Answer:
A.selling common stock.
Explanation:
A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.
Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public. Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights. Shareholder earns dividends as a reward for providing capital to businesses.
Answer:
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Explanation:
Break even point in units in mathematical terms = 
= 
= 
= 1599 units
b) Using contribution margin
Contribution = Selling Price - Variable Cost = $650 - $450 = $200
Contribution margin = ( $200/ $650 ) X 100 = 30.77%
BEP = $319,700 / 30.77% = $1,039,000.025
Number of units = $1,038,999.025/$650 = 1598 units
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Answer:
Rational Motive
Explanation:
A rational motive is the willingness to make an action based on logical and rational criteria
Answer: $1,000
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore, the opportunity cost for operating a homeless shelter is the amount that is received by renting the space of shelter for wedding parties.
Opportunity cost = Average wedding parties per month × Rent per party
= 5 × $200
= $1,000
Answer:
Stated yield is 11.04%
expected yield is 5.78%
Explanation:
The expected yield to maturity can be computed using the rate formula in excel which is given below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay which is 13
pmt is the amount of coupon interest the bond pays which is $1000*10%=$100
pv is the current price of the bond which is $930
fv is the face value of $1000
=rate(13,100,-930,1000)=11.04%
However the expected yield has the coupon interest reduced to one -half as calculated below:
=rate(13,100*0.5,-930,1000)=5.78%
