Answer:
a. 5.40%
Explanation:
First, I will calculate the new cost of equity for both stock X and Y:
Required rate of return = risk free rate + (beta x market premium)
Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%
Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%
The difference between the required rate of return = 17.6% - 12.2% = 5.4%
Answer:
<em><u>Marketing</u></em><em><u> </u></em><em><u>research</u></em><em> </em><em>is marketing research to better describe marketing problems, situations, or markets such as the market potential for a product or the demographics and attitudes of consumers.</em>
<em>What </em><em>is </em><em>marketing</em><em> </em><em>research</em><em>?</em><em> </em>
<em>Marketing research is the process of designing, gathering analyzing and reporting information that may be used to solve a specific marketing </em><em>problem.</em>
Answer:
Part A. $1200
Part B. $1200
Explanation:
Part A.
Under MACRS rules, the depreciation rate for the 5 year recovery period asset would be:
Year 1 20%
Year 2 32%
Year 3 19.2%
Year 4 11.52%
Year 5 11.52%
Year 6 5.76%
This means that the first year MACRS depreciation deduction would be 20% which is $1200 ($6000 * 20%).
Part B.
If Sid does not elect Section 179 expensing then the depreciation would be calculated using straight line basis.
The depreciation would be:
Depreciaiton Expense = $6000 / 5 Years life = $1200
Resources is referred to as the available asset that can be used for
further purposes may it be for business or consumption. This is what
determines the balance between the production and consumption for
without these, production would not be possible and if nothing is
produced, nothing would also be consumed. Resources come in different
forms and each has its own availability. Answer for this would be C.
Answer:
- $ 80,000
Explanation:
The existing Power's profit margin is $0 ($41,700 - $41,700 + $0).
<u>Dropping Windsor division has the following effect :</u>
Increase in cost - opportunity cost of $ 80,000
<em>The opportunity is due to lost contribution </em>
Fixed costs are unavoidable thus, they are irrelevant when doing this calculation.
thus,
Power's profit margin will be - $ 80,000 if the Windsor division was dropped.
