When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
<h3>
What is Net operating income?</h3>
- Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..
- Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.
- By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.
- After all costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses.
- Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.
Hence, When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
To learn more about Net operating income refer to:
brainly.com/question/15834358
#SPJ4
Answer: 9.03%.
Explanation:
Given: The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 percent.
Debt to equity ratio is .54
i.e. 
Adding denominator to numerator on both the sides, we get,
i.e. Weighted equity = 
From (i)
Adding denominator to numerator on both the sides we get,
Thus, weight of debt=
Now,
Weighted average cost of capital=(Weight of equity) × (cost of equity)+(Weight of debt)×(Cost of debt)×(1-tax rate)
Hence, the weighted average cost of capital is 9.03%.
Balance of payments is the difference in total values of all payments in and out of the country over a given period of time. It is the record of all financial transactions between the residents of a country and the other foreign countries. In this case, payments made by the united states does not include exports.
Answer:
Check the explanation
Explanation:
When it comes to journal entry, it involves keeping or making or creating records of whichever transactions either an Economic transaction or a non economic one. The transactions are scheduled in an accounting journal which reveals an organization’s credit and debit balances.
The diagram showing the journal entry for recording the issuance of the shares can be seen in the attached image below.
Answer:
<em>The answer is 60.</em>
Explanation:
<em>The First step in solving the example given, is to recall the following steps to be taken </em>
<em>The standard deviation of return on investment A =10%</em>
<em>The standard deviation of return on investment B =5%</em>
<em>The co-variance of returns both on A and B =.0030</em>
<em>The next step is as follows</em>
<em>co-variance = correlation </em>
<em>.0030 (.05 x .10) = 60</em>
<em>Therefore the correlation coefficient between the returns of A and B is 60</em>
