Answer:
Let's say that the product is basic ibuprofen (Advil) pills. Since the product belongs to the pharmaceutical industry, it is required to have structured and often quality checks. Also, the product's structure or recipe can be easily changed by demanding guidelines (FDA). What's more, defects are very common if a certain substance goes over (or below) the required percent in the process.
Batch production is the best production method to use here, as it is basically production in groups (batches), where frequent control is provided. Also, in the case of a potential recall, it is easy to map the troublesome batch (due to the documentation, used materials and ingredients etc.).
Answer:
much <em>more </em>likely;
There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. - <em>Market power</em>
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. - <em>Externality</em>
Explanation:
<u>Property rights</u> are an incentive for individuals to create goods that are needed on the market. In other words, when a discrepancy between demand and supply occurs on a specific market, entities, businesses or individuals that create the goods are motivated to meet market needs through enforced property rights.
On the other hand, when there is a lack of property rights that regulate the market, <em>market failures</em> occur. Two common types of market failures include <em>market power</em> and <em>externalities</em>.
The car dealership example shows <u>market power</u> in practice, as the reigning company can dictate car prices.
The second example shows an externality, as there is evident influence (cost or benefit) on the third party, which they cannot change. People are affected (negatively) by smoke they did not create.
The statement about the relationship between interest rates and bond prices that is true is A. There is an inverse relationship between bond prices and interest rates, and the price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).
It should be noted that when there's an increase in the interest rate, the price of bonds will be low. also, a decrease in the interest rate will lead to a higher bond price.
At a particular interest rate, the price of<em> long-term bonds</em> fluctuates more than the price of short-term bonds. It should be noted that the relationship between the bond price and<em> Interest rate</em> isn't direct but rather inversely related.
In conclusion, the correct option is A.
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Answer:
0.2
Explanation:
The weighted average cost of capital (WACC) is calculated as below:
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E , where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
r_D: pre-tax cost of debt;
r_E: cost of equity;
t: tax rate
Rearrange above formula a bit, we get:
WACC = (D/A) x r_D x (1-t) + (1 - D/A) x r_E
Putting all the numbers together, we have:
10.9% = (D/A) x 8.9% x (1 - 38%) + (1 - D/A) x 12%
Solve the equation, we get D/A = 17% or D/E = 0.2
So, target debt−equity ratio is 0.2
Answer:
d. $18,900 unfavorable.
Explanation:
Direct labor efficiency variance = SR*(SH-AH)
18000 = SR*(63000-61500)
18000 = 1500 SR
SR = $12
Total standard direct labor cost for February = 63000*12= $756,000
Direct labor flexible-budget variance = $774,900 - $756,000 = $18900 Unfavorable
