Answer:
The situation described in the question is referred to as the Prisoner's Dilemma.
Explanation:
The prisoner's dilemma is an example of a situation in Game Theory.
Game Theory is a subject which can be found under behavioural economics with strong roots in psychology. It is related to the science of decision making in by people and how those decisions affect others. In the simplest of cases, just as is given in the question, the dynamics is between two individuals.
According to the theory, sometimes an equilibrium is reached. This point refers to point in a game or a scenario where the decision by the two individuals is firmed up and as a result, the consequences of such determined.
If the decision by each player is such that it can no longer be changed by any of the players in order to improve their benefits accruable, such decisions are referred to as the Nash Equilibrium.
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Answer:
SungSam Enterprises's operating leverage is 2.0
Explanation:
Operating leverage is a financial efficiency ratio to measure the degree to which a firm or project can increase operating income by increasing revenue.
Operating leverage is calculated by using following formula:
Operating leverage = Contribution margin/Net income
SungSam Enterprises has Contribution margin of $160,000 and Income from operations of $80,000
SungSam Enterprises's operating leverage = $160,000/$80,000 = 2.0
Answer:
18.11%
Explanation:
Data provided in the question:
Selling price = $181
Fees charged = 4% = 0.04
Face value = $181 per share
Dividend paid each year = 10% = 0.10
Annual growth rate = 7% = 0.07
Now,
Uber's cost of capital of this common stock
= [ D1 ÷ (Face value - D1)] + Growth rate
= [ ( $181 × 0.1) ÷ ($181 - 181 × 0.1)] + 0.07
= [ 18.1 ÷ 162.9 ] + 0.07
= 0.1811
or
= 0.1811 × 100% = 18.11%
The answer to this question is C, $5,790. Jeff will need $5,790.
Answer:
All of the following are organization-directed benefits associated with offering unconditional guarantees except:
a. the guarantee provides a means to avoid bankruptcy.
Explanation:
Providing or offering customers unconditional guarantees does not help the company to avoid bankruptcy. Bankruptcy arises from inadequate financing resulting from overtrading. Importantly, offering guarantees to customers communicates a clear performance goal to employees to improve service delivery to customers.
