Answer:
The contribution margin ratio will increase.
Explanation:
Giving the following information:
BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.
Contribution margin ratio= (selling price - unitary variable cost)/selling price
New Contribution margin ratio= (120 - 58)/120= 0.52
Old Contribution margin ratio= (120 - 65)/120= 0.46
Answer:
The correct answer is letter "C": always.
Explanation:
Vulnerability management is responsible for the prevention, identification, and elimination of threats that might exploit vulnerabilities in a software system. After the threat has obtained unauthorized access, the threat will damage or destroy the software and no matter how big the software's weakness is, a threat will exploit it.
Answer:
market premium = 0,0781 = 7.81%
Explanation:
We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:
We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy
Calculations for boom:
Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)
0.25 x (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05
![\left[\begin{array}{cccccc}Stock&&B&A&C&Totals\\Weights&&0,45&0,45&0,1&&Boom&0,25&0,15&0,27&0,11&0,05&Normal&0,65&0,11&0,14&0,09&0,078975&bust&0,1&-0,04&-0,19&0,05&-0,00985&&&&&return&0,119125&\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccccc%7DStock%26%26B%26A%26C%26Totals%5C%5CWeights%26%260%2C45%260%2C45%260%2C1%26%26Boom%260%2C25%260%2C15%260%2C27%260%2C11%260%2C05%26Normal%260%2C65%260%2C11%260%2C14%260%2C09%260%2C078975%26bust%260%2C1%26-0%2C04%26-0%2C19%260%2C05%26-0%2C00985%26%26%26%26%26return%260%2C119125%26%5Cend%7Barray%7D%5Cright%5D)
market expected return 0,1191
Market premium: 0,1191 - 0,041 = 0,0781
Answer:
a) see attached image
b) Atlantis's opportunity cost of producing one helmet = 200 / 100 = 2 baseballs
c and d) Atlantis's opportunity cost of producing one baseball = 100 / 200 = 0.5 helmets
Zanadu's opportunity cost of producing one baseball = 100 / 400 = 0.25 helmets ⇒ Zanadu has a comparative and absolute advantage in the production of baseballs
e) yes, Atlantis would produce 100 helmets, and if it trades 50 to Zanadu, it will get 150 baseballs in return. So it will gain from trade. If Zanadu produces 400 baseballs and trades 150 of them for 50 helmets, it will also benefit.
Explanation:
Answer:
A.- DECREASE
B.- DECREASE
C.- INCREASE
D.- INCREASE
E.- INCREASE
Explanation:
a. The discount rate increases
DECREASE the discoutn factors will be higher therefore, the present values lower.
b. The cash flows are in the form of a deferred annuity, and the total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000
DECREASE Because the cashflow is generate on a longer period there is more exposure to discount rates.
c. The discount rate decreases
INCREASE The discount factor are lower. This situation is the opposite as (a)
d. The riskiness of the investment's cash flows <u>decreases</u>
INCREASE a lower risk derivates in lower cost of capital thus, lower iscount rates. This increase the present value of the cashflow.
e. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.
INCREASE as most of the future cash flows are at the beginning they have less exposure to time value of money.
