Answer:
Profit earning ratio of MMC = 10%
Explanation:
Given:
Current stock price = $100
Yearly profit on each share = $10
Profit earning ratio (P\E ratio) =?
Computation of profit earning ratio:
Profit earning ratio (P\E ratio) = Current stock price / Yearly profit on each share
Profit earning ratio (P\E ratio) = $100 / $10
Profit earning ratio (P\E ratio) = 10
It is computed that MMC's Profit earning ratio is nearer to the industry averages P/E ratio so, the investor can wait for some time to purchase this stock.
Answer:
The correct answer is letter "A": Penetration.
Explanation:
Penetration Pricing means that an initially low price for a new product or service attracts customers away from the competitors. The new company hopes that even if prices rise to normal levels, customers will continue to use their products. Penetration Pricing will yield higher returns on sales and push rivals out of the market if implemented long enough.
ANSWER: There are many ways how entrepreneurs benefit the economy. Few of them are
1) Create Jobs: Entrepreneurs create jobs in the community. When someone opens a new business or expands his new business, he will need human resource to help him to do his works.
2) Wealth Creation: Entrepreneurs pool in their own money and attract investment from lenders, banks and other investors. This mobilizes public wealth.
3) Exports: Entrepreneurs after growing in their businesses will want to export their products as a part of extending their market. This will help gain foreign currency in the country.
Answer
A. Currency exchange-Foreign money
B.Commodity Market-Raw, unprocessed goods
C.Stock Market -Shares in corporations
Explanation
Currency exchange market- this is market that deals with the exchange of foreign currencies where the participants members are able to buy and sell currencies. They are normally made of banks, commercial companies, Forex brokers and many other participants.
Commodity Market- This is a type of market where unprocessed materials are sold. Many producers buy the raw materials from these market for further processing.
Stock market- This is the market that deals with trading of shares. Sellers and buyers of stocks which is also called shares gather here. This normally happens that a certain company needs to raise a certain amount of money so the stock buyer will have bought a piece of that company.
Answer:
d. 13.31%
Explanation:
IRR is the rate at which NPV = 0
IRR 13.31%
Year 0 1 2 3
Cash flow stream -1100.000 450.000 470.000 490.000
Discounting factor 1.000 1.133 1.284 1.455
Discounted cash flows project -1100.000 397.136 366.060 336.804
NPV = Sum of discounted cash flows
NPV Project = 0.000
Where
Discounting factor = (1 + discount rate)^(Corresponding period in years)
Discounted Cashflow = Cash flow stream/discounting factor
IRR = 13.31%
Therefore, The project's IRR is 13.31%
