Answer:
B)Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.
Explanation:
The financial planning process can be regarded as series of steps which states best way of using money and investments as well as other assets so that financial goals can be potentially achieved. Most of the financial plans has its focus savings of goals as well as payoff goals even estate planning goals so that roadmap to financial freedom can be set.
The steps that can be taken in the financial planning process are;
✓ Forecast the funds that will be generated internally. If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.
✓Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios
✓Determine the amount of capital that will be needed to support the plan. e. Monitor operations
Answer:
NO , 100 shares purchase of GMS is not included in GDP
Explanation:
GDP is gross value of final goods & services produced by an economy in its domestic territory during a financial year .
Purchase of 100 Shares of General Motor stock is not included in GDP : Because it does not lead to any new production of goods & services , is mere transfer of ownership from company to shareholders . Similarly , Debenture selling is also not included
It is analogous to the rule of excluding second hand goods from GDP , since they have not lead to any new goods / services & are mere transferred from one owner to another .
However , any Brokage fee / commission paid related to either of these is included because it is factor income for a productive intermediary service. Also , returns on shares i.e Dividend (or even Interest on debetures) are included - since these are factor income to factors of production (capital component share) .
Answer:
Instructions are listed below.
Explanation:
A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.
Sales=
Variable costs:
Cost of good sold=
Sales commissions=
Shipping expense=
Total variable cost (-)
Contribution margin=
Fixed costs:
Advertising expense=
Shipping expense=
Administrative salaries=
Insurance expense=
Depreciation expense=
Total fixed cost= (-)
Net operating profit=
Degree of operating leverage= % change in EBIT/ % change in sales
Answer: 14.106%
Explanation:
The basic formula for calculating the Return on Equity is,
ROE = Net Income / Total Equity
How since we are missing some figures we can use the DuPont Formula for calculating the ROE that uses the components of the Net Income and Total Equity.
Using the DuPont Formula,
ROE = Net Profit margin x Asset Turnover x Assets / Equity
Plugging in the figures would be,
ROE = 0.0322 x 1.76 x (45.8/18.4)
= 0.141064
= 14.106 %