The answer to this question is Risk;Resources
The risk levels will affect your choice in choosing the market because the higher the risk levels, the fewer competition you will tend to face.
The resource requirements, on the other hand, affect your choice by considering which product could be produced in your area that has a competitive advantage compared to other products
        
             
        
        
        
The answer to this question is "Moral Hazard". Hence I<span>f an individual and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior. this situation is known as a MORAL HAZARD. This is a belief of a company that they can pursue rewards without facing a problem or any issue.</span>
        
             
        
        
        
Answer:
Fractional Reserves
Explanation:
Banks are required to hold money to lend out. If you deposit $100 into your account that is $100 for the bank to lend that money out to ones who need it. 
 
        
             
        
        
        
Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
 
 
C	5.500 (100 x 11%/2)
time	60 (30 years x 2 payment per year)
rate	<em>0.052787474</em>
 
 
PV	$99.4338 
PV of the maturity
  
  
 Maturity   100.00 
 time   60.00 
 rate  <em>0.052787474</em>
  
  
 PV   4.57 
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity  $4.5662 = $104.0000 
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474	x 2 = 0.105574947
The cost of debt for the firm is 10.56%
 
        
             
        
        
        
Answer:
Amount of underapplied or overapplied overhead cost for the year 
$97000 - Underapplied
Schedule of cost of goods manufactured for the year
Direct Material                                3885000
Direct Labor                                      60000
Overheads                                       376000
Total Manufacturing Costs             4321000
Add Opening Inventory WIP           400000
Less Closing Inventory WIP            (700000)
Cost of Goods Manufactured         4021000
Explanation:
Amount of underapplied or overapplied overhead cost for the year
Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead
$473000-$376000= $ 97000
Schedule of cost of goods manufactured for the year
<em>Direct Materials  Calculation  </em>                                  
Opening                                                      200000
Add Purchases                                         4000000
Available                                                    4200000
Less Closing Material                                 300000
Materials Consumed                                  3900000
Less Indirect Materials                                 15000
Direct Materials Consumed                       3885000