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nalin [4]
2 years ago
13

Xavier, a recent college graduate, is thinking of investing in a home health care business. he believes this will be a profitabl

e venture because of the increasing number of people in the u.s. that will be over 60 in the near future and more likely to need this type of service. this accurately describes a demographic trend that will affect his business choice.
Business
1 answer:
Shkiper50 [21]2 years ago
4 0
The above given statement is true because the business professionals study the demographic changes in their respective markets by scanning the social environment for opportunities and threats. Demographic changes can have a significant impact on business choices and career opportunities.  
When the number of consumers increases automatically the consumption of services and goods increases. This is the fact given in the above statement, so anybody planning invest should analyze the facts and foresee the trend to avoid endup in loss.
You might be interested in
The+ebit+of+a+firm+is+$300,+the+tax+rate+is+35%,+the+depreciation+is+$20,+capital+expenditures+are+$60+and+the+decrease+in+net+w
-BARSIC- [3]

Answer:

Answer:

$215

Explanation:

Eagles product has an EBIT of $400

Its tax rate is 30%

= 30/100

= 0.3

The depreciation is $16

The capital expenditures are $56

The planned increase in net working capital is $25

Therefore, the free cash flow to the firm can be calculated as follows

Free cash flow= EBIT(1-tax)+depreciation-capital expenditures- change in working capital

= 400(1-0.3)+16-56-25

= 400-120+16-56-25

= $215

Hence the free cash flow to the firm is $215

4 0
2 years ago
A stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock
Llana [10]

Answer:

a. The stock's price one year from now is expected to be 5% above the current price.

Explanation:

Under gordon model:

\frac{divends}{return-growth} = Intrinsic \: Value

If we calculate the value of the stock for the year after that:

\frac{divends x (1 + growth)}{return-growth} = Intrinsic \: Value

to calculate the value of the increase we divide next year over current year.

\frac{divends(1+growth)}{return-growth} \div \frac{divends}{return-growth}\\\\\frac{divends(1+growth)}{return-growth} \times\frac{return-growth}{divends}\\\\\frac{divends(1+growth)}{divends}= 1+ growth

We have demostrate that next year stock should increase by 1 + growth so statement c is correct.

7 0
3 years ago
This year Erie achieved an ROE of 23.9%. Suppose the Board of Directors of Erie mandates that management take measures to increa
allochka39001 [22]

Answer:

c. Erie s ROE will remain the same

Explanation:

As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.

As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.

8 0
3 years ago
The budgeted annual cost of operating a post office truck is $5,500 plus $0.50 per mile. In 2008 the truck was to be driven 25,0
finlep [7]

Answer:

The total cost of operating a truck would be $18000 as calculated below.

Explanation:

The total costs of operating the truck is a combination of fixed costs of $5500 per year and variable of $0.50 per mile ,hence the total cost function is given as:

TC=5500+0.50X

Where represents the number of miles driven per year.

Since X=25000 miles

TC=$5500+($0.50*25000)

TC=$5500+$12500

TC=$18000

The understanding here is that wages paid to the two employees working  with the truck is already embedded in the fixed costs of $5500 per year, otherwise that would been given as a distinct cost entirely.

7 0
3 years ago
Differences in standards of living, credit, buying power, and income distribution are all examples of ____ forces that must be c
Vesnalui [34]

Answer:

The correct answer is

c. economic

good luck

8 0
3 years ago
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