Why one will succeed and the other will fail ?
Answer: Under the given option; the statement (d) is false. i.e. <u><em>Fluctuations of a stock's returns that are due to firm-specific news are common risks.</em></u>
<em>Fluctuations of a stock's return that are due to </em><u><em>market wide news</em></u><em> are common risk. These tend to fluctuate with fluctuation in market wide news and several other variables. </em>
<em>Therefore, the statement </em> <em>Fluctuations of a stock's returns that are due to firm-specific news are common risks, is </em><u><em>false.</em></u>
<u><em>The correct option to this question is (d)</em></u>
Answer:
False
Explanation:
Purchasing power increases by amount of deflation (negative inflation). So, while inflation lowers purchasing power, deflation increases purchasing power by amount of deflation.
Increase in purchasing power = 7%
Answer: $26.80
Explanation:
The standard portion cost is usually calculated as the cost of ingredient in a standard recipe divided by the number of portion produced by the recipe. That is :
Standard portion cost = cost of ingredients ÷ Number of portions produced by recipe
Standard portion cost = $0.67
Number of portions produced by recipe = 40
Therefore,
Cost of ingredient = (standard portion cost × number of portions produced by recipe)
Cost of ingredient = $0.67 × 40
Cost of ingredient = $26.80
Answer:
a.Company A has a lower return on assets (ROA).
c.Company A has a lower times interest earned (TIE) ratio.
That is options a and c
Explanation:
For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.
ROA= Net income/Total assets
Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.
TIE = Earnings before Interest and Tax/Interest
Due to higher debt of company A it's interest will be higher resulting in low TIE.