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saw5 [17]
3 years ago
11

Sometimes when the low bidder wins the bid on a project, it is because they have underbid the project. In other words, the bid t

hey have submitted probably won't even cover the costs of the project. When this happens, the low bidder is said to suffer from the:________.
Business
2 answers:
rewona [7]3 years ago
6 0

Answer:

The low bidder is said to suffer from the winners curse

Explanation:

The winner’s curse describes a common problem in negotiation: lacking an advanced understanding of this phenomenon, the party who wins an auction of a commodity of uncertain value with a fair number of bidders typically pays more than the asset is actually worth.

The low bidder winning the project is said to be suffering from the winners curse which translate to him having to bear more cost than he anticipate for the project

Eduardwww [97]3 years ago
4 0

Answer: Winners curse

Explanation:

Winners curse could be seen as a situation where all bidders have the same value for an item and they receive a private signals where in most occasions the winner is that individual that over estimate or overpays for the bid. When the winner of the bid exceed the true worth of that item. Most Ines this can result to loss in order to carry out the work, due to the bidder overestimated in their bid.

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In the _____ stage of the advertising development process, the Fallon team conducts research to determine whether or not consume
Alja [10]

Answer:

Evaluation Phase

Explanation:

5 0
3 years ago
A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type
PtichkaEL [24]

Answer:

a. purchases journal; expenditure cycle

Explanation:

When a business recieves inventory from a vendor they already have a credit line with, it will be recorded in the purchases journal. A purchases journal is a prime book of entry or day book which is used to keep track of items that are accounts payable.

The cycle involved in this scenario is the expenditure cycle which involves the activities that a business goes through in the acquisition and payment for goods and services.

The reciept of inventory from the vendor is in the expenditure cycle.

6 0
4 years ago
You've collected the following information about Molino, Inc.: Sales $ 215,000 Net income $ 17,300 Dividends $ 9,400 Total debt
evablogger [386]

Answer:

(a) 15.46%

(b) $11,904.11

(c) 6.15%

Explanation:

(a) Sustainable growth rate:

Return\ on\ equity\ (ROE)=\frac{Net\ income}{Total\ equity}

Return\ on\ equity\ (ROE)=\frac{17,300}{ 59,000}

                                                = 29.32%

Retention Ratio = 1 - Dividend Payout

                          =1-[\frac{9,400}{17,300}]

                                 = 45.66%

Sustainable\ growth\ rate=\frac{(ROE\times Retention\ Ratio)}{(1-ROE\times Retention\ Ratio)}

Sustainable\ growth\ rate=\frac{(0.2932\times 0.4566)}{(1-0.2932\times 0.4566)}

=\frac{0.1338}{0.8662}

= 0.15446

= 15.46%

(b) Additional borrowing:

New Total Asset = (Total debt + Total equity) × (1 + Sustainable growth rate)

= (77,000+59,000) × (1 + 15.46%)

= 157025.4

New\ Debt=\frac{D}{D+E}\times New\ Total\ Asset

New\ Debt=\frac{77,000}{77,000+59,000}\times 157024.4

                         = $88904.11

Increase in Borrowing = New debt - old debt

                                     = $88,904.11 - $77,000

                                     = $11,904.11

(c) Internal growth rate:

ROA=\frac{Net\ income}{Debt+equity}

ROA=\frac{17,300}{77,000+59,000}\times 100

= 12.72%

Internal\ growth\ rate=\frac{(ROA\times Retention\ Ratio)}{(1-ROA\times Retention\ Ratio)}

Internal\ growth\ rate=\frac{(0.1272\times 0.4566)}{(1-0.1272\times 0.4566)}

=\frac{0.0580}{0.942}

= 0.0615

= 6.15%

6 0
3 years ago
Which of the following is the most likely result of a quota that limits the importation of steel into the United States? a. a re
I am Lyosha [343]

Answer:

  • <u><em>d. a reduction in output and employment in domestic industries that utilize steel as a resource</em></u>

Explanation:

The first impact of a <em>quota that limits the importation of steel into the United States </em>is that the domestic market will experience a decrease on the number of suppliers.

As a consequence, the domestic manufacturers will have less competition and they will be able to increase the prices of the steel in the domestic market, instead of struggling to decrease the costs, or improve the quality, or increase the productivity, or enhance the service.

Thus, the domestic indutries that utilize the steel will face an increase on the prices of their main raw material, becoming less competitive. Then, <em>most likely</em>, their price should increase and their sales and production should decrease; thus, <em>they will face a reduction in output and employment.</em>

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4 years ago
At a recent family gathering you overheard your two brothers debating the merits of their vacation savings plans. Kyle, your you
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3 years ago
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