Question

1A. Which of the following does the revenue estimate depend on?

		Market share (%)
		Size of the market
		Price per good
		All

1B. What will be the value of Variable Costs if the production of the company is equal to zero?

		> 0
		= 0
		< 0
		None

1C. Which of the following is an equity financing?

		Retained earnings
		Commercial banks
		Non-bank lenders
		None

1D. Which of the following is a hybrid equity financing?

		Retained earnings
		Common stock
		Preferred stock
		None

Answer 1

1.A . Revenue estimation is based upon market share and size of the market along with prices for good.

Size of the market will tell about where expectation of the company about gain in the market share and the prices of of other competitors will also tell about range of fixation of price.

Correct answer is option (D) All.

B)when there is no production then the variable cost will be equal to zero and the fixed cost would be similar even if there would have been production.

Correct answer would be option (B)0

3.retained earning is a part of the profits which has been incurring to the equity shareholder and it is a part of the equity financing.

Other options are incorrect because they are debt financing.

Correct answer option ( A) retained earning

D).preferred stock is an example of hybrid security because it has component of both debt financing and equity financing as it is a part of equity and it also has a fixed dividend payment.

Other options either equity financing or debt financing.

Correct answer would be option (C) preferred stock.