an example of overconfidence would be: Joe makes a stock price prediction and believes that there is only a 5% chance that his estimate is wrong; overlooking recent articles about the bad financial health of the business.
Buying stocks without any prior knowledge in finance would provide people with 50% rate of success. Good stock traders usually could improve their success rate up to 70% while success rate of 95% is very unlikely. Especially if the financial information showed a bad sign. The fact that Bill still put his money on the company's stock indicates that he is overconfident.
Answer:
The question is incomplete. The complete is given below
OUTPUT PRICE MR TC MC
1 100 100 100 30
2 90 80 63 26
3 80 60 52.67 32
4 70 40 49.5 40
5 60 20 49.6 50
6 50 0 50 52
7 40 -20 52.29 66
8 30 -40 55.75 80
9 20 -60 60.67 100
The total revenue is $280
Explanation:
Profit is maximized at the level of output where marginal revenue (MR) is equal marginal cost (MC).
Marginal revenue is the extra revenue made from selling one additional unit of a product. It is the increase in total revenue as result of selling one more unit. It is given in the third column above.
Marginal cost: It is the increase in total cost as a result of producing extra one unit- it is given in the last column
Profit maximizing-output: The optimal level of output where marginal revenue is equal to marginal cost. It is the ascertained to be 4 under the first column above. At this level MR $40 = MC $40
Profit maximizing price: The selling price at the profit-maximizing output. It is $70 here.
Total revenue that maximized profit= profit-maximizing price × Profit maximizing-output
$70 × 4= $280
Answer:
The correct answer is the option A: Margin of safety ratio.
Explanation:
To begin with, the name of <em>"Margin of Safety"</em>, in the field of business and accounting, is refered to a ratio whose main purpose is to establish the point in where the company knows that it has to sale obligately due to the fact that at that point the company can be sure that they have covered the fixed costs of it and after that point every sale will became a profit for the company. So that is why that this ratio indicates the percentage of each sales dollar that is available to cover those costs.
Answer:
B) Pre-Tax
Explanation:
The income statement refers to the statement in which the all expenses are deducted from the revenue so that the operating income could come i.e. EBIT
For the value that disclosed above the operating income would be pre tax as after the EBIT, the income tax expense, the interest expense should be deducted to find out the Profit after tax
So in this situation, the option B is correct
