Reuben Garza just graduated from high school and had begun a five year apprenticeship as a machinist. His starting wage is $8.25
1 answer:
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Answer:
additional sales without adding the Fixed assets are $228.85 million
so correct option is d) $228.85
Explanation:
given data
sales = $425,000,000
fixed assets = $270,000,000
capacity = 65%
to find out
how much could ABC Media's sales increase before it is required to increase its fixed assets
solution
we get here Sales at full capacity that is express as
Sales at full capacity = Actual sales ÷ capacity % ..................1
put here value
Sales at full capacity =
Sales at full capacity = $653846153.8
so sales without adding fixed assets will be
sales without adding fixed assets = Full capacity sales - Actual sales ............2
put here value
sales without adding fixed assets = $653846153.8 - $425,000,000
sales without adding fixed assets = $228846153.8
so that additional sales without adding the Fixed assets are $228.85 million
so correct option is d) $228.85
The company's cost of equity is % of retained earnings according to the capm.
The cost of equity for a corporation is the amount that the market is willing to pay to own an asset and take on ownership risk. The two common methods for determining the cost of equity are the capital asset pricing model and dividend capitalization model. On the right side of the balance sheet, you can see a list of the company's debt and equity accounts. The cost of capital refers to the price a business must pay to finance its operations through debt, equity, or a mix of the two.
b = rs = rRF + b(RPM), and rRF + b(RPM) =
% RPM
% were lent to us.
Learn more about cost of equity here
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