I think the answer is A. I THINK the answer is A
Answer:
$810,000
Explanation:
The computation is shown below:
The increase in fixed cost is
= Salary of each sales representative × number of sales representatives hired
= $45,000 × 18
= $810,000
Now the increase in sales needed for break even is
= Increase in fixed cost ÷ Contribution margin ratio
= $810,000 ÷ 30%
= $2,700,000
As we know that break even sales is computed by dividing the fixed cost by the contribution margin ratio and we applied the same
Answer: A) need not disclose that fact to the clients
Explanation: An investment adviser representative need not disclose the fact that he/she uses third-party research to formulate portfolio to the clients and the reason is this: It is not necessary to disclose what sources an investment adviser representative uses as the basis for portfolio recommendations, and thus is never in violation of his fiduciary responsibility. However, if the third-party research used is to be distributed to his clients, then, proper attribution is required.
Answer:
8.30%
Explanation:
The weighted average cost of capital of the company is computed using the WACC formula below:
WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)
We=weight of common equity=50%
Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%
Wp=weight of preferred stock=20%
Kp=cost of preferred stock=6.00%
Wd=weight of debt=30%
Kd=after-tax cost of debt=4.50%
WACC=(50%*11.50%)+(20%*6.00%)+(30%*4.50%)
WACC=8.30%
