass sandwich is the sunk cost because it can not be returned.
