Answer:
250 units
Explanation:
Calculation to determine How much capacity do you need to buy for next round
Using this formula
Next round capacity needed=Current Forecast*Market growth rate
Let plug in the formula
Next round capacity needed=2500 units*10%
Next round capacity needed=250 units
Therefore How much capacity do you need to buy for next round is 250 units
Answer:
The firm's unleveraged beta is 1.0251
Explanation:
Hamada's equation is used to separate the financial risk of a levered firm from its business risk.
The Hamada equation:
Bu= Bl/(1 + (1 − T)(D/E))
Bl = 1.4
wd = 0.36
Tax rate = 35%
D/E = wd / (1 – wd) = 0.5625 = 56.25%
= 1.4/ (1+(1-0.35)(0.5625))
=1.4/ 1 + (0.65)(0.5625)
=1.4/1.36
= 1.0251
Answer:
Jensen company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales.
This statement is true
Explanation:
Contribution margin ratio is the ratio of contribution to sales. Since the contribution margin ratio is 45%, it implies that variable costs are 55% of sales.
Answer:
Corporate earnings are subject to double taxation.
Explanation:
A corporation can be defined as a business that is owned by its shareholders. These various shareholders have the responsibility of putting in place board of directors to supervise the daily activities of the organization.
The ownership of a corporation by shareholders is fully represented by their shares of stock.
Corporate form of business organization assures the owners of their personal asset protection. Various organisations operating in a corporate form find it easier to borrow money, this provides a wide opportunity for the growth of the company.
