MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as maximizing the_____: Multiple Choice A) book value of the firm. B) market value of the firm. C) liquidating value of the firm. D) profits of the firm
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If MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as maximizing the_____:
A) book value of the firm.
B) market value of the firm.
C) liquidating value of the firm.
D) profits of the firm.
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- A firm is thinking about consolidating its mobile battery assembly in one location. The leading candidate location has a monthly fixed cost of $50,000, and variable cost of $5 per battery. Mobile batteries sell for $10 each. a. Prepare a schedule showing total profits, fixed costs, variable costs, and revenues for quantities of 10,000 and 15,000 and 20,000. What is the breakeven point? b. If the factory was given the choice to buy the mobile battery from a factory charging $9 per battery, what is the indifference point?At the profit maximizing level of input use, Which of the following are true? (i) MVP=0 (ii) MVP=MIC (iii) MPP=MVP (iv) MVP=MVICMarginal cost function (C'(q)) and marginal yield function ('R(q)) to extract a smartphone is as follows in the figure where C'(q) , R'(q) are measured in RM/unit and q is quantity (units).The fixed cost of manufacturing such a smartphone is zero. With using the concept of integration, determine: a) the total cost to manufacture 4 units of smartphones. b) function of the total revenue for the smartphone. c)
- The cost of capital is a company's cost for using their own money. Group of answer choices True FalseBiwei decides to set up a small business in NYC. The start-up cost is $1000 for a license and the estimated direct cost is $4 per output. After one year, Biwei’s business becomes profitable. Sonia plans to enter the same business in thesame area. What would be the cost facing Sonia? Does she bear the same cost as Biwei?When deciding upon the optimal amount of capital, a firm will decide to purchase additional capital if (CV) When deciding upon the optimal amount of capital, a firm will decide to purchase additional capital if the cost of capital falls below the previous period's cost the marginal benefit of capital equals or exceeds the marginal cost of the capital the marginal benefit of capital is less than the marginal cost of the capital the additional capital will add necessitate hiring more labor
- Managerial Economics (Book Only) | 12th Edition Chapter 8, Problem 8PProblemMultiplant Operation. Appalachia Beverage Company, Inc. is considering alternative proposals for expansion into the Midwest. Alternative 1: Construct a single plant in Indianapolis, Indiana, with a monthly production capacity of 300,000 cases, a monthly fixed cost of $262,500, and a variable cost of $3.25 per case. Alternative 2: Construct three plants, one each in Muncie, Indiana; Normal, Illinois; and Dayton, Ohio, with capacities of 120,000, 100,000, and 80,000, respectively, and monthly fixed costs of $120,000, $110,000, and $95,000 each. Variable costs would be only $3 per case because of lower distribution costs. To achieve these cost savings, sales from each smaller plant would be limited to demand within its home state. The total estimated monthly sales volume of 200,000 cases in these three Midwestern states is distributed as follows: 80,000 cases in Indiana, 70,000 cases in Illinois, and 50,000…In Amazons choice of a Northern Virginia City as its second co- headquarter, its main deciding factor was likely i. that the city is low cost. ii. ease of hiring skilled labor on a large scale. iii. that the place is politically liberalEXAMPLE 1.1 Alpha Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find the break-even sales.
- Question 2. For a vending machine project, the site cost=5,000 SR/month, material cost=0.5 SR/unit, and insurance cost = 400 SR/month, the labor cost = 1,000 SR/month, unit price = 1 SR/unit, and electricity cost = 100 SR/month and = 0.1 SR/unit. a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and Total Profit at sales of Q = 25,000 units.Analyse the various issues which influence industry standards used in project costmanagement.A purely competitive firm has a single variable input L (labor), with the wage rate W0 per period. Its fixed inputs cost the firm a total of F dollars per period. The price of the product is P0. (a) write the production function, revenue function, cost function, and profit function of the firm. (b) What is the first-order condition for profit maximization? Give this condition an economic interpretation. (c) What economic circumstances would ensure that profit is maximized rather thatn minimized?