Answer:
Alberich Jewelers
The gross profit that Alberich should report is 760.
Explanation:
a) Data and Calculations:
Cost of gold ring purchased first = $640
Cost of gold ring purchased next = $720
Cost of gold ring purchased recently = $750
Sale of one gold ring = $1,400
Using the FIFO method of inventory, the gross profit for the gold ring sold is based on the first gold ring purchased, as follows:
= Sales Revenue - FIFO cost of inventory
= $1,400 - $640
= $760
Answer:
Option A-First mover advantage
Explanation:
The first mover advantage is the advantage to the firm who first steps in to take the risks to ensure future benefits in the long term perspective. The particular example includes of TaTa company in India which has more than 90% of the market and was the first company in India that tried to meet requirements of every class of person, small and medium organization to large corporations. This increased production helped the company to gain economies of scale and the country import policies also though do helped the company.
Furthermore, here the advertising firm is not investing but is a means of investment for many investors which means it has no investment in the country and hence there are no forward integration and lateral diversification.
It can also be noted that the company was not transferring its technology in the state option E is also incorrect.
The unrelated differentiation comes when the firm offer its customers a uniqueness of product services which in this case can not be seen prominent. The company advertises similar to other advertises like the other firms and is not pursuing unrelated differentiation so the option C is also incorrect.
They wanted to ensure that the bill of rights was included in the constitution.
Answer:
WACC for A: 9.05%
WACC for B: 9.50%
WACC for C: 12.20%
WACC for D: 12.65%
Explanation:
WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)
Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%
Thus WACC for a division will be equal: 3% + 50% x ( 4% + beta of each Division x 9%).
Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.
Answer:
A. If the motor scooter is sold for $2.480, then the net present value (NPV) for the product will be zero.
Explanation:
As we believe that The break even point is the point where the organization has no income gained and no loss incurred While the present net value is the value that determines whether or not the projects will be approved after considering the discounted cost.
It means that if the original investment is less than the present value then the proposal is otherwise refused, the break even point is where the net present value is zero
Hence, the first option is correct
