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NEW QUESTION 22
The best discount rate to the use for evaluate of investment opportunities is the
- A. risk-free interest rate
- B. cost of the company’s debt
- C. average market interest rate
- D. opportunity cost of capital
NEW QUESTION 23
London Corporation has in the following cost structure for two of its product.
Assume that me current sales level is 15,000 units of Product A and 5,000 units of Product B Using cost-volume-profit analysis which of the following courses of action would maximize profit in the short term?
Assume that fixed costs are sunk costs in the short term.
- A. Discontinue making and selling Doth products
- B. Continue to make and sell both Product A and Product B
- C. Continue to make and sell Product B only
- D. Continue to make and sell Product A only.
NEW QUESTION 24
Below is the income statement and balance sheet for a retail corporation.
What is the corporation’s return on equity in Year 2?
- A. 23%
- B. 39%
- C. 48%
- D. 26%
NEW QUESTION 25
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