Answer:
The correct answer is B.
Explanation:
Giving the following information:
The current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000.
To calculate the price index we need to make a simple division:
Price index= P1/P0
PI= 2,500/2,000= 1.25*100= 125%
Answer:
the free cash flow valuation model can be used to find the value of a division
Answer:
C. Is an ethanol-gasoline mixture
Explanation:
E-85 is a designation used to represent a combination of ethanol and gasoline. It indicates an ethanol content of 85% and a gasoline content of 15%. Most countries with cold temperatures practice this mixture of ethanol with gasoline, because, ethanol makes it hard for the engines of vehicles to crank.
A major agricultural produce used in the production of ethanol is corn which undergoes fermentation. Some countries who use E-85 as a source of fuel include; the United States, as well as Sweden.
Answer:
Small individual investors will benefit the most.
Explanation:
From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.
Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.
From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.
Answer:
$90
Explanation:
The formula and the computation of the contribution margin per unit are presented below:
Contribution margin per unit = Selling price per unit - variable cost per unit
= $150 - $60
= $90
If we deduct the variable cost per unit from the selling price per unit, then the contribution margin per unit can arrive
We only considered the selling price and the variable cost per unit
