Answer:
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Explanation:
Based on the information given the set of projects that should be accepted should be the project that has higher Internal rate of return (IRR) than the Weighted average cost of capital (WACC) percentage of 10.8% . Hence, the set of projects that should be accepted are: Project A,B,C,D
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Total $3,900,000
Based on the above we can see that Project A,B,C,D has a total of $3,900,000 which is higher than the retained earnings amount of $2,500,000.
Therefore the set of projects that should be accepted should be Project A,B,C,D
Answer:
Overhead absorption rate
= Overhead absorbed/Actual labour cost x 100
= $4,400/$800 x 100
= 550% of direct labour cost
Explanation:
Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.
Answer:
A cover letter is an important way to showcase how your unique combination of skills and experience meet the key requirements of the job description. It is your chance to show a clear link between your knowledge, experience and abilities and the needs of the employer.
Explanation:
Answer:
b. Debt ratio
Explanation:
The liquidity ratio includes the current ratio, quick ratio, etc
where,
Current ratio = Total Current assets ÷ total current liabilities
And, Quick ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not
Hence, option b is correct