The question is incomplete, it lacks options.
A. Producer to retailer to consumer
B. Producer to broker to wholesaler to retailer to consumer
C. Producer to consumer
D. Producer to agent to consumer
E. Producer to wholesaler to retailer to consumer
Answer:
Producer to retailer to consumer
Explanation:
Marketing channels can be described as the different mediums in which goods are made available to the consumers.
Selling through intermediaries is a marketing channel through which goods are supplied to the consumers through a middleman such as a retailer. These intermediaries helps a company to promote and sell their products in the market.
This type of marketing channel is known as an indirect channel of distribution.
Answer:
$665,500
Explanation:
The computation of ending retained earning balance is shown below:
The ending retained earnings balance = Opening retained earning balance - cash dividend declared - overstatement of inventory error + net income - stock dividend declared
= $539,000 - $119,000 - $39,500 + $344,500 - $59,500
= $665,500
We simply added the net income and the rest of the items are deducted to find out the ending retained earning balance
Answer:
The total turnover increases
Explanation:
Asset Turnover Ratio is a measure of how efficient the assets of a company is when compared with the company's sales or revenue. To calculate Asset turnover ration, the<u> net sales is set as a percentage of the company's total assets. </u>
The higher the turnover of the asset based on the calculation then the higher the chances that organisation is generating revenue efficiently from its assets. A lower turnover however is the implication that the company is not efficiently using its assets and it could imply some internal issues.
Therefore, the higher the sales without any change in assets means the Asset Turnover will increase or be higher and it will indicate higher efficiency
Answer:
WACC - new project = 6.408% rounded off to 6.41%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity
- rD * (1 - tax rate) is the after tax cost of debt
We first need to calculate the WACC of the company and then adjust it for the new project.
WACC = 35% * 3.28% + 65% * 10.4%
WACC = 7.908%
As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,
WACC - new project = 7.908% - 1.5%
WACC - new project = 6.408% rounded off to 6.41%
Using the Rule of 72, it would take 8.47 years to double at 8.5% interest.
The rule of 72 is very simple: divide 72 by the fixed interest rate to determine number of years it will take for an investment to double.
