Answer:
The total firm value is $10,877 million
Explanation:
Value of Firm = Expected FCF/(WACC - Growth Rate)
= $1,005 million/(0.1386 - 0.0462)
= $1,005 million / 0.0924
= $10,877 million
Therefore, The total firm value is $10,877 million
Answer:The product margin for product M5 is $7,385
Explanation:
To calculate the product margin for product M5,
Processing 3,870 ÷ 9,000
= 0.43 per MH
Supervising 25,000 ÷ 1,000
= $25 per batch
To calculate the overhead cost for product M5
Processing 0.43 per MH × 500
= $215
Supervising $25 per batch × 500 batches
= $12,500
Total = $12,500 + $215
= $12,715
To calculate the product margin for product M5 under activity based costing
$
Sales. 95,400
Less:
Direct materials 32,500
Direct Labour 42,800
----------------
Prime Cost. 75,300
Add: Overhead 12,715
----------------
Total Cost of production. 88,015
-----------------
Product Margin. 7,385
------------------
Answer:
The answer is below
Explanation:
The graph is attached below.
a) The price elasticity of demand is given by:
price elasticity of demand = 

Price of elasticity demand = 
Price of elasticity demand = 
Since the price of elasticity demand > 1, it is elastic
b) Price of elasticity demand = 
Since the price of elasticity demand = 1, it is unitary
c) Price of elasticity demand = 
Since the price of elasticity demand < 1, it is inelastic
Answer:
a. A cost that is necessary for the overall operation of the business but not directly related to a contract
Explanation:
Option B - Allocable costs cannot be considered if the contractor is doing business with the government.
Option C - If the cost is exempted, it cannot be specifically allowable for a contract, or a cost that is beneficial to both the contract and other work.
Option D - Indirect costs cannot be allowable.
Option A - It is the right answer because allowable cost should be significant for the operations with an indirect relation with the contract. If it is linked with the overall operations, it can be considered as allowable to a contract.
Answer:
A) Does not change the money supply.
Explanation:
Demand deposits change the monetary base, because the monetary base equals currency plus demand deposits.
However, in itself, a demand deposit does not change the money supply. For the change in the money supply to occur, the bank must loan out some of the money in the deposit.