Answer:
Rate = $33
Maximum Income = $5445
Explanation:
Let x be the amount of increase in rental to achieve maximum profit.
So, Rate = (30+x)
When rate increase by x, the quantity decreases by (180 -5x).
Income = (30+x) * (180 - 5x)
Income = 5400 - 150x + 180x - 5x²
Income = -5x² + 30x + 5400
The income will be maximized when derivative of Income is zero.
Taking derivative,
- dI/dx = 2 * -5x + 1 * 30x° + 0
- -10x + 30 = 0
- -10x = -30
- x = -30 / -10
- x = 3
The rate at which cars should be rented to earn maximum income is 30 + 3 = $33 per day per car.
Maximum Income will be,
Rate = 33
Quantity = 180 - 5(3) = 165 cars
Max Income = 33 * 165 = $5445
Answer:
b.The staffing budget is based on a fixed human resources budget
Explanation:
- The staffing budget is the budget that outlines a money plan to be spent on the employees and consists of the largest investment to the organization.
- It acts as an outline plan for the service companies each staff member corresponds to the salary for the employee in the spreadsheet on a weekly, monthly, and yearly basis.
A. Beyond a reasonable doubt is your answer. The burden of proof is the prosecutions job. And in civil cases, the burden of proof is the person bringing the case to court, i.e the plaintiff.
<span>Electra experienced in this case the effect of legal, regulatory differences between the different markets in which they wished to introduce their new product. By choosing to use the lower motor speed, they eliminated the need to redesign the product for the various markets. Instead, one product could be produced and distributed worldwide.</span>
Answer: The P/E multiple and EVA approach and their use to value common stock.
P/E multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investor's willingness towards the current market price of the stock.
Economic value added(EVA): this approach is a measure to evaluate a company stock based on economic value, it has added at a specified time. It considers the opportunity cost of capital invested in the business and the next operating profit generated by the business.
Explanation: The P/E multiple is the basis to analyze the stock price with the earnings so that the appropriate value of a stock is estimated.
The P/E approach can be used as a starting point in stock valuation. If a stock's P/E ratio is well above its industry average and if the stock's growth potential and risk are similar to other firms in the industry, the stock's price may be too high. To estimate a ball-park value multiply the firm's EPS by the industry average P/E ratio.
An alternative approach is based on the concept of Economic Value Added (EVA). Remember, EVA = Equity(ROE - rs). Companies increase their EVA by investing in projects that provide shareholders with returns greater than the cost of capital. When you purchase a firm's stock, you receive more than just the book value of equity—you also receive a claim on all future value that is created by the firm's managers.
