The optimal capital structure involves
A. maximizing the cost of all funds.
B. minimizing the cost of all funds.
C. using no financial leverage.
D. minimizing the weighted average of the cost of funds.
Answer: D
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Overturf, Inc., manufactures and sells two products: Product Y1 and Product Y0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct Y1300 6.0 1,800 Product Y0500 9.0 4,500 Total direct labor-hours 6,300 The direct labor rate is $27.50 per DLH. The direct materials cost per unit is $106.10 for Product Y1 and $168.40 for Product Y0.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product Y1Product
Y0TotalLabor-relatedDLHs$151,263 1,8004,5006,300Production ordersorders 43,253 300400700Order sizeMHs 863,478 4,9005,0009,900 $1,057,994 The overhead applied to each unit of Product Y0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) A. $1,322.49 per unit B. $1,511.46 per unit C. $1,137.72 per unit D. $872.20 per unit
Oral reporting skills are less important than report writing skills
Indicate whether the statement is true or false
The Good Housekeeping Seal of Approval is an example of a
a. trademark. b. service mark. c. collective mark. d. certification mark.
The management of Elamin Corporation is considering the purchase of a machine that would cost $365,695 and would have a useful life of 9 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $61,000 per year. The internal rate of return on the investment in the new machine is closest to (Ignore income taxes.):See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
A. 10% B. 12% C. 9% D. 11%