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Yakvenalex [24]
2 years ago
10

For capital budgeting and cost of capital purposes, the firm should always consider retained earnings as the first source of cap

ital (i.e., use these funds first) because retained earnings have no cost to the firm.A. True.B. False.
Business
1 answer:
zmey [24]2 years ago
8 0

Answer:

False

Explanation:

Even though the main reason why a corporation should hold retained earnings is to use them as a source of capital, it doesn't mean that retained earnings don't have any cost associated with them.

The cost of holding retained earnings is the rate of return that shareholders require on the corporation's stock.

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Marquese is making 10 pounds of trail mix from raisins and nuts. Raisins cost $3.45 per pound, and nuts cost $7.95 per pound. Ho
ladessa [460]

Answer:

Pounds of raisins = 8.78 pounds

Pounds of nuts =  1.22 pounds

Explanation:

  • Let X equal pounds of raisins
  • Let (10-X) equal pounds of nuts
  • Multiply by the costs for each and set it all equal to 10 pounds at $4/pound

$3.45X + $7.95(10-x) = 10 pounds *$4/pound

$3.45X + 79.50 - 7.95x = $40  

Now simplify the x variables on the left and subtract the dollar amount from the right:

3.45x-7.95x = 40-79.50

-4.5x= -39.50

Divide by negative 4.5 to solve for x

x= 8.78 (rounded)

Remember that x= amount of raisins and (10-x)= pounds of nuts

Pounds of raisins = 8.78 pounds

Pounds of nuts = (10-8.78) = 1.22 pounds

Notice that 8.78+1.22 = 10 pounds, so it all checks out!

3 0
2 years ago
Read 2 more answers
When Jorge became one of three final candidates for a managerial position with a large pharmaceutical company, the hiring manage
Leya [2.2K]

Answer:

D. realistic job preview

Explanation:

Jorge appreciated that the hiring manager took the time to provide a realistic job preview

3 0
2 years ago
Read 2 more answers
The future value of $200 received today and deposited for three years in an account which pays semiannual interest of 8 percent
yanalaym [24]
The formula is
A=P (1+r/k)^kt
A future value?
P present value 200
R interest rate 0.08
K compounded semiannual 2
T time 3years

A=200×(1+0.08÷2)^(2×3)
A=253....answer
7 0
2 years ago
Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5%
IRINA_888 [86]

Answer:

The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow

Explanation:

The computation of the cash flow from the operating activities for year 2 is shown below:

= Cash revenue in year 2 - interest on notes payable

= $950 - $1,800

= -$850

The negative amount shows an outflow of cash .

The interest on the note payable is computed by

= Borrowed amount × interest rate

= $36,000 × 5%

= $1,800

7 0
2 years ago
The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs
Blizzard [7]

Answer:

Controllable margin =$125,000

Return on investment = 20%

Explanation:

<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>

Controllable margin - Sales revenue - variable cost - controllable fixed cost

Controllable margin= $500,000 - $300,000 - 75,000 = $125,000

Controllable margin =$125,000

Return on investment = (controllable margin/ Average investment) × 100

                     = (125,000/625,000) ×  100 = 20%

Return on investment = 20%

3 0
2 years ago
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