Answer:
The coefficient of variation for each of the four companies is:
- Treynor Pie Company = 0.25 (2/8)
- Gourmet restaurant = 0.16 (1.3/8)
- Baby food Company = 0.36 (1.8/5)
- Nutritional products Company = 0.16 (1/6)
Explanation:
In finance, the coefficient of variation is a statistical measure that represents the ratio of the standard deviation and the mean of a data series related to the return on investment. It allows investors to determine how much volatility, or risk, is assumed in comparison to the amount of return expected from investments. The lower the ratio of the standard deviation to mean return, the better risk-return trade-off.
Formula: CV=σ/μ
Where:
σ = standard deviation
μ = mean
"There are fewer close substitutes for the product your team supports" will improve your bargaining position with customers.
Option: B
Explanation:
Bargaining is the procedure which is preferred by citizens not only with street shops but it is famous internationally too, where defense, economic trade deal, etc are signed between two different nations to corporate and shake hand of unity. Bargaining is more effective when one allow seller to know that the party itself have more substitutes if the product is not provided by the seller in appropriate rate.
For an instance, if India need to buy some rolling defense helicopters for nation from Russia but prices are high and United States is providing same material with lower price or may be with better rewards on buying from them.
$15,000,000
Plant & equipment
60,000,000
Current liabilities
10,000,000
Long-term debt
40,000,000
Assume the book values of Falcon’s assets and liabilities equal their fair values. How much goodwill does Peregrine report at the date of acquisition?
$35,000,000
$40,000.000
$30,000
$0
Answer:
(It seems that the amount in question is wrongly typed as 65,000 instead of 65,000,000)
The correct answer is $40,000.000.
Explanation:
The answer is calculated from guidlines provided in IFRS 10.
As per accounting standards the price paid above fair value of net asset is taken as goodwill. Goodwill is accounted as asset in balance sheet.
As fair value is not given we will assume that book values are equal to fair value. The detail calculations are given below.
Consideration paid $ 65,000,000
FV of net asset ($ 25,000,000)
Goodwill $ 40,000,000
Answer:
As a result of the technology change, the price of pollution will be same as price of pollution with pollution permits.
The quantity of pollution with corrective tax will be lower than quantity of pollution with pollution permits.
Explanation:
The pollution permits are issued to reduce pollution by firms. The companies will reduce the pollution and will only be able to emit pollution up to certain limit. The price of pollution with corrective tax will be same as the price of pollution with pollution permits.
The change in technology will effect an increase in the price of pollution due to the increased cost of production factoring in the social cost of pollution, hence shifting the supply curve upward. The quantity of pollution will decrease as firms adopt cheaper technologies for pollution reduction influenced by the corrective tax policy and pollution permits.
The subject of your question is concerned with corrective tax policy and pollution permits in the context of a market economy under the influence of advances in technology. Under the original conditions before the social costs of pollution are taken into account, the equilibrium was met at a pollution price of $15 with a quantity of 440. However, once the external cost of pollution has been factored in, the supply curve shifts upward, creating a new equilibrium at a price of $30 and a quantity of 410, indicating an increase in the cost of pollution and a decrease in its quantity.
These policy instruments (corrective tax and pollution permits) induce companies to invest in technologies that reduce pollution higher costs of pollution as a result of the corrective tax motivate firms to seek cheaper technologies for pollution reduction. Those with less costly ways of lessening pollution will do so to reduce their tax expense, while those who would incur large costs in doing so would opt to pay the tax. The option of pollution permits introduces a marketplace where firms can purchase the right to pollute, the cost of which is again a motivator for firms to reduce pollution. Consequently, the demand for pollution permits among firms will influence their pricing. Firms that can reduce pollution at lower costs will do so the most. With no change in demand for pollution permits or corrective tax policies, the price of pollution will change as a result of the conditions set by these policies, and the quantity will change according to the adoption of more efficient technology.
#SPJ11
Answer:
3.703716
Explanation:
The duration can be calculated by dividing the present value of cash flow over time by the present value of cashflow.
Time Cash flow PV of CF PV of CF X t
1 60 $59.41 $59.41
2 60 $58.82 $117.64
3 60 $58.24 $174.71
4 1060 $1,018.64 $4,074.56
Total $1,195.10 $4,426.30
Duration = 4426.30/1195.1
Duration = 3.703716
Answer:
Break-even point (dollars)= $300,000
Explanation:
Giving the following information:
Variable cost ratio 80%
Total fixed costs $60,000
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
contribution margin ratio= 1 - 0.8= 0.2
Break-even point (dollars)= 60,000 / 0.2
Break-even point (dollars)= $300,000
Answer:
move along upwards
shift out
shift in
Explanation:
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
When the price of corn increases, the quantity supplied of corn increases. this is in line with the law of supply.
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
This would lead to a movement up along the supply curve
If the price of seed which is an input to corn decreases, it becomes cheaper to produce corn. As a result, the supply of corn would increase. this would lead to an outward shift of the supply curve.
If the number of grocery stores decreases, there would be a reduction in supply. As a result, the supply curve would shift inwards