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3 years ago

The margin of safety is the amount that sales can drop before the company incurs a loss.

Business

1 answer:

torisob [31]3 years ago

4 0

a.true

Because with said the the margin of safety is the amount that sales can drop before the company incurs a loss.

read the question aloud and it will make sense.

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Over a certain period, large-company stocks had an average return of 12.59 percent, the average risk-free rate was 2.58 percent,

suter [353]

Answer:

The answer is 14.87%

Explanation:

Solution

Given that:

A large company stock had an average return of =12.59%

The average risk free rate = 2.58%

A small company stocks average is =17.45

The next step is to find the risk premium on small-company stocks for this period

Thus,

The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate

So,

Risk premium on small-company stocks = .1745 - 0.258

=0.1487

Therefore the risk premium on small company stocks for the period was 14.87%

6 0

3 years ago

Suppose the nominal GDP is $25 million, the price level is 1.25, and the central bank has set the money supply at $10 million. W

lidiya [134]

Answer:

a) real GDP =$20,000,000

b)velocity of money is 2.50

Explanation:

Nominal GDP is normal spending carried out in terms of dollars.

Nominal GDP is the product of real GDP and price level

Nominal GDP= real GDP*Price level

Given the nominal GDP=$25 million and the price level =1.25 then,

$25000000=real GDP *1.25

$25000000/1.25 = real GDP

$20000000= real GDP

Apply the quantity equation in economics which is;

money supply*velocity of money =price level * real GDP

Given the money supply is=$10,000,000 then,

velocity of money = (price level*real GDP)/money supply

velocity of money = (1.25*20,000,000)/10,000,000

velocity of money =2.50

4 0

3 years ago

Read 2 more answers

Libra Electronics specializes in manufacturing computers and computer accessories. As a means to expand business operations, the

iragen [17]

Answer:

The correct answer is letter "E": strategic plan.

Explanation:

The strategic plan of a company is a managerial tool that allows companies to establish what to do and the path that it has to walk to reach its set objectives considering the changes in demand of its surrounding environment. In such a way, it is a critical key for decision-making within any entity.

The strategic planning provides a real frame for managers and stakeholders so they can understand and evaluate the current situation of the company moreover when the firm is struggling or pursuing exploring new markets.

5 0

3 years ago

Sacrificing your own self interests for the good of the overall goal is ______.

Firlakuza [10]

That is intiative, its basically commiting yourself to doing something and putting everything else behind you

8 0

3 years ago

Read 2 more answers

How many dollars does Johnson & Johnson make every 20 seconds?

Alex Ar [27]

Answer:

Johnson & Johnson make $51,433.28 every 20 seconds