Answer:
The discount rate should Honest Abe's use if it considers a project that involves the manufacturing of furniture is 12.46%
Explanation:
In this question, w e use the Capital Asset Pricing model method, which is shown below:
Expected return = Risk-free rate of return + Beta × market risk premium
= 3.5% + 1.12 × 8%
= 3.5% + 8.96%
= 12.46%
In this we use the Integral design beta not the Honest Abe beta
Answer:
The correct answer is C
Explanation:
CAC which stands for Command and Control Regulation, it is defined as the direct regulation which the industry or an activity through legislation states that what is permitted and what is illegal.
It requires the firms to install the anti pollution equipment and then increase the costs by reducing the output. It is successful in cleaning and protecting the US environment.
Answer:
See below
Explanation:
The percentage allocated to each socially responsible action
1. pollution control
Pollution control has been allocated is $37,000
As a percentage
= $37,000/$750,000 x 100
=0.0493333 x 100
=4.933%
2. Community project
community project has been allocated $22,500
As a percentage
= 22,500/750,000 x 100
=0.03 x 100
=3%
3. Employee fitness
The amount allocated to employee fitness is $7500
As a percentage
=$7500/$750,000 x 100
=0/01 x 100
=1%
4. The total amount spent is
=, $37,000 +$22,500 +$7,500.
=$67,000
Answer:
5000 in 1 year at 4% = $4,807.6923
9000 in 2 year at 1% =
Explanation:
We will calculate the present value of the loan at maturity
Maturity 5000
time 1
rate 0.04
PV $4,807.6923
Maturity 9000
time 2
rate 0.01
PV $8,822.6644
Answer:
Break-even point (dollars)= $219,000
Explanation:
Giving the following information:
Selling price per unit $270
Variable expense per unit $78.30
Fixed expense per month $ 155,490
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 155,490/ [(270 - 78.3)/270]
Break-even point (dollars)= $219,000
