Answer:
Direct Labor 89,000
Factory overhead 63,000
Explanation:
The direct labor will be those employees which work with the product. The remaining of the labor are considered indirect as they cannot be identified with the manufacturing process but are necessary to perform such a process.
Strategic planning is an Analytical approach through which strategic choices can be assessed.
Answer:
Explanation:
Using YTM formula :
YTM = [PMT + {(FV-P) / n}] / [(FV+P)/2]
YTM = Yield to maturity = 14% = 0.14
PMT= Annual interest amount
FV = Face Value = $1000
P = Price =$1158.91
n = years to maturity = 10
0.14 = [PMT + {(1000 -1158.91) / 10}] / [(1000 +1158.91)/2]
0.14 = (PMT - 15.891) / 1079.455
PMT- 15.891 = 1079.455 * 0.14
PMT - 15.891 = 151.1237
PMT = 151.1237 -15.891
PMT = 135.23
So, Annual interest = $135.23
Annual interest rate = Annual interest / Face Value
= 135.23 / 1000
= 0.1352
=13.52%
Hence Annual Interest rate on the bond is 13.52%
Answer:Beta of the bond = 0.63
Explanation:
According to the CAPM, Capital Asset pricing mode formulae, The expected return is given as
Expected return= Risk free rate + Beta ( Market premium)
where
Expected return = 10.5 percent
Market risk premium =10.0 percent
risk-free rate is 4.2 percent.
Expected return= Risk free rate + Beta ( Market premium)
Putting their values and solving, we have
10.5% = 4.2%+ Beta (10.0%)
10.5 %- 4.2%=Beta (10.0%)
Beta=10.5 %- 4.2%/10.0%
Beta=0.63.
Beta of the bond = 0.63
Answer:
false
Explanation:
A franchise provides entrepreneurs with a shortcut way of starting a business without necessarily beginning from the scratch.
The entrepreneur is free to leverage on the trademark and the customer base of the franchisor. This eliminates part of the risk associated with starting an entirely new business.
However, the franchisee continues to pay royalty to the franchisor which makes the franchise arrangement quite expensive.