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Troyanec [42]
3 years ago
12

Consider the following statement about real options: Decision tree analysis is more commonly used in valuing securities than rea

l assets. True or False: The preceding statement is correct. O False O True which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project's life? O Flexibility option O Abandonment option O Timing option O Expansion option Consider the following example: Clemens Inc. is considering a$100 million investment in a new line of soft drinks. However, $100 million is a huge investment for Clemens; if things turn bad, it could wipe out the company. A few senior managers have suggested a smaller investment of $20 million to see if the market is as strong as they hope it is. If demand is strong and the apportunity is still available, Clemens will increase its investment ata later date. This example describes a real option to
Business
1 answer:
maksim [4K]3 years ago
7 0

Answer:

Flexibility option

Explanation:

False: It can be used equally for both.

Firms often have an option to vary inputs to the production or change the output from production. Such options are known as flexible production options.\  real option to expand.

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What is the rate of return when 30 shares of Stock
sattari [20]

Answer:

-0.67%

Explanation:

We are told that 30 shares of Stock are purchased for $30/share..

This gives a total value of: 30 × 30 = $900.

Now,they are sold for $900 with a commission of $6. This means the final money getting to the seller is; 900 - 6 = $894.

Thus; rate of return percentage = (894 - 900)/894) × 100% = -0.67%

6 0
3 years ago
Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market each, a
Bess [88]

Answer:

Total widgets supplied in the market will be 4000

So option (d) will be correct answer

Explanation:

We have given total number of suppliers = 100

It is given that half of the suppliers supply 35 widgets

So 50 supplier supply 35 widgets each

So total number widgets supplied by 50 supplier = 50×35 = 1750

A quarter, that is 25 supplier supply 40 widgets

So widgets supplied by 25 supplier = 25×40 = 1000

And other quarter, that is 25 supplier supply 50 widgets each

So widgets supplied by 25 supplier = 25×50 = 1250

So total widgets supplied in the market will be = 1750+1000+1250 = 4000

So option (d) will be correct answer

5 0
3 years ago
The primary goal of the federal reserve system is to/12562961/289d096f?utm_source=registration
Finger [1]
The Federal Reserve System<span> often referred to as the </span>Federal Reserve<span> or simply the </span>Fed<span> is the central </span>bank<span> of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial </span>system<span>.</span>
3 0
3 years ago
Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might
Olenka [21]

Answer:

Vacoule

Explanation:

vacuole can be regarded as membrane-bound organelle. They can be found in cell of fungi as well as plant, I could also be found in some of the bacteria and protist cell.Those that are found in animal cell do sequester waste products in the cell, and those in plant cell helps in maintaining water balance. In plant cell, just single vacoule could take up so much space.It should be noted that Large membranous sacs are more prevalent in plant cells and some protozoa than in animal cells. These sacs in plant cells might function in vacoule.

4 0
3 years ago
Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The comp
Tasya [4]

Answer:

c) VOH/hr = $6 per hour

a) Fixed overhead cost = $ 15,750

Explanation:

Overhead cost is the total of all indirect costs. Indirect costs are those which are not specifically for a particular product. They include indirect material cost, indirect labour cost and indirect expenses.

Variable overhead cost is the portion of the total overhead cost which changes with activity level changes. For example, when more machine hours are worked, more kilowatts of power would be consumed and therefore increase the power cost.

Fixed overhead costs are those which remain on change within a given level of activity.

To separate the fixed overhead from the variable, we use the following relationships below:

VOH/hr = <u>Total [email protected] high activity- Total Overhead @low activity</u>

                                        High activity - Low activity

Fixed Overhead = Total overhead @ high act. - (VOH/hr × High activity)

Note that activity level level is measured in machine hours in this question.

Total overhead = Average cost per hour  × Number of hours

Now we can determine the variable overheads per machine hour (VOH/hr)

VOH/hr =     <u>(3500× $10.50) - (3,000× $11.25)</u>

                       3,500 - 3,000 machine hours

             =          <u>$ (36,750 -  33750)</u>

                              500 hrs

              =        $6 per hour

Fixed overhead cost = ( 3500 ×10.50) - ($6 × 3500)

                                  =$ 15,750

8 0
3 years ago
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