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Answer: d. Sell 210 shares and loan out the proceeds at 8 percent
Explanation:
Because the Firm wants to use a Debt to Equity Capital structure instead of an All Equity structure, she can lend money out at the company interest rate to NEGATE the conversion.
She can do this by selling 35% of her portfolio and loaning it out at 8%
35 % of her Portfolio would be,
= 0.35 * 600
= 210 shares
So she can sell 210 shares and loan at the proceeds at 8% to offset the Company's conversion
Answer:
d. the natural environment.
Explanation:
There are two business environment
The first one is microenvironment and the other one is the macro environment
The microenvironment refers to that environment that covers the business functions with respect to the general public, customers, competitors, employees, etc
While the macro environment refers to that environment that affects the business functions or its workings
It can be in various ways like
1. Political & legal
3. Social
4. Technological
5. Demographic
6. Economical
Answer:
Option (A) is correct.
Explanation:
Given that,
Estimated fixed cost = $288,000
Estimated variable cost = $14 per unit
Units expects to produce and sell = 60,000
Selling price = $20 per unit
We first need to calculate the contribution margin:
Contribution margin per unit:
= Selling price - Variable cost
= $20 - $14
= $6
The break even point in units is the ratio of fixed cost to the contribution margin per unit.
Break-even point in units:
= Fixed cost ÷ Contribution margin per unit
= $288,000 ÷ $6
= 48,000 units