Answer:
The answers are the first and last sentence - "Storing and maintaining goods in a warehouse is a major cost in the distribution channel." & "Often, the retailer and manufacturer contribute to the expenses of store displays together, including end-of-the-aisle promotion."
Explanation:
According to Edmentum:
Warehousing: <u>In the distribution channel, storing and maintaining goods in a warehouse involves major cost.</u> Normally, wholesalers and distributors bear the cost of warehousing.
Delivery expenses: These expenses include the cost of transportation equipment, such as ships, trucks, and trains. Wholesalers usually use courier services to deliver goods to retailers.
Selling expenses: Retailers use various strategies to boost the sales of products in their stores. <u>Often, the retailer and manufacturer together contribute to the expenses of store displays, including end-of-the-aisle promotion.</u>
Answer: Stock in the local art supply company.
Explanation:
Helen can only make a capital gain on assets that she actually owns. She only manages the apartment building but does not own it so if she sells any property, it does not contribute to her capital gain.
The stock in the local art supply company is hers however so if the prices of the stock increased from when she bought it and she sells it, that would give rise to capital gain.
Answer:
receive less funding if they represent the riskiest operations of the firm
Explanation:
In simple words, the cost of capital is represented as weighted average and its represents the level or return expected by the investors and represents the level of risk of the firm on average. Therefore, managers tends to lift up or down this return depending upon the risk of the potential project to be taken.
Thus, if the average return will be applied for all projects then high risk projects will get less funding and low risk project will get excess funding.
Answer:
a. Compute the ratio of times-interest-earned.
times-interest-earned = EBIT / interest expense
- EBIT = $4,839,900
- interest expense = $2,210,000
times-interest-earned = $4,839,900 / $2,210,000 = 2.19
b. Compute the debt-to-equity ratio.
debt-to-equity ratio = total liabilities / total stockholders' equity
- total liabilities = $900,000
- total stockholders' equity = $400,000
debt-to-equity ratio = $900,000 / $400,000 = 2.25
