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bezimeni [28]
3 years ago
10

Which is an example of a short-term investment

Business
1 answer:
Alenkasestr [34]3 years ago
3 0
Money market accounts
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Praxis Corp. forecasts the following income statement for the next year:
Annette [7]

Answer: a. 1.42

b) 2.74

c) 3.89

Explanation:

a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.

It is calculated with the formula,

= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)

= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)

= 1.42

b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.

The formula is,

=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax

= 301,000/110,000

= 2.74

c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.

It is calculated by multiplying DOL and DFL.

= 1.42 * 2.74

= 3.89

Should you need any clarification just hit that comment button. Cheers.

3 0
3 years ago
The circles shown to the right are similar but not exactly the same. this is an example of
kumpel [21]

This is an example of variation. The coefficient of variation, also referred to as the Spearman coefficient of variation, is a statistical measure that informs us about the relative dispersion of a data set. Its calculation is obtained by dividing the standard deviation<span> between the absolute value of the average of the set and it is usually expressed as a percentage for its better understanding.</span>

4 0
3 years ago
2. Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize pr
finlep [7]

Answer: They are both right.

Explanation:

Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.

Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.

With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.

5 0
3 years ago
Polani was giving ahmed directions to her house. She told him to turn right at the gas station, and then go straight for three l
postnew [5]

Based on the fact that Polani was using the gas station, lights, and the fast-food restaurants, the factor used to help Ahmed recall the directions were landmarks.

<h3>How to direct with landmarks?</h3>

Directing a person with landmarks is one of the best and most effective ways to direct people. This is because landmarks are easily noticeable and so can be used as markers to help a person to navigate across town and reach their destination.

Polani used the landmarks, the gas station, street lights, and the fast-food restaurant. Getting to each of these places is easy because it is noticeable so Polani used landmarks to help Ahmed.

Find out more on giving directions at brainly.com/question/28108225

#SPJ1

4 0
1 year ago
An owner who wants to have limited liability should form which type of business enterprise?
Debora [2.8K]
They should form a corporation because a partnership or sole proprietorship have unlimited liability.
3 0
3 years ago
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