Answer:
B) $50,000
Explanation:
Cost of Capital is the rate which is required by the capital investment by the shareholders or owners of the business. Residual Income is the portion of net income after paying the investors of the company. This income is reinvested or retained by the business.
Net operating Income after tax = $100,000
Average Invested Capital = $500,000
Cost of Capital = $500,000 x 10% = $50,000
Residual Income = Net Income - Cost of capital
Residual Income = $100,000 - $50,000
Residual Income = $50,000
Answer:
Answer is given below.
Explanation:
Preferred stock yield = dividend/ stock price
a) dividend =$1.81 , stock price =$30
Preferred stock yield = $1.81/$30= 6.033%
b) dividend =$1.81 , stock price =$25
Preferred stock yield = $1.81/$25=7.24 %
The answer is to lay out or include your business plan, it is because including your business plan is a means of showing your step by step or a way of showing a process towards the goals and the structure you want for your business in means of carrying out and attaining the things you want in your business.
<span>This is a modified premium life insurance policy. In this case, the premium (the price paid for the insurance during each time period) is fixed for a specific frame (at rates that are usually lower than average), but then (usually) increases after a certain number of months or years to a rate greater than the average.</span>
Answer:
Will increase to $460,000
Explanation:
Palmer Inc. currently produces 110,000 units at the rate of $440,000
Next year they are expected to produce 115,000 units
Since the cost is variable, the total cost can be calculated as
(440,000/110,000) × 115,000
= 4×115,000
= $460,000
Hence the total cost is $460,000
