Answer:
Arithmetic = 3%
Geometric = 2.37%
Explanation:
The arithmetic average of 'n' returns is given by:
For five returns of 5% ,21%, -12%, 7%, and -6%:
The geometric average of 'n' returns is given by:
![G=\sqrt[n]{(1+r_1)*(1+r_2)*...*(1+r_n)}-1](https://tex.z-dn.net/?f=G%3D%5Csqrt%5Bn%5D%7B%281%2Br_1%29%2A%281%2Br_2%29%2A...%2A%281%2Br_n%29%7D-1)
For five returns of 5% ,21%, -12%, 7%, and -6%:
![G=\sqrt[5]{(1+0.05)*(1+0.21)*(1-0.12)*(1+0.07)*(1-0.06)}-1\\G=0.0237=2.37\%](https://tex.z-dn.net/?f=G%3D%5Csqrt%5B5%5D%7B%281%2B0.05%29%2A%281%2B0.21%29%2A%281-0.12%29%2A%281%2B0.07%29%2A%281-0.06%29%7D-1%5C%5CG%3D0.0237%3D2.37%5C%25)
Answer:
The correct answer is letter "B": a price increase results in higher profits; otherwise, the market is too narrow.
Explanation:
When firms are interested in acquisitions or mergers they have to determine if the target company is part of a relevant market. The term refers to the competitive conditions that offer the economy where the target company is located. The relevant market also considers the type of product or service the target company offers.
<em>Relevant markets optimal for mergers are those where an increase in prices generates more revenue for firms. If there are too many competitors offering undifferentiated products, the market will not allow organizations to profit from price increases. Those markets, then, are too narrow.</em>
Firms can raise the financial capital they need to pay for such projects in four main ways: (1) from early-stage investors; (2) by reinvesting profits; (3) by borrowing through banks or bonds; and (4) by selling stock. When owners of a business choose sources of financial capital, they also choose how to pay for them.
ummmm I ain't sure if this is the answer you need please read properly before you write
Answer:
A) Cash is debited for $294,000. and,
C) Common Stock is credited for $294,000.
Explanation:
When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).
Answer:
Number of units that must be sold to earn the target profit is 3000 units.
The contribution margin ratio is 0.70
Explanation:
We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired
The break even point in units is calculated by dividing the fixed cost by the contribution margin per unit. To calculate the number of units required to earn the desired profit, we add the desired profit to fixed cost and divide it by the contribution margin per unit.
Contribution margin per unit = 250 - 75 = $175
Number of units required to earn target profit = (325000 + 200000) / 175
Number of units required to earn target profit = 3000 units
The contribution margin ratio is = 175 / 250 = 0.7 or 70%
Dollar Sales required to earn target profit = $4,812,500
