Answer:
1. Measure of the percentage change in earnings before interest and tax or operating cash flow:
B) Degree of operating leverage
2. P/E Ratio of 10 indicates that:
c. The value of the stock will be 10 times the initial investment at the time of maturity.
Explanation:
Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue. With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income. There are many ways to measure a company's degree of operating leverage. One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.
Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share. It is used to evaluate the value of the company's stock. It points out whether the company's stock is undervalued, overvalued, or correctly valued.
Answer:
Maia’s alternative minimum taxable income is: =$119430
Explanation:
Given:
- Regular taxable income of $116,300
- State income taxes $3,130
From that, we can find out the taxable income
= Regular taxable income + State income taxes
= $116,300 + $3,130
=$119430
Because the deduction spent on charitable contributions will not consider as taxable income because charitable contribution is a deductible amount from a person's taxable income.
So, Maia’s alternative minimum taxable income is: =$119430
Answer: $20,455.66
Explanation:
These are fixed payments per year so it is an annuity.
The present value annuity factor for a discount rate of 10% and 6 years duration is 4.3553.
The present value of the investment is therefore;
= 65,000 * 4.3553
= $283,094.50
The special payment in 2 years from today will be;
Special payment = future value of difference between investment amount and investment present value
= (300,000 - 283,094.50) * ( 1 + 10%)^2
= $20,455.66
Answer:
Persuasive labelling
Explanation:
Persuasive labelling is a type of product packaging or appearance that focuses on a promotional theme.
The aim is to increase consumer loyalty and ultimately increase sales.
I'm the given scenario Oriental Foods Inc. uses product labels that informs consumers that the foods are easy to make in 5 minutes or less for a complete meal that's great for lunch or a snack.
This is persuasive labelling
Answer:
-2.33
Explanation:
The computation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)
where,
Change in quantity demanded would be
= Q2 - Q1
= 5,000 - 2,500
= 2,500
And, average of quantity demanded would be
= (5,000 + 2,500) ÷ 2
= 3,750
Change in price would be
= P2 - P1
= $0.45 - $0.60
= -$0.15
And, average of price would be
= ($0.45 + $0.60) ÷ 2
= 0.525
So, after solving this, the price is -2.33
