Answer:
The correct answer is A
Explanation:
Study of the cost behavior provides the useful information for determining the costs.Customer demand could not be predicted by paying the attention to how the costs varies or change when the activity changes. However, the costs could be estimated or determined and changes could be made to the production which is existing in order to maximise the profit for the business.
Answer:
D. underwriter
Explanation:
Based on the information provided within the question it can be said that the individual being described in the question is called an underwriter. Like mentioned in the question this is an individual who guarantees sale of securities and accept the financial risk of liability arising from the guarantee on behalf of the issuer of the securities in question.
Answer:
3.5%
Explanation:
We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:
Cost of equity = Risk-free rate + Beta x Market risk premium
Putting all the number together, we have:
Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%
Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%
Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%
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<em>Note: You can also do quick calculation as below:</em>
<em>Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%</em>
Answer:
Strategic Planning
Explanation:
Strategic plan accounts for long term <em>goals </em>and <em>vision</em> of a company. While planning strategically, leaders draw the road map for their company which solves <em>how-to questions</em> in achieving those goals. Moreover, through their set priorities, the company's <em>value</em> and <em>vision</em> would also be sorted out. As there are multiple planning dimensions, strategic planning can be differentiated from the others by identifying these 2 factors.
- Time Horizon: Strategic planning is done for the long term usually for 5-6 years.
- Formation of plan: Within the hierarchy of an organization only high-level leaders are the ones responsible to come up with strategic planning.
Answer:
A
Explanation:
real-balance effects do not have to so with the valuation of financial assets.