Answer:
The firm's cost of equity is C. 14.05 percent
Explanation:
Hi, we need to use the following formula in order to find the cost of equity of this firm.
Where:
r(e) = Cost of equity
rf = risk free rate
rm = Market rate of return
Everything should look like this.
So, this firm´s cost of equity is 14.05%
Best of luck
Answer:
Break-even sales = $800,000.
Explanation:
<em>The beak-even point is the units of products to be sold or number of customers to be served to enable a business to cover exactly its total cost from the revenue. At the break-even point, the business makes no profit or no loss because the contribution from sales exactly equals the total fixed cost</em>
<em>Break-even in sales revenue = Total fixed cost/Contribution margin</em>
<em>Contribution margin (%) = Contribution/ sales × 100</em>
= 160,000/640,000
= 0.25 × 100
= 25%
<em>Fixed cost = Contribution - operating income</em>
= 160,000- -( 40,000)
= 160,000 + 40,000
= 200,000
<em>Break-even point sales = 200,000/25%</em>
= $800,000.
Six hundred eighty nine (689)
One hundred four (104)
Answer: A. the sales price less the present value of the residual value
Explanation:
Sales revenue is calculated as the selling price less the cost of the commodity being sold. In this case the cost will be the value of the asset. The sales revenue will therefore be the selling price less the value of the asset when it is to be sold so the relevant value is the residual value.
Even though the residual value is unguaranteed, the current estimate will be treated as the value to be deducted from the selling price. The difference is what will be reported as sales revenue.
