Answer:
the fact that business firms make investment plans far in advance.
Explanation:
Usually businesses make investment plans years in advance. Imagine if a business plans to open a new factory, just the actual building of the facility may take over a year, plus the time it needs to set up machinery and start production. All that plus the time the company needed to analyze the project plus the time needed to get the money necessary to start the investment.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Annual contribution margin of $80,000 and $160,000 in annual fixed
costs.
Of the fixed costs, $50,000 cannot be avoided.
<u>To calculate the financial impact on income, we need to use the following formula:</u>
Effect on income= avoidable fixed costs - contribution margin
Effect on income= 50,000 - 80,000
Effect on income= -$30,000
Answer:
at the time it receives a negotiable warehouse receipt for the bats.
Explanation:
Benson Bearing Company is selling bats to Textron inc. The bats are stored at an independent warehouse not controlled by Benson Company.
Of the contract states that Textron will pick up the bats at the warehouse, the risk of loss passes to Textron when it recieved a negotiable warehouse reciept for the bats.
This is because the warehouse is not controlled by Benson Company and issuing a warehouse reciept is equivalent to delivering the goods to Textron.
He should use a business email and or tell them directly
Answer:
9.5%
Explanation:
The formula to compute the cost of common equity under the DCF method is shown below:
= Current year dividend ÷ price + Growth rate
In first case,
The current dividend would be
= Last year dividend + last year dividend × growth rate
= $0.80 + $0.80 × 8%
= $0.80 + $0.064
= $0.864
The other things would remain the same
So, the cost of common equity would be
= $0.864 ÷ $57.50 + 8%
= 0.015026 + 0.08
= 9.5%
