Answer:
D. maximizing profit
Explanation:
Maximizing profit because maximizing wealth may also maximize expenses by a certain limit . Minimizing return or risk may not result in maximum profit.
Maximum profit may help the business to develop grow and have the best results. The primary objective of financial managers is to make the business and company more worthy to its owners employees etc. This is achieved by getting the maximum profits. The maximum profits in turn reward every person connected with the company.
Answer:
$17,835.90
Explanation:
Currently Hodgkiss is operating at 92% of its fixed asset capacity, so they have an spare 8% to grow without adding any more fixed assets: ($780,000 / 92) x 100 = $847,826.09.
So they need to add fix assets in to increase its production by $32,173.91 (= $880,000 - $847,826.09).
Every dollar spent in fixed assets generates at full capacity $1.8039 in production output (= $847,826 / $470,000).
If they want to increase production by $32,174, they will need to spend $17,835.90 in fixed assets.
Answer:
increase equilibrium price and quantity if the product is a normal good.
Explanation:
In the case of normal good there is a direct relationship between the income and the quantity demanded. That means if the income rises so the quantity demanded would also rised and if the income declines so the quantity demanded also fall
So as per the given situation if there is a rise in income so the equilibrium price and quantity would increased in the case when the product is a normal good
Answer:
ROE : Net Income / Equity : $32 / $92 = 34,8%
Explanation:
To calculate the ROE its necessary to know the Equity of the company which is the difference between the Total Assets and the Total Debt.
Total Assets : $485
Total Debt : $393
Equity : $92
Net Income : $32
ROE : Net Income / Equity : $32 / $92 = 34,8%
The ROE it's a measure that let me know the financial performance of the company, its a good indicator of how efficiently the company it's handling the investor's money.
Answer:
The correct option is option B which is the effective yield of the corporate bond is higher.
Explanation:
The complete question is not given so it is found online and is attached herewith.
In order to compare the tax free municipal yield to the taxable corporate yield, the two must be equalized.
So the equalization of the yield is given by
Here the Tax Free Yield is 11%
The Tax bracket is 28%
So the equivalent yield of the municipal bond is given as
Now the options are as below
A. The effective yield on the municipal bond is higher
B. The effective yield on the corporate bond is higher
C. Both effective yields are equivalent
D. The coupon rates for each bond are necessary to determine the effective yield
As the effective yield of municipal bond is 15.27% while that of the corporate bond is 16% so the correct option is option B which is the effective yield of the corporate bond is higher.
