Answer:
the cost of internal equity is 16.17%
Explanation:
The computation of the cost of internal equity is shown below:
= Yield of the bond + risk premium of the firm
= 10.28% + 4.95%
= 16.17%
Hence, the cost of internal equity is 16.17%
Basically we add the two things so that the cost of internal equity could be determined
Answer:
B) increase the risk a bank faces.
Explanation:
Off-balance sheet activities include all the bank's activities regarding assets, debts or other financing activities that are not presented in the bank's balance sheet, e.g. issuance of guarantees, commitments to make loans, etc.
Banks incur in this type of activities because generally they charge fees for them (increase revenue) without affecting measures of indebtedness like debt to equity ratio.
Answer:
d. is in the short run
Explanation:
In the short run, at least one factor of production is fixed. In this question, the kitchen area and sitting space are fixed. These represents the fixed costs.
In the long run, all factors of production are variable.
The variable cost in this question , is the cost of Labour.
I hope my answer helps you
Answer:
Material price variance = $25,000 Unfavorable
Explanation:
<em>A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite </em>
$
200,000 pounds should have cost (200,000× $4.50)= 900,000
but did cost <u>925,000</u>
Material price variance <u> 25,000</u>Unfavorable
Material price variance = $25,000 Unfavorable
