Answer:
Option A Current Ratio
Explanation:
The reason is that current ratio gives information from which source of finance the working capital is funded from. If the answer is below 1 then the short term liabilities are used to finance the short term assets. This also tells whether or not the company possesses enough cash and cash equivalents to fund its future cash needs by comparing its result with past data and the industry average. So the right option is option A.
Answer: AGREE
Explanation:
A Monopoly faces no competition and are the only sellers of the product they sell. If firms in an industry successfully engage in collusion, the resultant effect will definitely be not unlike a Monopoly because they will set prices as a single firm, control output as a single firm and essentially run the market as a single firm.
They will sell at a rate where the Marginal Revenue curve will be below the demand curve. This will mean a higher price than a competitive market which was probably the main incentive for collusion.
A recent example would be the collusion between BMW, Daimler and Volkswagen, to hinder technological progress in improving the quality of vehicle emissions in order to reduce the cost of production and maximize profits. Thankfully this was busted by the European Commission in 2019.
Answer: 12%
Explanation:
In calculating the Required Rate return, we add the Nominal Risk Free rate to the market premium like so,
Required Rate of Return = Nominal Risk Free rate + Market Premium.
We have the Market Premium, now we need the Nominal Risk Free rate.
As you may or may not know, the Real Risk Free rate is just the Nominal rate adjusted for inflation by subtracting it.
To get the Nominal rate therefore we add back inflation,
Nominal Risk Free rate = Real Risk Free rate + Inflation
= 3% + 4%
= 7%
Now going back to the original formula we have,
Required Rate of Return = Nominal Risk Free rate + Market Premium.
Require Rate of Return = 7% + 5%
=12%
The required rate of return for Everest Expeditions Inc. is 12%
The SG&A Expense/Sales is the tertiary ratio that drives profitability.
<h3>What is
SG&A Expense/Sales?</h3>
This refers to the everyday operating expenses of running a business that are not included in the production of goods or delivery of services.
As the SG&A includes rent, salaries, advertising, marketing expenses etc., it is the tertiary ratio that drives profitability.
Therefore, E is correct.
Read more about SG&A
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Answer:
Explanation:
Please have a look at the attached photo below
We know the formula of the price elasticity of demand:
<em>percentage change of quantity demanded/percentage change of price </em>
Given:
- P1: $2.65 => D1 (quantity sugar-free gummy bears) = 181 and O1 (quantity ordinary gummy bears) =485
- P2: $3.05=>D2 (quantity sugar-free gummy bears) = 157 and O2 (quantity ordinary gummy bears) =273
So:
= %ΔD / %ΔP
= (ΔD/
(D1+D2) ) / (ΔP/
(P1+P2))
= (181-175) /
( 157+181 ) : (3.05 -2.65)/
( 3.05 +2.65 )
=
:
= 0.24
= %ΔO / %ΔP
= (ΔO/
(O1+O2) ) / (ΔP/
(P1+P2))
= (273-485) /
( 273+485) : (3.05 -2.65)/
( 3.05 +2.65 )
=
:
=- 3.9