Answer:
To maximize her profit, Jennifer should abandon the product.
Explanation:
To maximize the profit Jennifer should keep marginal benefit as higher as she can, this could happen keeping marginal revenue higher and marginal cost lower as much as she can.
In this case marginal cost is higher than the marginal revenue, which is resulting as a marginal loss. Each extra batch being sold will add a loss of $10 ($110-$120).
Jennifer should abandon the product because it will reduce the average marginal benefit or total profit gradually.
Answer:
A
Explanation:
because Short-term planning takes care of regular expenses in the near future
Answer:
Value of the call option using Black-Scholes Model is $3.47
Explanation:
d1 = 0.175
• d2 = -0.025
• N(d1) = 0.56946
• N(d2) = 0.49003
N(d1) and N(d2) represent areas under a standard normal distribution function.
Stock price: $40.00 N(d1) = 0.56946
Strike price: $40.00 N(d2) = 0.49003
Option maturity: 0.25
Variance of stock returns: 0.16
Risk-free rate: 6.0%
The Black-Scholes model calculates the value of the call option as:
V = P[N(d1)] – Xe^rt[N(d2)]
= $40(0.56946) – $40e^rt(0.49003)
= $22.78 – $19.31
= $3.47
Answer:
The correct answer is e. Legal-political.
Explanation:
Any law, order or administrative action of the Host Country resulting in the permanent and total cessation of the investment activities in the Host Country.
- Causing the loss of ownership of shares and related assets.
- Permanently depriving the company of the holding of foreign shares or its fixed and / or current assets, including retained earnings and collectible amounts between companies.
- Rendering of loans between bad companies made on foreign subsidiaries.
- Leaving the company legally obligated to pay loans made to the foreign subsidiary expropriated by third parties but guaranteed by their company. Rejection of the Contract by the Public Buyer (eg, Government)
