Under normal conditions, a firm's expected ROE would probably be higher if it financed with short-term rather than with long-term debt, but using short-term debt would probably increase the firm's risk.
Option A
<u>Explanation:
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In business finance, the productivity of an undertaking, also defined as net assets or asset minus debt, is a calculation of its viability with respect to equity.ROE is a calculation about how well funds are used to produce increases in profits.
Companies are able to fund themselves with stocks and bonds. A business will raise its investment value by increasing the number of debt capital compared to its equity capital. There was a misunderstanding. Then you see that the new company has a better ROE because of its financial resources as you split the net income per shareholder's capital stock.
Answer:
Expl one year. To reorder, there is a fixed cost of $36, plus $11 for each storage device.anaMinimizing Inventory. An electronics store sells 100 digital storage devices per year. It costs $18 to store one storage device for one year. To reorder, there is a fixed cost of $36,tion:
Answer:
It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000
Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)
In alternative E) all $125,000 is lost
In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)
Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.
The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center
Answer:
So if you subtract the cost of everything for her bakery she still comes out with making 53,000, so if she left she would not earn any profit because she would be making the same.
