Which of the following home purchasing considerations will probably affect older homebuyers the least ?

scanlon inc.'s cfo hired you as a consultant to help her estimate the cost of capital. you have been provided with the following

sp2606 [1]

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:

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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?

3 0

2 years ago

In the introduction stage of the product life cycle, marketing efforts are primarily focused on:

fiasKO [112]

<u>Answer:</u> building customer awareness of the product.

<u>Explanation:</u>

Introduction is the first stage in the product life cycle where the company focuses on creating customer awareness of the product. In this stage only a few customers will know about the product. Through better marketing campaign companies try to increase the customer awareness.

Only after creating brand awareness and publicity for the product the company can concentrate on other aspects such as pricing, distribution, additional features etc. The main aim of the companies is to gain the market share.

6 0

3 years ago

MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that

Ahat [919]

Answer:

1. The incremental profit from accepting the special order is $150.

2. Yes, MSI should accept the special order. This is because it will increase profit by $150.

3. The incremental loss from accepting the special order is $350.

4. The special order price at which MSI would be indifferent between accepting or rejecting the special order is $12.50 per unit.

Explanation:

Note that only variable costs are relevant to making decision on a special order. That is, fixed cost is not relevant. Therefore, we have:

Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead = $1.50 + $0.60 + $2.25 = $4.35.

We then proceed as follows:

1. Compute the incremental profit (or loss) from accepting the special order.

Incremental profit (or loss) = ((Special order price per unit - Total variable cost per unit) * Units of special order) - Modification cost = (($5 - $4.35) * 1,000) - $500 = $150

Therefore, the incremental profit from accepting the special order is $150.

2. Should MSI accept the special order?

Yes, MSI should accept the special order. This is because it will increase profit by $150.

3. Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.

Incremental profit (or loss) = ((Special order price per unit - Total variable cost per unit) * Units of special order) - Modification cost = (($4.50 - $4.35) * 1,000) - $500 = ($350), or –$350

Therefore, the incremental loss from accepting the special order is $350.

4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.)

This can be calculated as follows:

Modification cost per unit = Modification cost / Units of special order = $500 / 1,000 = $0.50

Special order price = Regular price + Modification cost per unit = $12 + $0.50 = $12.50 per unit

Therefore, the special order price at which MSI would be indifferent between accepting or rejecting the special order is $12.50 per unit.

8 0

2 years ago

In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb

Triss [41]

Answer:

d) as a current liability.

Explanation:

As in the given instance, the value of transaction is also known, further since the contract s signed the company has liability to buy the goods and accordingly the company has to incur such payment.

Since there will be an purchase for which payment will be made in future.

Therefore, this will give rise to current liability, although value of goods has decreased but still, there is a liability of payment.

5 0

2 years ago

You are hosting a concert to fundraise for charity. You have to sell tickets to this event in order to raise money. The expenses

dimaraw [331]

Answer:

$9

Explanation:

100+60+50+60=270 270÷30=9

3 0

3 years ago