<span>Lower price increases the real incomes of buyers, enabling them to purchase more.</span>
Answer:
d. Milton Friedman
Explanation:
Milton Friedman is an American economist that believed in the free market capitalism. He was a free market advocate. He therefore advocated that the social responsibility of a manager is to maximize shareholders returns.
Answer:
The correct option which represents the ultimate goal of capital budgeting is D) .
Explanation:
Capital budgeting is a kind of planning process which an organization undertakes to see if the investments or projects ( usually long term ) they are considering to invest in are worth funding . This process actually begins with the compiling a list of potential future projects. The ultimate goal of this process is to estimate what would be the effect on organizations cash flow , if a project is accepted or rejected.
Answer:
True
Explanation:
The Bass New forecasting model is a forecasting model that is commonly used to estimate the sales of a product at a certain in future and it is used for highly durable goods.
The bass new forecasting model wad developed by Frank Bass and it has a formula
<u> f ( t ) </u> = p + qF ( t )
1 - f ( t )
where:
f ( t ) is the change of the installed base fraction
F(t) is the installed base fraction
p is the coefficient of innovation
q is the coefficient of imitation
Cheers.
Answer:
(a) 62%
(b) 3.83 times
(c) Yes
Explanation:
(a) Ellie's debt ratio:
= Total Debt ÷ Total assets
= $39 million ÷ $63 million
= 0.62 or 62%
(b) Ellie's times interest earned ratio:
= Interest ÷ EBIT
= $23 million ÷ $6 million
= 3.83 times
(c) Yes, it has enough times interest ratio.
If Interest expenses increased to $7 Million, then
Company could easily raise more debt to finance additional funding needs.
