Answer:
Consider the following calculations
Explanation:
Expected pay off of investing 1000 in Rothko,LLC= probability of getting oil stock *increase in value ofstock= .37* 63% of 1000
= .37*630= 233.1
Similarly
Expected pay off of investing 1000 in Calder & co = .63* 37% of 1000= .63* 370= 233.1
Of investing 500 in each
Expected pay off= .37 * 63% of 500 + .63* 37% of 500
= .37* 315 + .63* 185= 233.1
Answer:
620 Unfavorable
Explanation:
Given that,
Direct materials (Standard Quantity) = 2.0 pounds
Direct materials (Standard Price) = $7.75 pounds
Units produced by company = 6,800
Materials quantity variance
:
= (standard quantity - Actual quantity) × standard price
= [(2.0 × 6,800) - (17,100 - 3,420)] × $7.75
= (13,600 - 13,680) × $7.75
= 620 Unfavorable
Answer:
so cost of capital = 9.9 %
correct option is a 9.9%
Explanation:
given data
capital structure = 40%
common equity = 60%
tax rate = 34%
pretax cost = 8.5%
pretax cost = 10%
market price = $59
Flotation costs = $3 per share
common stock dividend = $3.15
Dividends expected to grow = 7%
to find out
cost of capital if the firm uses bank loans and retained earnings
solution
cost of retained earning =
+ growth rate ........................1
cost of retained earning =
+ 0.07
cost of retained earning =0.1271271186
and
cost of capital will be
cost of capital = weight for debit × ( cost of debit × ( 1 - tax rate ) ) + weight for common stock × cost of common stock
cost of capital = 0.40 × ( 8.5% × ( 1 - 0.34 ) ) + 0.60 × 0.1271271186
cost of capital = 0.0987
so cost of capital = 9.9 %
correct option is a 9.9%
Answer:
The correct option is B,demand-based
Explanation:
Demand-based is the pricing strategy of hiking prices at busy at peak periods and charging modest prices at off-peak periods.
The reason for charging higher prices at peak periods the traffic at that time stretches the resources of the business,hence a little extra price is added as contribution towards maintenance of existing facilities and possible upgrade in the near future.
This approach is also known with telecommunication firms such as Vodafone and MTN.