A company has two different products that are sold in different markets. Financial data are as​ follows: Product A

Product B

Total
Revenue

​$16,000

​$9,300

​$25,300
Variable cost

​(8,000)

​(9,800)

​(17,800)
Fixed cost​ (allocated)

​(2,000)

​(2,100)

​(4,100)
Operating income​ (loss)

​$6,000

​$(2,600)

​$3,400
Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. If Product B is​ dropped, what would be the impact on total operating income of the​ company?
A.
decreases by​ $2,100
B.
increases by​ $500
C.
increases by​ $2,100
D.
decreases by​ $500

Why do police officers get paid less than professional baseball players?

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

According to management education expert ashok rao, companies can increase their profitability by through careful inventory management. a. 5% to 10% b. 10% to 25% c. 20% to 50% d. 75%