Answer:
It is $9,450 (A)
Explanation:
Return on Investment = 40% * $ 45,000
=$18,000
Minimum Required Return = 19% *$ 45,000
= $8,550
Hence, Residual Income = $18,000-$8,550
=$9,450
Minimum required return represents the amount of returns that must be generated on investment to satisfy the expectations of providers of funds.
Residual income is what is left after dividends and interest have been paid to the various investors which can be retained for future investment.
Answer:
The Threat of New Entrants exerts a significant influence on the ability of current companies to generate a profit Gross Profit Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin
Explanation:
Owners of the company.
<h3>
What is a stock of a company?</h3>
- A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company.
- Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
<h3>What is an owner of a company?</h3>
- A company's "owner" is a person who owns all of the shares.
- In contrast, a "co-owner" shares ownership of a business with one or more partners.
- The owner, who is frequently the company's founder, is free to run their business however they like.
Therefore, Lorenzo and Lila are owners of the Double L Corporation.
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