Answer:
2. marginal revenue.
Explanation:
Marginal cost is the extra expense incurred as a result of or producing or selling an additional unit. For a profit-maximizing firm, marginal cost is important as it indicates the point at which production should stop.
Marginal revenue is the income generated by the sale of an extra unit. If the marginal revenue is greater than the marginal cost, a firm will make profits if it produces and sells an extra unit.
A profit-maximizing firm should continue production until the marginal cost equal to marginal revenue. The cost associated with producing the last item should match the income from that item. Further production will result in a loss.
Answer:
C. Preferred stockholders will receive the entire $300,000 and they must also be paid the remaining $20,000 sometime in the future before common stockholders will receive any dividends.
Explanation:
Preferred shares have preference over the common shares in respect of dividend. Since $300,000 is paid as dividend, the entire amount has to be paid to the preferred shareholders, as the total amount payable to them as dividend = $1,000,000 * 4 *8% = $320,000, which is more than the total dividend declared.
In addition, as the preferred shares have cumulative dividend preference the shortfall in any year is to be carried forward and paid in the year in which dividends are paid and that too before any dividend is paid to the common shareholders.
Answer:
industrial
Explanation:
Generally companies can focus on producing goods and services for final consumers (B2C market), for other businesses (B2B market) or for the different government levels (public contracts).
In this case, Keystone Foods focuses on business-to-business (B2B) markets since it provides intermediate goods to other companies that later processes them into final goods that are purchased by final consumers.
Answer:
Stronger organizational relationships
Explanation:
Effective listening enables individuals bro better understand each other and fosters collaboration.
When employees listen effectively to one another they build stronger relationships. This is important in organisations that have high diversity in the employee pool.
Also effective listening helps employees better understand customer needs and enables them to effectively meet customer expectations.
Most customer problems are easily solved when the employee listens carefully to what the customer is saying
Answer:
0.097 OR 9.7%
Explanation:
Cost of Equity using CAPM-
Re = Rf + Beta (Rpm)
where,
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Therefore,
Re = .06 + .9 (.04)
= 9.6%
Unlevered cost of equity:
ReU = Wd × rd + We × re
where,
ReU = Unlevered cost of equity,
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
re = cost of equity = 9.6%
Therefore,
ReU = 0.20 × 8% + .80 × 9.6%
= 9.28%
Levered cost of Equity:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 OR 9.7%
