Answer:
B : $70,000
Explanation:
The formula and the computation of the annual rate of return is shown below:
= Annual net income ÷ average investment
where,
Annual net income is XXXXX
And, the average investment would be
= (Original investment required + salvage value) ÷ 2
= (120,000 + $20,000) ÷ 2
= $140,000 ÷ 2
= $70,000
By placing these values we can easily compute the annual rate of return
Whereas most men's suit brands focus on their craftsmanship and use of high-quality materials, Bluebird Suits distinguishes itself by emphasizing the durability of its products and deriding other suit makers as "delicate.". Bluebird is using positioning method of Competition.
<u>Explanation:</u>
Competition arises when two or more brands have a common objective. Bluebird and other brands are selling men's suits so they compete with each other.
Bluebird is trying to position its product in the market through competition. Bluebird is selling Men's suit. It trying to present its Suits different from other brands by focusing on the durability factor and telling that other brands are delicate. This will make customers believe that Suits of Bluebird will last long as compared to other brands. So, in this way, it can compete easily.
The amount that the company is willing to pay is $12.50.
<h3>What is
CM per pounds?</h3>
CM per pounds means the Contribution margin per pounds that we will calculate below.
Particulars Amount
Selling price $125
Less: Variable cost
Material $40
Labor $22.5
Variable cost <u>$12.5</u>
CM per unit $50
Divide: Pounds used <u>$4</u>
CM per pound <u>$12.5</u>
In conclusion, the amount that the company is willing to pay is $12.50.
Read more about Contribution margin
<em>brainly.com/question/15684424</em>
Answer:
A) have zero alphas
Explanation:
Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.
This is why the CAPM model only considers beta in its calculation.
