The correct option is OA. Selling to another company the right to make and market a product line is called spinning off.
Create a new corporation that is independent of the previous organization by spinning off something, like a company. [Firm] He saved the organization and eventually separated its textile sector into a different business.
A corporate spin-off, often referred to as a spin-out, starburst, or hive-off, is a sort of corporate activity in which a corporation "splits off" a segment as a different business or establishes a second incarnation, even if the first is still operating.
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Answer:
7.38%
Explanation:
Calculation to determine what would be AJC's new WACC and total value
Using this formula
WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)
Let plug in the formula
WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)
WACC and total value=0.057+0.0168
WACC and total value=0.0738*100
WACC and total value=7.38%
Therefore would be AJC's new WACC and total value is 7.38%
Answer:
Please refer to the below
Explanation:
Journal entry as seen below
Feb 28 Sales tax payable Dr $975
Cash Cr $975
Since Jewelry store collected the sales tax from its customers, sales tax account will be debited because it reduces the balance in the account while cash account will be credited because the balance therein increases due to the sales tax collected.
Answer:
The correct answer is letter "D": the firm should change to a different line of business.
Explanation:
Economic profit is the difference between the revenue a firm earns from sales and the firm's total opportunity costs. It is important to distinguish between accounting profit and economic profit. Accounting profit is total revenue minus the explicit costs of producing goods or services. Economic profit includes the opportunity costs a company losses or gains by choosing a route to pursue revenue. If a firm has an economic profit of zero, it implies the company should start looking for alternative ways to generate income.
